All Forum Posts by: Hans Restuccia

Joffrey Long- fantastic forum!! I will comment on what is happing in South Florida as soon as I finish 2 closings for today.

The following is a verification for the person borrowing Hard Money- must be investment property- right??? So here is an example of language:

12. This Loan is for Investment Property – The property is not owner occupied and is purchased or owned as an investment to be held or rented. The borrower hereby confirms that he/she is a sophisticated investor, that the purpose of this loan is business purposes, and that the borrower has had time to shop for other loans, has received the costs of this loan several days ago and that this is investment property being purchased or refinanced by a business entity for a business purpose. The borrower hereby confirms that this loan is being procured with the sole intent TO PROVIDE INVESTMENT INCOME. Initial__________

What are you using?

Caveat- (This is not a request for legal advice- just a dialogue- smile)

by the way- our lending company is actually owned by an attorney and we have a law firm as well so we know to always get legal advice- but what is funny- even with that we can't figure this stuff out sometimes because we get conflicting answers in our research- (LOL!!!)- so what is being done by pros in the industry like those on this forum is most helpful- their practices and comments actually confirm our research or give us ideas to increase our compliance practices which is very important to us.

Thanks again.

Ned Carey- thank you sir for your wise words.

J Scott- thank you sir for you kind words as well- I apologize also for my reaction-

generally in Florida if there is a title defect the seller has an option to cure and has a period of time to do so- if he feels he cannot cure he can void the contract then the option swings to you- you have the right to cure and go forward and he has to sell to you or you can choose to void the contract- in this case you would void and get your deposit back.

That is what I can come up with considering the limited information i have and because I have not seen the covenants in the contract.

Jeff S- because you brought it up- even though I do not want to be short- let me help you see how you are mistaken-

we are attorney's right?

We are foreclosing on a guy who filed defensive pleadings that the loan was not a business loan and he intended this property to be his primary residence- which is the defense that we do not want to see for many reasons.

Now we put the guy on the witness stand and ask him, "is this your handwriting?" he says "YES" because we have proof it is- then we ask him to read it and he reads, "I am buying this property for investment to rehab and sell for profit."

And we say, "now you personally wrote in there your self?' he says "YES" - then we say "Then how in the world could it have been your intention that this was your primary residence when you sat there, took the pen in your hand, and actually took the time and wrote that it was investment property!!!!!"

Case over- judge will slam dunk him.

Yes- you sell for $85k- the buyer gets a loan and pays the full amount- you disburse the $60k to the original seller and you keep what is left over at closing- could all happen simultaneously depending on the title company, etc.

OIC- then you need to get your buyer in touch with a HM Lender to provide the financing. Unless he qualifies for conventional.

Hey J Scott- where did you see the word "advice" let alone a request for "advice?" My question is "what does yours say."

I am not looking for advise and we are attorney's - so what I am asking is what are lenders using for this affidavit- the purpose of which is to start a dialogue- to see what others are doing in the industry- hence a "forum." Right??? Now you are a moderator so if you think this is not a proper subject please direct me to the rules and properly demonstrate same.

Otherwise please keep your condescending comments to yourself! And please do not remove this post so I can see what others think about this matter.

you need to get your buyer in touch with local HML's- right?? then the buyer borrows the funds from HM Lender to pay you for the purchase- that would not be owner financing- if you own the property free and clear then you can sell to them, get their cash down payment and you can finance the balance. Is that what you mean???