All Forum Posts by: Jay Feldman

Should have said debt "negotiator" not collector. I could not figure out how to edit my "quick reply"

A number of states have passed new laws that prohibit anyone other then a Realtor, attorney or a LICENSED debt collector form negotiating short sales for a 3rd party. I have heard contradictory statements regarding doing this if you are not receiving a fee. Possibly like when you would negotiate a property you would be buying for your self. I looked into getting licensed and it is way to burdensome to do it for a one or two person outfit. Just my 2 cents.

DON"T DO IT!
You are asking for trouble.

Ask 10 lawyers (who understand short sales) My guess is all of them will tell you not to do it.

Not sure if this is the correct term but I think it may be called equity skimming.

Has anyone used a "Commercial Equity Line of Credit" (CELOC?) to refi a group of properties? My thoughts were to have the current commercial (Hard money) mortgage liens released prior to getting an CELOC. I know the hard money lender well enough that I think he would do this to make this happen. Without a long story I would like to use a low doc/no doc/stated (if possible) product. From searching Google I see a bunch of sites saying this is available. (I am guessing Commercial lenders can still do this) Can anyone add what they might know about this? I have (3) three families (all adjoining) and a 2 family about 3 blocks away. They have all had gut rehabs, are rented and I have owned them more then a year. All have HM loans on them which I want to replace with lower interest loans (line of credit) and cash out some $$ as well. @ 70% LTV it might work for me but 75%-80% would be much better. It appears the banks/brokers want the property to be "free and clear" IE: the reason to have the liens removed. I would disclose what and why I would be doing this to the lender.

Please advise.

Bill has it right. Your investor who told you 10% probably has a bias not to do short sales. The most important thing is like any other sales transaction you need to qualify your seller. Once you learn that there is no reason why (if everybody involved knows what they are doing) you cannot close 50% or more of the deals. It would not surprise me if only 10% (or less) of the SS leads you find make sense to work deals with.

I agree. No disrespect but this format sucks! Please go back to the older styler. it was much more intuitive and user friendly
Thanks
Jay

Connecticut has a similar law

I am not saying I agree with the banks but I am saying what I think the reality of this is. I know we all want to make a profit. But the bottom line is what the law is and it is my understanding that the "law" is if you are negotiating a deal and you have a SIGNED contract for a higher offer it does not matter if the closings are back to back or a month apart. The Feds will consider it fraud. I believe there was a case here in CT (Bridgeport I think) that was based on this same scenario. I have purchased a lot of short sales. But I have always rehabbed them and signed the deal after I own it. Unfortunately it is getting harder and harder to make an honest profit.

you can do it either way buy tiling before always looks cleaner and more professional. (No grout line at the cabinet.) Also there are a number of ways to fasten the cabinets down to the floor.
Good luck

It would be nice to meet up with any investors in the Southeastern or Eastern CT area. I do mostly buy, rehab, and sell or (if multi) hold. I have also done some wholesaling. Started in mid 07 and have done about 18 rehabs. I have many years of home building and remodeling experience. I am always looking for new and better ways in all areas of the business. I have successfully negotiated and purchased many short sales. Let’s get together and see how we can help each other. I am a member of two of the local REIA's already.