All Forum Posts by: Account Closed

Hello,

I have a flipper business associate that I loan money for rehab projects in Portland Oregon.  He uses a business loan to purchase the property (historically 50-60 cents to the dollar for selling price) and I loan him the rehab money (15-19% interest only for 4-5 months).  Both loans are recorded on title for the property.  I use fairly cured underwriting where I determine, if foreclose is needed, how much money would be left.  On average, a theoretical foreclosure would pay off the first, second, and have 57% of the second left.  In essence the second covered by 157%, e.g. if I loaned $100k, net foreclosure after 1st and 2nd is paid would be $57k.  I am aware there is risk and a lot that could go wrong (foreclosure costs, opportunity costs, property value goes down, property is vandalized/destroyed, etc.).

I was looking into ways to further mitigate the risk to the 2nd note.  I was thinking I could request a subordination clause that would allow me to buy out the 1st position in an event of a foreclosure.  If this is a good option, do I just call his bank and ask for the next note?  What other ways could I mitigate the 2nd position risk?  Thank you for your time.

- Joe

@Account Closed

That makes sense.  Thanks for clarifying.  

Does anyone have the experience getting licensed as a distressed home consultant in Washington State?  I would imagine anyone marketing to sellers would want the license whether you are targeting distressed homeowner or not.  The law always seemed like it made real estate agents susceptible to fines and litigation.

@David Istanich

Thank you so much for your response.  I am going to search for a new exterminator that emphasises entry points.

@Christine Kankowski

I had an exterminator set the traps/poison with limited success.  Wish mine was only a $100 for the job.  Spent way more and no results.  Appears they all are trying to get a maintenance contract.

Hello,

I have a family of mice living in the attic/walls.  They are not in the living spaces.  I had traps set in the attic, crawlspace, and exterior with limited success.  I located the the entry point and plan on sealing it but I am not sure I should trap them in the house.  Should I seal the hole and hope they don't create a new access point?  Or should I leave the hole and continue to poison and trap?  Any advice is greatly appreciated.  

@Greg Lovern

Really interesting interpretation of 61.34.  Maybe you could make a separate forum post concerning your interpretation since it diverges a bit from the original discussion.  Really good stuff!

@Kitty Jones

Yes but you will be in a second position on the primary residence.  No legal hurdles I am aware of for a small private lender (no underwriting standards for YOUR risk tolerance) but I am not a lawyer and speaking only to my experience.  What you will need to do is...

*  Determine your own risk tolerance,

*  Negotiate note terms,

*  Draft a promissory note detailing the terms, and 

*  Record a trust deed for the collateral properties.  

I'd start working with a title company to help you through the process for recording and seek a lawyer to draft the promissory note.  

Paige Kelsy,

I didn't realize Portland shopped so much in Vancouver.  What is your source for net absorption statistics?  Thank you for the insight!

@Paige Kelsey

How has these insights impacted your analysis concerning Vancouver Washington office space rentals? I was looking into a commercial SFR and wasn't sure how to analyze the listing in Medford Oregon. I don't want to make the mistake using SFR rental analysis on commercial space.