All Forum Posts by: Gardy Saturne

To be honest I don't see much of a downside here. You'd have to sign and that includes a personal guarantee, but it's a business venture and it's hard money. I've never heard of a hard money lender going after anything other than the property in the event of a default and since it's a business endeavor I don't see it affecting your personal credit, but you might want to ask around and get more opinions to ensure that's the case.

@Gardy Saturne, The only downside to this is... What if it doesn't go as planned? What if he can't refi you out? What if he tries to fire sale the property at a loss? Do you share in that loss?

The upside looks good. Just makes sure the downside is covered as well.

I used to do a ton of this at least 200 of these deals .. but then our great state made it illegal to do foreclosure rescue lease back in any manner and on top of that if you sell the home within 2 years you have to give 80% of any profit to those you bought it from.. 

What this did was create a situation were ONE people broke the law .. since they did not know the laws this happens all the time just like wholesaling our state is pretty much illegal if you market a property you don't own but it happens every day.. We were far to big to take on the liability of breaking those laws. So play the cards your dealt.. foreclosure rescue is a nice niche served me well when it was legal here. However side note Much easier said than done.. I had a crew of 6 who door knocked every NOD in my 2 mil metro market and this resulted in 1 maybe 3 deals a month or about 30 a year on average.. 99% of those in foreclosure are in serious denial.. or the lender cuts a deal or someone buys it out from under you.. its a lot of leg work that as individuals if you don't have teams pretty tough.. you could nail one now and again but we were looking for scale.

I used to do a ton of this at least 200 of these deals .. but then our great state made it illegal to do foreclosure rescue lease back in any manner and on top of that if you sell the home within 2 years you have to give 80% of any profit to those you bought it from.. 

What this did was create a situation were ONE people broke the law .. since they did not know the laws this happens all the time just like wholesaling our state is pretty much illegal if you market a property you don't own but it happens every day.. We were far to big to take on the liability of breaking those laws. So play the cards your dealt.. foreclosure rescue is a nice niche served me well when it was legal here. However side note Much easier said than done.. I had a crew of 6 who door knocked every NOD in my 2 mil metro market and this resulted in 1 maybe 3 deals a month or about 30 a year on average.. 99% of those in foreclosure are in serious denial.. or the lender cuts a deal or someone buys it out from under you.. its a lot of leg work that as individuals if you don't have teams pretty tough.. you could nail one now and again but we were looking for scale.

 Thanks for the insight. Someone suggested Doorknocking as a marketing technique for me. 
How has your team handle any negative objections ? 

@Gardy Saturne because the sellers have to organize a new place to go to and get moved AND because they are about to be foreclosed on, the bank doesn't want to wait for them to move so I am going to close first and lease back the property to them on a free Use & Occupancy Agreement so they can stay for free. They have been personally vetted by me and have no reason to holdover as I am paying more than they own the bank so they can have money to move as well. So I will close and then let them move and then renovate. In most cases you would do this for a fee, but it didn't make sense in this context for me.