All Forum Posts by: Jason F

Got it.

I knew that was Excels IRR formula, but honestly, I'm a little disappointed in Excel for not providing a better equation. They do not offer a way to account for monthly vs. yearly CF. So if you are calculation the IRR on an investment on a month by month basis (i.e. a note purchase) you have to do the appropriate conversions to make it a yearly rate. It's not that hard but Excel has so many bells, you would think they would add something like that.

Regardless, thanks for your reply.

That matches up with what someone else explained to me. Thanks for the info.

I was wondering because I wanted to buy a couple of notes and hold them, but I did not want someone to stop paying and declare a BK. I'm using borrowed funds to purcahse the notes, so I don't want to sit there paying my debt service for longer than 3 or so months without having an auction lined up.

Oh, okay.

Well, I know that reason for the deposit is to make sure the buyer intends on buying the property. If the buyer doesn not buy the property, than the seller keeps the deposit.

That being said, it would be kind of unethical to agree to buy a property, make promises to the sellers and then back out of the deal when you realize you don't have an end buyer. That happening is something you have to consider.

I would think to mitigate the risk of having to back out of a contract I would:

make sure your buyer list is strong
maybe line up a HML, just in case
let the sellers know as early in advance as possible that you can't close

Hope this helps. There are a lot more people on here that know more about it than I do, so you might want to wait for their answers.

I've heard several different stories concering the affects of a BK on a foreclosure. A lot of investors say to keep mentioning BK to a seller's bank to 'scare' them. It doesn't really seem like that would help. Why would a bank fear a BK enough to consider a larger shortsale?

Anyone know how long it generally will delay a foreclosure?

Well to fill out a contract you only really need $100 to submit to the title company. I would seriously consider waiting to get this started if you can't round up the $100 to put down.

You might get to a very good price with a seller and then when you ask THEM to submit the earnest money, they might ask you to leave.

I agree with getting a 800 number, even if you don't have a vanity number. What if you send a letter to someone who doesn't want to pay long distance? That could be the difference between them calling you and someone else. Why would you take that chance on such an inexpensive tool.

I have one through ringcentral as well. When I signed up a couple of years ago it was pretty basic, now there is a lot of added features.

Okay, well first of all, if anyone reads any one of those "cases of fraud" that addressed the problems with double closings and SUB2s you will quickly learn that they are all far from any normal sub2 or double closing. These news articles ALL depict large scale fraud schemes. These cases are so extensive and really have nothign to do with either.

The 'essence' of this thread is not 'is an sub2 and ethical transaction'. That is not anywhere near what was being discussed. Your...client...posted that ALL sub2's and double closings were fraud and could lead to prison time, according to his attorney. Ethics never came into the conversation. Your premise is wrong.

Regardless, I will address you statements.

You say that a Sub2 is not a legal act because the parties are not paying off the mortgage. If you are correct, the argument should stop there. You should be able to point me to some form of case law, or any law that outlines what is being done wrong. Which you do not. Instead you write,
"Both parties are running the risk of losing the property or being forced to pay the loan off in full if and when the bank enforces the due on sale clause which is present in almost every security instrument I have seen."
Well, if a Sub2 is against the law, wouldn't I run the risk of facing a more harsh punishment than this. I run the risk of having the loan called due???? OBVIOUSLY. I think we all know that this is a risk of doing a Sub2 deal. If you read the thread correctly than you would know that we are talking JAIL TIME. Do you have any case law pointing to that? I see that you posted some definitions of "Legal" and "ethics".. that doesn't really cut it for me. You advised your client that double closings and Sub2's are fraud and could lead to jail time. What did you base this off of?

So then you go into a long, draw out story, taking A LOT of time to address several different points (pretty typical) but never really answering anything. Overall we come to the fact that it is a grey area (duh!) that is hard to define and you would tell your clients not to do Sub2's. You would advise your clients to disclose everything in a deal and not do 'out of the box' deals. Thanks for that. If a client asked me if he should go bungy jumping, I would of course say no. Not to mention you never brought up double closings which Flipper claimed you said were also fraud. Conclusion, as I brought up in one of my first postings on this topic, "attorneys bring up a lot of issues but rarely come up with solutions". It's very easy for someone to sit on the sidelines and examine things that others might be doing wrong. Like I said, attorneys get paid for sitting in their offices, investors get paid for doing deals.

I thank you for PM-ing me to tell me that you posted to this thread. I wish you would have posted something that would have shined a little more light onto the subject, therefore constituting you PM-ing me to check the thread.

Everyone should read the book,

"How to win friends and influence people"

By Dale Carnegie

This is concept is the basis for the book and he illustrates it amazingly. It was published in 1936 and has sold over 15 million copies. All based on this very simple concept. People like you when you let them talk about themselves.

Hand written signs work VERY well when you are selling a property. It makes potential buyers think you decided to sell your house 'on a whim' and that you don't even have enough money for real signs.

I would think that might act against you when it comes to buying. Most sellers are relatively smart and a handwritten sign may come off as 'amatuer' to them. I don't know though.

I do know that my eye goes more towards handwritten signs on the side of the road than printed ones.

I called 10 title companies before I found one that would do a sub2. Now I use them on everything I do. They are 45 minutes away. I even had to give a seller $20 cash for gas because she said she couldn't afford to drive that entire distance to the closing.

My point is, once you find a title company that will entertain your double closings and sub2's or whatever you are doing, make sure you continue to bring your deals to them. They should be rewarded for going out of their way to help you make something work.

I would open the phone book and just start calling. Ask "Do you do double closings?". I'm sure most will say "What do you mean?" and when you explain it they will say, "No, we stay away from those". Then just move onto the next one. Don't spend the day trying to explain to them what it is. If they don't know they probably haven't done one before.

Also, a lot of attorneys issue title insurance and can do closings, rather than a large title company. Most of these guys will do stuff like that.