All Forum Posts by: Dion DePaoli

The most important thing that comes from a tenant is a payment. People are people not dogs, they don't need to be nor can you "train" them. I have always allowed for a grace period and then charged a late fee if they miss it. I have found it to be less hassles and I don't have to listen to excuses because it is fair. Give yourself the opportunity to be in the right when you do have to enforce rules not a tyrant. (my two cents)

Well, the point in your offer is to get a deal structured that the seller or owner will take and you will benefit from. If you offer a lease to him at par with the current NOI then you have to go get your upside by renting the units out. If he will take less than that its pretty simple.

If you gave a little bit more information regarding the lease risk, it might help some more opinions. How many units occupied and vacant and what type of general cash is flowing through your block of units.

BPO's have more than one value in them. They include generically As Is, As Is Repaired, Quick Sale. They are not one number reports like appraisals.

It is possible the BPO is off, but do not under estimate the person looking at the BPO. Perhaps send some comps to the listing agent and see what they can do. Perhaps the seller thinks the BPO is correct and you are under valuing the property.

Value is what a buyer is willing buy for and a seller is willing to sell for, it is not a science it is an opinion. Which sometimes two opinions are not the same.

I don't think I was clear on the LTV, it should be 3.0% to 5.0%. Again this is going to be due to the lender's overlay on the Fannie Guideline.

Homepath is the REO brand name for Fannie Mae. Subsequently they offer financing on the properties through approved seller's into Fannie Mae.

The underwriting guideline reads as follows:

Maximum Financed Properties

???? Loans secured by Second Home or Investment Property limit the number of financed 1-4 family proprerties that all borrowers may own to a total of four including the subject ("Loans secured by Second Home or Investment Properties.....it does NOT say Primary Residence)

????The financed property limit applies to the borrower's ownership of 1- 4 unit financed properties or mortgage obligations on such properties and is cumulative for all borrowers. These limitations apply to the total number of properties financed, not to the number of mortgages on the property.

By that I would say that as long as it is your Primary Residence you are OK with four other properties. Keep in mind that a lender may have an overlay on the Fannie guidelines for the program which means they can be more strict to prevent buybacks. So speak to two different lenders who can do the program. Also keep in mind, you will need to carry back the needed reserves for all of the investment properties.

Good luck, I think you can get it done.

There is no simple answer to this. It will be lender and servicer specific. If he just wants out for no good reason, he could face the lender pursuing a deficiency judgement against him/her if the state permits. Also for investment properties any forgiven principal is considered income and will bring tax consequences.

The first thing to do is really just ask the lender. Bare in mind, banks are not too keen to just take a loss because a borrower doesn't want a property any longer.

New construction and development is still a very slow almost dead market. Really on the big guys (KB, Lennar, etc) are even trying to do anything. The consideration is what does the REO in your area look like. If there are defunct developments or newer homes still hitting the open market that will be your competition. Likely would push your needed sale price down. Construction home loans are still relatively hard to find.

If it were me, I would land bank it a couple more years. Its free and clear and all you have is time. You are not missing an opportunity, you own the land and are waiting for a little more stability in housing starts to enter the market.

I got lost as soon as I read that. So you do NOT have a formal partnership in any manner?

You are not on the deed and you are not an owner of a company which owns the asset. How have you guys handled your tax implications in the last several years?

You probably should speak to both an accountant and a local attorney. If the property is vested in the name of your brother, you are not an owner and you could trigger a sale when you try and take ownership. You can still likely drop the asset into a LLC or LP and then buy out your brother but your brother is still the mortgagor. Not sure if you had a plan for that.

Either way go speak with some local folks before the spiderweb gets too complicated.

You could always look up a filed form in public record and use that as a guide. Or any title company or real estate attorney can also do this for you. Try the following but have someone look it over before you file it.

From top to bottom left to right spaces:

1. Name of Trustee
2. [blank]
3. Date of Deed of Trust origination (executed loan date)
4. Borrowers (Trustors)
5. Lenders (Beneficiary)
6. Deed of Trust Reference Number
7. Date of Recording of Deed of Trust
8. County Clerk Book number from recorded DOT
9. County Clerk Page number from recorded DOT
10. County Name
11. State Name
12. [blank]
13. [blank]
14. Subject Property Street Address
15. County Name
16. State Name
17. Legal Description of Subject Property

I think the rest you guys can figure out for the notary and entity designation. All of the information you need should be on the recorded Deed of Trust as that is what you are releasing.

I am not sure there is a listed average anywhere. Some markets are a little different. I have had some contractors charge $25 to secure a window and $75 to secure a door. I have also had to tear down exterior staircases and other less than common situations. You might try and ask the bank's asset manager or the servicing asset manager about common fees in your area. I don't see why they would not tell you.