All Forum Posts by: Jim Stanley

Thanks, Victor.

I have met the people in person, and it's a fairly large, established lender operating in multiple states.  Yours sounds good, but I'd be a little leery of putting all my eggs in the one basket.  With the fund I used, they had a month where they had a few defaults, the return was a bit lower, and they sent out an email apologizing for the lower yield.  No big deal, but it would have been if I owned one of the defaulting notes.

I have twice invested $50k with my hard money lender's investment fund. 

I gave them $50k and they lent it out to flippers to make a profit and paid me interest on it.  It worked out fine, though each time I got a little less than advertised interest rate (about 9% vs 10%) and I had to send a reminder email to to get my money back, but I did get it back.

I ask about others' experience, because I'm still not 100% sure it's not a ponzi.  Sure they paid me both times, but that's exactly what a ponzi would do.

Thanks

Sorry for late follow up.

Total repair was under $3k so I just ate it.  Not worth the hassle/risk to claim.

My rental condo in Asheville, NC was spared damage from the flood, but when the city finally turned the water back on a few days ago, they somehow overpressurized and blew out a fitting inside a wall.  My property manager called (I live in Denver) and told me they got it turned off pretty quickly, but a whole wall's worth of drywall was damaged.  He got the drywall out. I told him to pull out everything that might have gotten wet, get everything dry (to prevent mold), and make sure it was done right.  I don't yet have an estimate on cost.

I've never used insurance for something like this because A) I've never had an expensive repair and B) I fix most stuff myself on my Denver units.

Question is: Should I file a claim or will the insurance company raise my rates so much that it makes it not worth it. For what it's worth, this condo is technically owned by the the trust established by my Self Directed IRA.

Thanks!

I did talk to my lawyer-friend who has done quite a bit of RE transactions. 

He said to definitely use a title company and pay extra for them to research any other outstanding debts as well as contact the lender.  He said contacting the lender is critical because the sale can only go through if they permit it  And they may have additional fees. 

I am trying to find the total amount owed on the county public trustee site but have been unsuccessful.  Will call them in morning.

He said he has seen sales like this where the seller's friend placed a fake lien on the property at the last minute in an effort to get some money back.

I have only bought 2 ways- MLS and through wholesalers so this is my first experience with pre-foreclosure. I want to be sure I will get full clear title (ownership) of the house and not get burned by an outstanding lien or something. I also want to do right by the seller.

My realtor introduced me to one of her former clients who needs to sell his house.  His story is long and complicated but the gist of it is:

He bought the house somewhat distressed in 2019 (through our mutual realtor).  He did a re-fi a bit later and the lender botched the paperwork.  He thinks that means he doesn't have to pay the lender and has not been paying.  Lender thinks otherwise of course and has initiated foreclosure.  I ran an O&E and I got:
- "notice of election and demand for sale by public trustee"  this is for about 350k and I assume is the lender whom he didn't pay
- "MERS assignment of deed of trust"  I'm not sure what this is but I think it's related to a quit claim deed where he added his wife to the deed thinking it would shield him from foreclosure.
-"notice of assessment lien" I think this is for not paying the HOA (He claims he did pay the HOA) about 3k
-"transcript of judgement"  It looks like he owes a credit union 16k

For what it is worth, he has hired a lawyer to try to get out of his debts.

Are the following assumptions correct?
-If I buy using a title company, the title company will make sure I get all debts and liens payed off and I should have no problems getting the house free and clear.
-Seller will pocket my offer minus what he owes the 3 parties listed above.  (no other penalties or anything else I'm missing)

Anything else I should be wary of?  Any other advice?
THANKS!!

My sister and I just inherited (50/50 split) our parents' house in Kettering (Suburb of Dayton), OH.   I live in Denver and she lives in Jacksonville.  She wants out quick and easy.  I want to maximize returns.

-House was not in a trust- as I understand we will need to pay taxes on gains (parents bought it for about 12k in 1969, zillow says about 150k today)

-House is not MLS-ready. It definitely needs updating and might have some minor structure issues. But it's not a disaster, for sure. I will go there next week to see it again.

-There has not been a mortgage on it since the early 1990's.

-I'm open to anything (sell outright, BRRRR, seller financing, etc), but will not be able to be very hands-on with any construction.

Any advice appreciated.