All Forum Posts by: Greg K.

I'm currently communicating with a local large bank, hoping to get a loan to payoff a current terrible mortgage on my house, rehab, and probably flip.  What I like about this bank is that once I got on the phone with someone in the Business Development department, I felt like it was an exciting brainstorm sessions in this exact section of bigger pockets.  We were both bouncing ideas back and forth on ways to make my situation work.

So the ARV absolutely got their attention. But I have close to nothing to offer as collateral, and no liquidity for a down payment.

I would search for an answer to this question if I could think of the right way to phrase it in a search string, it's probably a stupid question, but here goes:

Would it be possible to offer something MORE secure, thus making lending to me less risky, than merely allowing them to become the 1st position lien holder?

For example:  Allow them, or some sort of escrow or land trust, to hold the deed as collateral?  Like one would do when buying a car?

Or what about some super binding contract like a P&S or Mortgage Note, but one where I wave the right to dispute anything.

I would have a lot of hesitation offering this to a private hard money lender.  But this is a large bank that operates under all of the large bank regulations.  Thanks in advance.

@Mike Burkett

"You can get a proof of funds letter based on your experience, credit score, and amount of cash you have available. I've never seen a seller reject one. It is a very quick pre-approval process. PM me if you want some additional details."

Sorry if this is a faux pas request.  But any chance you would share these "additional" details openly in the forum?

BTW, why do so many RE professionals, ESPECIALLY private/hard lenders, always want to 'continue over PM'?

Just curious. 

I've only read about 1000 posts out of the millions on this site.  This is the best so far.  It's amusing how the content of OP's opening post is normally flame-bait.  But I see now that this is mostly because of the scummy or entitled attitude that often correlates with such "How do I get everything for nothing.  Please do it for me" Posts. 

But OP is not one of these people at all, is he?  The tone between the lines glows of true wanderlusting entrepreneurial spirit.  More importantly, it's joyfull and positive.  Not schemy, demanding, critical, or preachy.

The responses are pure gold. I'm going on 2 years of reading, experimenting, and almost getting scammed, and I've learned a wee bit about REI. No profit to show yet, either.

OP:   "No steady income, no assets, no credit, no-cosigner, no large cash reserve or experience"

Is this because in real life you are so charming, that you've literally been able to get by on your charm?

Probably going to meet-ups or leveraging radically powerful social skills will land you an equally adventurous, but inversely experienced investor/mentor.

-source = same boat(ish)

I have a family owned 2 family in Somerville, 02143.  Foreclosure Auction is scheduled 11 days from today.  Thorough research indicates a substantial return on rehabbing and selling as condos.  Need a hard money loan ASAP to pay off lien holder.  Need a general contractor to substantiate the reliability of the loan.  Will be grateful for referral or PM.

Everyone:   Wow.  I should have posted a long time ago, this is a beautiful community.

According to an attorney there is a second mortgage/lien for around 100K, and she said it's possible the holder of that loan won't try to  collect or enforce their lien.  But other evidence seems to suggest that they were in fact rolled into one trust(?), as county registry of deeds suggests.   Please stand by and I will gladly respond to each comment/question.

Thank you!

@Ron S.  Your advice is much appreciated.  My research corroborates that challenging the existence of the note would be frivolous.   And you're absolutely right, just because the mortgage may have been a bad deal does not make it fraudulent.  I'm trying to look at the situation as an entrepreneur, not as a victim.

Sorry for any misunderstanding, I have no reason to believe the loan is fraudulent.  I brought up WMC in context of mere conjecture, not opinion, and certainly not fact. 

Thank you, also for crunching the figures.  It's definitely my unclear wording that's at fault here.

No millions here, just thousands in K:

$475K = Loan servicer approved a short sale for this amount.

$890K = Value if the property were in excellent condition.

$700K = Multiple parties are arriving at this number as their bid.  

$580K = Loan servicer hired a 3rd party to perform BPO for short sale.  Report was provided with this figure, by the loan servicer.

