All Forum Posts by: Linda L.

@Dion DePaoli

"For instance, a loan on an investment property which carries no assignment of leases and rents."

If a loan is on an commercial property, say a for profit day care center/retail store or non for profit charity organization or church, can we do assignment on the monthly operating income or grant?

@Mike H. @Dawn Anastasi

In the past few months, I actually did some study on few turnkey properties from different companies.

Basically, the only number I take from them is the purchase price. the rest of numbers, I use 50% rule, and do my own research on the rents and tax,etc.

Some, you are not necessary paying for the premium, but you are paying retail for sure. The premium is really buying the "beginning convenience" and maybe at some level of feeling there's handing hands...lol

Interesting thing is that often time, their prices are pretty close to MLS market price. So you are thinking to yourself, if I buy from MLS, and I have to spend another $10-20K to rehab for 2-3 months, vs turkey is pretty much ready to rent out. In the end, you are paying the same or less buying the turkey.

Of course, there will be some issues under it as well, location, crappy rehab work, etc.

So I find Mike's idea providing the great alternative to at least placing some control in the process.

@Mike H.

Very good suggestion.

Have you done this in your out of state market? How do you find such people with the skills you are looking for?

@Roy N.

your Texas numbers look great.

What are the criteria are you looking to meet your number goal?

Do you consider this class C neighborhood?

@Account Closed

The way I see it is this—

Whoever created this bill think they are protecting non-accredited investors by NOT allowing them to participate those deals if they don’t have enough net worth to lose.

Also, they assume that accredited investors who qualify as such based on their net worth, they must be at least financially sophisticated to make the educated investment. Hence, they are not banned or prevent from making this type of investment.

Such regulation is not really beneficial for non-accredited investors or accredited investors.

It's just silly.

@Account Closed

I am curious about what recent CA law you referred to?

Not really related to my original post. Just another question arised from the discussion.---

Although 2nd have the redemption rights, it seems to me that 2nd has much weaker stand to protect their interests compared to the 1st.

So if the borrower gets the 1st loan from other lenders, say 80%, then seek seller financing as 2nd, say 15%, isn't it very risky for the seller? Why would people want to do it? to help with the sale of property?

@Nate Crump

There's some discussion here

http://www.biggerpockets.com/forums/70/topics/97656-noteworthy-convention-2013---is-it-worth-it

Thanks, everyone for the very educational discussion. Again, I learned something that I had no idea where to approach orginally.

DIL is just my random idea without much considering the other perspectives. I know now to stay "conventional" on this, not being creative..:)

@Jon Holdman

Thank you Jon.

Very good reminder on a deed in lieu. I understand it's possibly done after the borrower defaults.

Can we ask the borrower to sign something like a deed in lieu in advance when lending out the money, especially for the fix and flip project type of loan?