All Forum Posts by: Cindy Nevarez

Thanks Jon,

I am going to try to talk to some professionals about this. I've been studying some documents for the past several hours as Dan suggested, and even though they are very redundant as far as the wording...it is not clear to me what each one is representing (only a handful do I understand), and why it was filed. So I need to get that clear in my mind.

Thanks again to you both for the help.

Ok, thanks Dan. Will try to do that.

Yes, thanks Dan.

Sorry about my wrong wording....

I'm trying to find the do-it-yourself step by step procedure of writing these things up, and the step by step procedure of when to notarize, when to record...etc., etc.

Thanks Jon,

So if the Promissary note is not recorded does that make it "less" enforcable in some way?

Of course a Note is Notarized, but I like documentation, documentation, documentation.....

To me it's the only thing that helps you in court, plus when someone is borrowing from you, and they know you are documenting the heck out of everything, doesn't that tell them that certainly you will follow through with foreclosure if necessary, and that its' not just an empty "threat."

I'm asking if anyone here makes loans that are Deeds of Trust, in other words they are written up that way...as Deeds of Trust....recorded at the county as such.

In my mind when you are loaning private money in small amounts....the only way you can be protected from being in the second position (and ultimately thrown out if foreclosure occurs) to the 1st mortgage holder is to write it up as a Deed of Trust. That also makes it so [i]you[/i] can move to foreclose if necessary.

I was wondering what that structure and documentation was. I was wondering if the terms and such are similar to other types of HML.

Did I not ask the question right?

Does anyone here loan Deeds of Trust?

Pros?

Cons?

Thoughts?

Ha! Tell me about it!

I've got Realtors here saying that very thing. They are so deluding themselves.

There are very few places where one wouldn't have to worry too much; Flag, Prescott, Tempe and the Arcadia area of Phoenix. Homes in that part of Phx are selling for close to a half mill if they have been completely remodeled.

We read a report a couple of weeks ago saying to expect another drop of 18% in values here through next year. In my own neighborhood several houses are for sale in the upper 300s. One moved at 349k 6 months ago. But the others are just sitting there...some empty. A realtor did a comp for me. So I said, "If I really wanted to get out of here fast, I would price it at 275, right?"

We were thinking of renting it out but I don't think people are really wanting to be in this area anymore. In this zipcode there is a 26% vacancy now. That's even high for this time of year when the snowbirds have gone back home.

Hi Holly,

I am not an expert by any means. The only rental I've ever owned so far was a new condo in San Jose 20+ years ago. However, I have had quite a bit of experience with older homes since then. I've also been reading about this subject and talking to many people in the industry.

If I was me in your shoes...I would certainly be interested in this project as well, however, barring a major problem at inspection, I would think about the fact that the owner possibly claims low expenses due to deferred maintenance. It sounds like the building is older, and there may be a lot of things that are needing to be done, but have not. So ask yourself would you be able to replace the AC units if needed? Would you be able to deal with major plumbing issues?

Also, these gentlemen sound as if they are very old...if they were to pass on, would you be able to immediately occupy the units without major work first? Would you be able to raise the rents to cover it?

Let say they last for years and years...would you be able to raise their rent to cover the needed maintenance? Surely the roof is already due...or will be soon. My father lives in a 30+ year old building in the Ozarks of MO where the weather is not nearly as harsh as Buffalo...and he has to do his roof every 10 years.

Also, you mention there a lot of foreclosures there. Are there a lot of buildings standing around empty? Are people such as yourself coming in and buying them up? Or are they being ignored? People get nervious about living in a ghost town...esp. when they see more and more emptying out as the months go by. I know because it's happening here in AZ. We have whole neighborhoods standing empty. That's scary to a lot of folks...and they leave and don't come back unless they see some activity to improve that situation. If your gentlemen depart one way or another will the surrounding vacancies scare away other tenant prospects?

Also, are you close by? would you be able to drive there and back in a day? Surely you would have to be there during the inspections. Also, if repairs were needed do you have people to do that for you, or with you? Are they close by? Certainly you wouldn't want to be flying back and forth for a low income place like this.

Finally, I would create an exit plan contingency before closing so you would be able to verify important points like these and also the expenses and income the owner claims. I would also find out the costs of these possible problems on that particular building so I would know what I might have to put out later.

There's lots more that could be discussed, but I would think about these first.

BTW, are you including taxes and insurance in your figures? I understand some areas of NY can be high taxes...find out what they will be for the next bill. If you do lots of improvements to the building...that could raise it quite a bit too.

What exactly are you worried about?

Getting sued, or the actual harm it may cause?

I have 2 kinds of this flooring in 50% of my house. The first was put in almost 8 years ago.

Yeah....I thought that it was interesting that the 2 Texas cities listed were way down in south Texas near the border.