All Forum Posts by: Matt Mathews

Jon,
Just curious? Do you have any IRS or securities law info to back up your comments? I have never heard of that one before. I'm very interested.

Yes you can manage it and over see the property. You just can't (as I call it), lift a hammer, put a rental ad in the paper etc. That doesn't mean you can't hire a relative to fix or find renters or for that matter, manage the property for you. Go to my blog site below and you will find resources to address you questions.

No Deal! Class "C" properties are more trouble than their worth, unless of course your cash rich and the property is located in a high rent district. AND! The city is supporting you in rehabbing a run down ugly property. I have seen many properties like the one your describing end up on the cities Eminent Domain list. In my professional opinion, this property needs some serious due diligence performed before you ever think about running the numbers. The only positive to this deal would be if the city, county etc is giving you incentives to bring the neighborhood back to life. That could be a good thing!

Bill is certainly the expert, when it comes to 1031 exchanges. I highly recommend you visit his web site and take advantage of everything he has to offer. Thanks Bill.

There is no easy way to do a short sale without a Hardship of some sort. However, if you only have the one mortgage (no 2nd etc), you need to find out who the actual Investor is that owns your mortgage. Most if not all major lenders only service the loan and collect payments. Once you know who owns your loan then you can begin to maybe negotiate directly with that Investor first to see if that will accept the loss on your loan. The bottom line is; You still need to make a compelling case as to why other than you just don't want your condo anymore. That reason won't fly!! It's not impossible, but without a real hardship case your chances of negotiating a short sale are pretty slim. My advice is; Choose another strategy to accomplish your goal.

First of all. Bankruptcy stops any foreclosure. A question to ask is; What type of Bankruptcy was it? 7, 11, 13 etc. If it was a 11 or 13. Chances are the seller may be able to keep the property. If 7 (total liquation) then the courts have control over the asset-not the bank. Even if the Lender pre-approved the sale-it now will become null & void until bankruptcy court rules. That goes for the sellers attorney as well.

Personally,I feel you should purchase it, if you are willing to live in the other unit. As owner/occupant it qualifies for FHA financing. The rent from the other unit will pay part of your mortgage. If it needs any repairs you can also get a FHA 203K loan. As a first time buyer this would be a great way to get started investing. Also living in duplex as owner/landlord will give you more control over your tenant. Also, only after a Year that property will qualify for a 1031 exchange or be used as additional income and leverage to purchase another home or investment property. It's a Win-Win deal as far as I'm concerned.

Welcome aboard Vince!
Old School Pro. Musican-Entertainer 30yrs Real Estate Investments/Retirement Planning Advisor. Exclusive Buyer Agent. Yucaipa, If your looking for property in this area, let me know. I specialize in Seller Financing and Lease Options. I also still play. Strong Vocals, Keys & guitar. Let me know if I can help.

You may want to consider selling property using a Master Equity Share L/O. No capital gains, steady Income for term of lease option period. With the Equity share you will also benefit from any appreciation as a % agreed upon. When the option is exercised you can then carry a note using a Deferred Sales Trust and continue tax deferral with no seller liability should buyer default.

Just curious? Is the builder still in business and building new homes? If so did the builder lower prices in that sub division for the same model home? I'm just wondering why this New Home would be a short sale when half the project isn't even finished. Unless that builder is belly up and new construction is on hold or the lender owns the project-and unless that home owner has a serious hard ship (Job loss, missed payments, applied for a loan mod etc under Fed bail-out rules, No short sale can take place period!! To note! New legislation pending by you know who to virtually stop all foreclosures until home owner goes through and has exhausted all methods available to stay in home. I doubt if it will get passed, but until it does most lenders will have to stop foreclosure proceedings. Some already have. Sorry to be so negative, but I do this for a living. I seriously recommend that all investors get educated about what's really going on behind closed doors at the Fed and also learn about the changes being implemented already with banks and lender across the US. I just spent a whole day in a workshop given by BoA, Wells Fargo, Chase Top Executives, and asset managers etc. Some of the changes and procedures are already in place for serious Fed policys coming to a neighborhood near you.