I appreciate the information regarding foreclosure lawsuits and bankruptcy law.  Interestingly, it contradicts the explicit words of an attorney that was hired with retainer.  But what you are saying sounds more like the truth.

The statute of limitation =  this is VERY good to know.  Seriously, thank you so much.

@Tom Gimer I see.  Thank you.

Yes!!  I may be new to real estate but I'm not new to life.  The spike in property value traces to a real estate entity of supreme might and influence in these parts(Harvard University).

I am not asking to be spoonfed, but I must admit I am unfamiliar with the terms/jargon here.  Could you point me in a direction of what to research to understand this advice?   Thank you very very much!!

(Edit:  OK, so form a Joint Venture, which would protect both parties contractually.  But what do you mean by "clear the foreclosure"?)

It's because I resolved to not break any laws in this deal, that I am here today with such a long tale. Short Sale, or any real estate transaction, would require a HUD-1 and HUD, where all side deals would have to be disclosed.

The document doctoring example was meant more humorously.  But from what I've read, if that company set up the mortgage, there must have been some funny business.

Now what you're saying about the principal growing and the payoff quote being higher, I confess I know nothing about that, and that is VERY helpful advice.  I suppose I could ask the servicer directly to explain.  Or maybe that payoff quote is negotiable.  (Attorney specializing in predatory lending said that statute of limitations has expired since 2006) Thank you!

@Jon Holdman

Thank you kindly for your advice.  The thing that really sticks out for me, as a novice in this business, is the shear volume of extremely eager buyers.  It's nearly impossible to buy a property in this neighborhood right now.  At one point we were offered equity in the subsequent fix-and-flip, and the broker said he predicted that after converting the two units to condos, they should sell for 700K each, so 1.4M.  Probably exaggerating, but there's no denying that the neighborhood has a very steep appreciation curve right now.

In regards to the note option, I have two buyers that have explicitly agreed to purchase the house for the 700K in whatever way we prefer, including buying the note and giving us the difference.  Yes, the investor wants to make money on the deal.  Getting this house for 700K is a great deal, and that is the incentive. 

edit:

Writing all of this out and all of your responses have my gears turning. Solution #5 would be if I could obtain an investment loan that would cover the purchase of the note, which would make me the new lendor, AND a rehab of the property. THEN we would sell it on MLS. That would be , i suspect, the most lucrative of all the approaches.

@Jay Hinrichs

Thank you for the advice.  MA does not have redemption rights.  Once someone wins the auction, they hold the deed, freshly cleared of any liens, etc.  And we would become tenants at will.  Which sure, would be a very arduous process to evict us.  But I sort of imagine the people that come to foreclosure auctions around here, to have already done enough drive by's and stake outs to know that the house is occupied. Thus, wouldn't bother bidding at the auction.   And I actually don't feel comfortable abusing the law for free rent from a person in the flesh.  However if she files bankruptcy she gets a 5 year stay on the foreclosure.

But we don't want to live here anymore.  If only there was some way to leverage these extreme benefits to a strike a deal.

@Cara Lonsdale

Thank you for replying.  Indeed I wrote a 'cliff note' version of the story.  The $651K I'm reading directly of the mortgage servicer's monthly statement.  It's a sum of an interest bearing balance and a deferred balance.  But $651 would not satisfy the loan and release the lien, as there is a prepayment penalty, and I have a faxed official pay off quote from them that's in the mid 700K's.

The attorney who arranged the modification has not returned my calls, so I'm really not sure how the principal grew, but I'm guessing it is indeed a penalty, or related to the terrible terms of the mortgage.

So indeed, if there was an overage, it would likely be a small amount of money.

I appreciate your suggestion, but that would yield something like 10 - 20K, but I'm still pretty sure there is a way to net 200K - 400K if structured properly.  The bank was willing to accept a payoff from someone else of $480K, so there must be a hidden gem here.....