All Forum Posts by: Eric M.

Sorry to hear Jon, but we have all had it happen. I have also been lucky to have the borrower agree to DIL's, but I have often how I can structure the loan/mortgage to ensure that the DIL is offered.
My attorney doesn't say this is not possible but has not been comfortable with this idea; and I wondered if anyone has any strategies they have used.
Obviously not allowing other liens is one thing you have to do but how else could you structure an advance agreement to do a DIL in case of default?

Thanks

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Nick is right on about all his answers.

Do not let a realtor negotiate for you.

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The 94% makes alot more sense if you are basically paying BPO value. No one on BP is looking to do that. Should be getting at least 15% off BPO,
But I understand you are a realtor so your incentives are in having the buyer overpay.
Loss Mits must love you guys!

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I recommend Angie's List.

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Originally posted by Brooks Conkle:

I can tell you from experience that you don't always need credit or income to get hard money.
I renovate houses and my first loan came from a local attorney after we met for lunch only once.
Didn't ask how my credit was, my job, etc.
He just wanted to know that his money was tied to a secured asset and he was only loaning 70% of what the property was worth.
Any investor will take this deal if they feel comfortable with it.
Read the whole story on my blog below...

I would have to agree. Many small, individual, local Hard Money Lenders such as myself make will make loans on their gut. The stronger the deal you have made on your purchase the less likely you have to put up cash.
You just have to keep looking til you find us.

Also, glad to hear the OP had success with the refi. This is actually one of the biggest stumbling blocks for investors who use hard money and the biggest reason they get in trouble with HM loans. They underestimate the difficulty of getting the refi and are stuck with the HML long term. HML should not be long term funding. You need to really investigate the possibility and requirements for refi before entering the HM deal.

Good Job!
Eric

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Originally posted by Kristian Peter:

Bill, I guess that you are right, and that is why the attorneys have negotiators that handle the entire Short Sale, and close them at a 94% clip. The negotiators are in the attorneys office and get paid via the attorney fee from the lender. Is your negotiator getting more than 90% approvals, and how much are you paying them?

I'm sold on the fact that you get legal representation for the seller, and it is at no cost to anyone, but the lender. I am a real estate broker, and have paid $1500+ to get short sales negotiated with no legal representation for the seller. This just seems like a better alternative.

I would also question the 94% success rate but maybe they are doing a great job,
I don't particularly love the spin that no is paying the fees except the lender.
In reality the lender isn't paying any of the fees. The B buyer is paying them all. The lender has a net total that they need to end up with and they are going to end up with that net $ or more no matter how the deal is structured.
In a deal where the Lender must net 100K, the purchase price could be $110K if there are 10K in fees or 120K if there are 20K in fees, the lender doesn't care (within reason) because it doesn't affect them. The only person who is affected by whether the purchase price is 120K or 110K is the investor. That extra 10K in fees is coming right from his spread when he goes to resell the property.

So these guys might be great but don't be fooled about who is paying their fee.

Eric

1 Vote

Able Title in Chicago has done them as well.

Good Luck,
Eric

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Yes, many title companies are wary of flips but some will do them. Make some calls and find one that understands them and ask them their exact requirements in advance of finding the C buyer so you know how to structure the contracts.

Good Luck
Eric

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Oh, and what if you don't find a buyer?

That is life. You do your best but if you don't find a buyer then you can bet that your short sale deal wasn't that great to begin with so you move on or try to ask for a lower price.
There isn't much you can do to protect the seller. When they sign with you, they are making a bet that you will get the job done. They won't always win that bet, but if you do win a SS approval from their lender at least they know what the bank will accept and the groundwork is laid for the next person to try.

Good Luck.

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How would the lender know the POF letter is from a "transactional lender"? Most of us do lots of different types of lending and in my POF letters I don't say anything about transactional funding. "Transactional" is just a name that someone came up with for a particular type of private money. It is funding. That is all they care about.
However, you do have to make sure you are disclosing up front that you intend to resell for a profit immediately.

Originally posted by Jeff Z:

After many starts and stops trying to get started in some area of real estate investing, I finally have calls starting to come in from a direct mail campaign. Problems is that I have many serious questions, and while I don't mind telling someone that I don't know, that I can find out and get back to them, I think you can only say that you don't know so many times in a single conversation before you appear to know very little.

So without making this too long, perhaps someone with more experience can lend some advice or answers.

Two biggest questions I have:

#1. What happens if I get through the entire short sale process, the bank approves the price, the seller is on board, and I just don't find a buyer? There's no question that it would be from a lack of marketing effort, as I'm sure I'm going to go far out of my way to get my first deal done so I can move on. Surely this must happen though. If a buyer doesn't materialize, then what? What happens to the seller? How do I protect them?

#2. What happens if the bank doesn't accept proof of funds from a transactional lender? I've heard it happens from time to time, and I do not have a backup plan here.

I am most afraid of convincing a distressed seller that I've come along to help them only to have the entire deal fall apart and them suffer further consequences. Any helps or ideas are most appreciated.

1 Vote

All Forum Posts by: Eric M.

Eric M. has started 72 posts and replied 1510 times.

Post: HML actions in case of default

Post: Questions about negotiator

Post: Web Short Sale

Post: chicagoland contractors

Post: hard money success story

Post: Web Short Sale

Post: Reo Wholesaler ( Chicago)

Post: Short Sale Flip -Transactional funding

Post: Calls are coming in and I still have serious questions.

Post: Calls are coming in and I still have serious questions.