All Forum Posts by: Jason Roberts

You will make a ton more money if you can keep all the balls juggling in the air with what potentially for some, maybe not you, but for some as the past has shown is a house of cards. Those who only leverage to get doors under control and have little equity are at risk, great risk as 2009 showed.

There has to be a balance because if you're too focused on leverage and getting doors under your control and you're using all your cash to control more properties, and using your cash on your personal life and never paying down mortgages to create free and clear assets, your controlled properties may be too leveraged as the only thing you're relying on is principle pay down and appreciation to put you in a safe equity position. This is EXACTLY what happened to many in 2009, they always thought they had plenty of time on the horizon. 

Getting 100 houses under control with an average equity of 10% in them is fine as long as the market is rising, it's a disaster when things turn sour on you. If you can keep it going forever the theory is a millionaire maker, but unfortunately reality is that the United States economy is cyclical.

@Jason Roberts thanks for your inputs.

I am still confused to figure out who is the first (senior) lien holder of this property.

First Mortgage is recorded in April 2006 by Bank X 

Assignment of Mortgage (or DoT) Assignor Name: Bank X and Assignee name: Bank Y
Lis Pendens (Notice of Pendency or Notice of Default):
Recorded date July 2014

Does the above info from the title search states that Bank Y is the senior lien holder ?

@Jason Roberts mortgage lender is foreclosing the property and IRS liens are 4 times the mortgage balance and 3 times the FMV. From my understanding looking at the IRS lien amount i dont think the mortgage lender would ever pay off IRS liens.

If you can eventually buy with cash why wouldn't you? If you're in the position to put down large amounts of cash that means you have it, so unless you're keeping it under the mattress you'll need to do something with it, either invest it in the things you're most interested in - real estate or diversify it into something else - stocks... etc...

Cash is king for a reason, when we use cash we get deals that we would miss, cash give you power over your competitors in a competitive market or a very desirable property, it allows you to often get better prices (lower) on properties because sellers look at you as being guaranteed to close versus those with financing contingencies.

For everybody who talks about leveraging, there were 20 who went bankrupt in the last recession who were leveraged and believed everything would just continue to go up. Nobody got a property paid with cash foreclosed on.

Do you have experience operating in a foreign country?  LOL