All Forum Posts by: Harsh Dangaria

Thanks for your insights!

Hi BP community,

I have received the below offer from a lender for multi-family commercial loan. 

"

only offering a fixed interest rate for the initial five years of the loan and the best rate I can probably get is going to be in the 5.00-5.125% range for the initial five years. At the end of the initial five years there are a number of options available to you.

1. Rate converts to a variable rate of prime + .50% for the remaining term

2. Rate converts to the five year TCM rate + 3.00%, adjusting every five years.

3. Reprice the loan at whatever fixed rates are in five years. We can do this with an interest rate/maturity date amendment without having to refinance the loan.

"

I understand the 1st option. However, I don't fully understand the 2nd and 3rd option. Also, I am not sure what will be the best option for a long term buy and hold with a loan term of 20-25 years. Any help/recommendation is greatly appreciated. Thanks!!!

Hello BP... I am looking for a Property Management company for a 3 unit in Riverdale/South Chicago Area. I contacted several in the area and found DMG Realty Group to be a good option, but they are quite expensive. Any suggestions/recommendations?

Thanks

@Douglas Dowell and  @Carl Fischer    - Thanks for your input. 

Researching various sites (including many posts/forms in BP), books, etc. I have tried creating a blue print for asset protection (see the image). Does it make sense? Did I do something incorrectly? Is it an overkill? At what net worth is this no longer an overkill? and most importantly, Will it provide the best possible asset protection? (This is in addition to liability and umbrella insurance coverage policies). Also, with such structuring there is going to be added expenses (e.g. SLLC filing fee, land trust and trustee fees, foreign entity registration fee, general partner LLC registration fee, fees to CPAs/attorneys to set it up, extra costs with end of year tax filing, etc.). How much additional expense will this create as compared to owning rental properties without entity and land trust formation?

I did not find any clear info on other trusts as asset protection. Are there any advantages  with trusts such as  domestic/offshore asset protection trusts, etc.? Are they used instead of above or are they used in addition to above? How much additional expense will using a DAPT create?

I understand that I need to see experienced CPAs and attorneys. Any recommendations? I tried getting info on the fly from 2-3 attorney friends but they were not very helpful. I am sure that the collective knowledge/experience of BP members is far better. 

Thanks,

HD

Hello all

I am a owner of a HOA foreclosure property which is pending bank foreclosure process. The property was vacant and under foreclosure process for 2 years and the property taxes were paid by the mortgage company.

Few months ago I acquired the property (due to my stupidity). I am at least making some of my money back with a tenant in place until the bank completes the foreclosure process. 

Now, I have received a tax bill from the city for year 2017. The bill states that the taxes will be paid by the mortgage company. 

I just wanted to confirm that I don't have to pay the taxes. Any ideas? 

Thanks!!!

Why do the courts allow such HOA auctions to take place when it creates more financial burden to the general public?

What the point of giving the title to HOA foreclosure winners and then later take it away (assuming the banks are expected not to negotiate with new title holder of the property)?

It doesn't make any sense.

Hello BP members!

I am a newbie and have looked into RE investing for a long time.

Last week, I have purchased a home through a HOA foreclosure in FL. Based on my research on the property can the forum please provide some guidance.

Basic Info:  Purchased at auction for for ~$5000.  The property has been vacant for several months, and needs (~$10K worth) of rehabbing. There is a primary outstanding mortgage on it (unknown outstanding balance, terms, etc.). Original loan value of $163K taken out in 12/2009 with Bank of America. Since then the mortgage has been reassigned by BoA to another lender (Nationstar Mortgage). Nationstar did file a lis pendens 1 year ago for foreclosure (unknown auction date). Unknown contact detail of prior owner. No other title problems.

To be honest, I was not aware of riskiness of HOA foreclosure before getting into this. Stupidity tax. However, based on the zillow estimate the home is worth ~$170K.

My questions:

- option #1: rent it out on a month to month basis until the bank forecloses with full disclosure to the tenant. I could theoretically get my money and rehab costs back in ~ 1 year assuming it rents for $1500 per month (current market rate).  Does the bank have any obligations to inform me and the tenant on planned auction date? If so, what is the obligatory notice duration? Any good strategies to postpone auction? In case the bank or a 3rd party wins the auction, do they have to give tenant any notice before they are asked to move out? If so, what is the obligatory notice duration?

- option #2: is to assume the current mortgage under my name. How likely are the banks willing to do so? Do I have any leverage? Can I prevent the banks from going through foreclosure.The property does have equity in it (based on loan origination date of 2009 for a value lower than the current market value). I am more interested in holding this property for long term and prefer this option over the 1st option.

Is there anything else I can do? Anything else I am missing?  

Thanks,

HD