All Forum Posts by: Mike G.

Oh, that's cool. I'll use that instead, which will keep my email inbox from getting overloaded, too!

Yeah, theoretically this should be your property now. However, if the senior loan went to foreclosure already (this happens), then my guess is that whoever bought that one at the auction will become the new owner, and you will have lost your $75k, unless someone paid more than $365k for the senior, in which case the extra money would go to you as the owner (unless there were additional junior liens, then those would get paid first). It can be complicated. Spend the money and contact a good real estate attorney.

It would be nice if there was a setting I could check to "Always monitor posts that I respond to".

Sometimes I'll make a post on a thread and forget about it, and then happen upon the thread days later to see that someone responded to my post and maybe asked me a question which I of course didn't see.

I would think that if you specified in the contract that you would return the security deposit to a specific person, and then you gave it to the other person, that it could get you into trouble if the person you were actually supposed to pay came looking for it. But, hey, I'm no attorney.

I am not lawyer, but here is my understanding of how this works. You should now own the property - unless the senior loan was also sold or will be sold in the next couple of weeks - not sure what happens then, but I would guess their purchase would supersede yours. If the senior loan was not sold at auction also, then that lien still exists against the property, and the senior note holder can foreclose on the property again. In other words, as you seem to already understand, you have to work out a deal with the senior note holder so they don't foreclose.

My advice, immediately get insurance on the property and contact an experienced real estate lawyer.

You just have to be prepared to be confused and frustrated when offering on short sales. The price can go up and down like the tides. Even when the agent says the "bank has approved the sale at this price", that apparently means give us an offer so we can consider it.

Hey, Will, let me know when you're going to be in front of the hotel so I can show up and get some free investment teaching! :)

Amy, there are many people in the position you describe. Just because you can't assume their loan, doesn't mean you can't take over their loan payments using a subject-to-mortgage purchase. That's what Bryan is saying. Maybe you already understood this, but I wanted to point it out just in case you didn't.

Hey, I'll have to try blacking out the name to see if that works!

Bryan, this is theoretical right now. I haven't actually done this or even started the process at all. I just started thinking about it after Will B's post indicating that he would pull his money out of a house he already bought so that he could use the money for another one.

My thought is that I would give a private money lender (not a hard money lender) a 1st trust deed position on the existing property, and pull out as much of my money as I could. Then, I would use my newly liquid money as proof of funds for offers on other houses. When I got a new property under contract, I would contact a private money lender (the same one or a different one, doesn't matter) to see if they were interested in the property. If not, I would at least have my own funds to close the purchase on the property. Then I could get the new property, repair it, and refinance myself out of it like I did with the last one. This is essentially what Will said he was doing, if I'm understanding him correctly.

As for proof of funds, what you are saying may be feasible and I know many people do this, but there are two things I am dealing with. One, I don't have enough private money lenders lined up yet where I can be confident that I could close the deal without using my own money (and I would really prefer not to use a hard money lender if possible, unless the spread is really good). And two, some banks that we send offers to don't even like the fact that we're using my personal bank statements as proof of funds, and I'm an owner in the company! So, while I may be able to make it fly with them if I have a letter from the bank account holder (not optimistic here), it's much easier if I don't have to worry about that. It seems difficult enough for us to get offers accepted right now without having to throw additional hurdles in the way.

Sorry for the long-winded response, just wanted to make sure you see where I'm coming from.