All Forum Posts by: Hattie Dizmond

@BrandonLuke

@Gary Dashney

Thank you both!  I appreciate the encouragement.  I try to be upfront and transparent in everything I do, because I do like to sleep well at night!

Gerry,

Welcome!  Not only have you not broken any rules, you actually abided by one, since they ask that we newbies post an introduction.  DFW is a great market for sales.  Deals are tougher to find right now, but they are there.  Good luck!

Hattie

I won't comment on the option of selling the judgment.  However, your best course of action to actually get you paid is to submit it to at least 2 of the major credit reporting agencies.  Having past landlord claims on your credit report makes it difficult to get approved for future rentals, if credit reports are filed.  However, they can dispute it with the credit reporting agency and potentially have it removed. 

Originally posted by @Kevin Romines:

Hey Hattie

We all do things in this business that we learn from. I generally agree with these guys comments, however, you are where you are, so lets solve the problem. You can get a POF from a transactional funder, but in order to do so you must have your end buyer in place and they will want specific details of the transaction and your end buyer. The lender will not allow you to wholesale, so you will need to take title and do a double escrow using the transactional funders money, then selling to your end buyer all on the same day.

I havent done this, however I have read that some guys will write the offer in an entity's name and just sell the stock of the entity to the person who is buying from you. In doing this, the lender doesnt know that you have actually wholesaled the deal because the entity (LLC, or S-Corp) is still closing on the deal. You just accomplished this by selling the entity that holds a purchase contract as an asset or a right to complete the purchase.

Thank you Kevin. That's very helpful. I have shied away from REOs to this point, and I am reminded why. I do have buyers, but I also do try to not waste their time, until I have a contract in place. Lesson learned...order of operation changes, if I decide to pursue another REO.

Thanks again!

Hattie

Originally posted by @Martin Scherer:

Personal opinion, don't write offers if you cannot close the deal yourself.  You are tying up someones property, This isn't a game . It's a business and  should be treated like a business.  

Signing a purchase agreement is just that; it is a statement you intend to close on the property and have the ability to do so not "I am trying something I read about online and don't have two nickels to rub together and I sure hope I can find a buyer", transaction.

You will find many here who will argue that point and don't agree but you are being disingenuous if you sign without the intent to close.  Now if you actually have a buyer ready willing and able thats different.  Nothing wrong with wholesaling but have your buyers before you tie the proper up.

On the rare occasion I am a seller I will not accept a cash offer unless it is accompanied by a POF from a local bank. Not to offend you and you should ask about anything you don't understand here but You should already know the answer to your question before you tie a sellers property up. Too many people tying up desperate sellers with no end buyers and no understanding why that is wrong to do.

For the record...I am entirely transparent with every conversation I have and every deal I attempt.  I don't feel there is anything disingenuous about putting a contract on a home, when there is enough margin to ensure the deal can be sold to one of my investor buyers.  However, I also protect my buyers and don't waste their time having them look at deals I don't have under contract.

I also don't appreciate you suggesting I am treating this as a "game".  I am not a child.  I've been in corporate leadership for 25 years and know what business is.  I take this very seriously.  However, I am learning a new business.  Mistakes are part of life and the rate of mistakes increases anytime we undertake a new venture.  I asked an honest, legitimate question seeking advice from more experienced investors.  I didn't ask for a lecture from someone making assumptions about my personal motives or financial condition

To the rest of you, thank you for your input and guidance.

North Texas Real Estate Information Systems (NTREIS)

Monthly Market Trend Analysis reports...free

http://www.ntreis.net/resources/statistics.asp

Also...Texas A&M Real Estate Center...great stuff

http://recenter.tamu.edu/

I don't know who your mortgage guy is, but I'm pretty sure he isn't the only mortgage guy around!! Not saying anyone else will give you a different answer, but your chances go up significantly working with smaller, local, portfolio lenders who have their own underwriting standards and a great deal of leeway on qualifications. Also, Seller Financed may be a good option, if you can't get qualified on any of the traditional routes.

I wrote an offer on a property in Richardson, TX today. It's an REO, but the bank is taking all offers. Mine is the first written contract they have received. I offered about 65% of a very conservative ARV - rehab. The house is in good condition as is, and it's in a great location. Here's my quandary... They are asking for Proof of Funds. I'm wholesaling. I don't have POF, because I never planned to close on the property myself. Suggestions? How do I handle this? I'm sure several of you are LOL right now and that's ok. But, when you stop laughing, could you please explain to me how I should have handled this and what I can do now? Thank you!

Originally posted by @Aaron Nelson:

@Brian Gibbons and @Hattie Dizmond So just curious do you think it would make a difference that the buyer is actually himself a real estate broker? It seems it would be hard to bring a case against me since the buyer should know full well what he is getting involved in and he has been buying and selling properties/notes for 8 years.... but maybe that would not have any bearing?

His role or what he does/should know won't have any bearing under Dodd-Frank.  The burden is on you as the Note holder to ensure you're in compliance.

Also under Dodd-Frank you are no longer allowed to have balloon payments, so I'm not sure you can structure it with a required cash out in a fixed term, particularly if that term is less than 5 years.  That would generally be considered a balloon payment on the 2nd and would put the primary in jeopardy of being so designated. 

Doing something this complicated, if you're committed to doing it, would definitely be the time to employ an RMLO to ensure compliance.  In addition to the general terms of Dodd-Frank, Cali likely instituted it's own rules and disclosure requirements to ensure compliance with the Act.