All Forum Posts by: John Mills

@Don Konipol sorry but those do pop up from time to time. 2 blocks from my house one sold for $35k and ARV was $260K

not something you find on MLS but deep digging and they do pop up

@Thomas J. idk. he owned it free/clear. guy is well off and wanted a 20K note at 8% for 2 years instead of earning nothing in the bank

@Thomas J. thats what i said. Hard money should have had no problem. Since the note for 20K wasnt going to be on the property we were buying, it should have been no brainer. Hard money was even more secure. I guess i have to find a different hard money lender. If the seller didnt want the 20k note, we would have just gotten the 100K + 15K from hard money with no problems. 

@Chaston Farris thanks. I'll check with the city and see 

@Bob Okenwa thanks! weve done that but the address the tax bill hasnt paid the taxes on the house in 3 years.

@Thomas J. thanks! we have cash (just not enough to pay him 80k) but seller, for whatever reason, only wanted 80K at close and 20K payable 24 months later. (dont know why. only assume taxes). I thought it was probably no problem but our hard money said they would pass. We lost it to a local cash buyer and he paid 80k to the guy and will be paying him the other 20K in 24 months. I figured, i had better get some education to learn why our lender wouldnt do it.

@Chaston Farris thanks. Been there, done that. No luck. Its like the owner just disappeared or died with no heirs.

does the city eventually take it?

@Fred Shatzoff thank Fred. We missed the deal so its not something we can pursue. Just trying to understand for the future. I thought it would be win/win all around. I know the second on the property is no good but since it was unsecured, I thought that was fine. 

1. Hard money lender has lower risk - only 95K instead of 115K

2. Seller gets out of the property

3. Refinancing out is easier since the hard money on the property is 20K less

@Fred Shatzoff thanks Fred. since it wasnt tied to the property, i thought it wasnt considered a second. (sorry im newbie)

If for some reason the hard money had to foreclose on it, would the 20K note come into play? The seller didnt want it tied to the property. It was basically an IOU for 20K between buyer and seller. 

@Fred Shatzoff i understand no seconds but this was a note unsecured for 20K. it wasnt going to be tied to the property