All Forum Posts by: Rodney D.

These are great ideas!   

I'd probably backup the electronic door combination lock with a manual combination lockbox, "just in case".  If you lived far from your rental you don't want to have a customer call you at 11pm and angry that they can't access their rental.

Has anyone researched (guesstimated) what yearly occupancy rates to expect?  (factoring the price & location, of course)     Anyone have examples they can share?

I agree with Steve.  This is why we are hearing news reports of legislation to tax AirBnB rentals on a national level. 

I was thinking on doing the same thing.  Biggest question as an investor is what occupancy rate per year can you expect.  Of course it will be a matter of price and location.

Has anyone seen a feature on AirBnB or other sites to estimate occupancy rates?  After all, dont want to spend $$ buying and rehabbing a place only to have no one rent.

Thank you sir!  That helps explain the EXACT scenario I'm seeing and discussing (heatedly?) in the following thread:

http://www.biggerpockets.com/forums/41/topics/1964...

Brian, wow, lots of $$ to be carrying around!   - Thanks for the reply.

Curious tho, what happens when you bid successfully on a 2nd note/trust?  You pay off that 2nd note at the courthouse steps like you said, but do you have to pay off the 1st there too?   Do they announce the payoff?

Zaid,  I'm seeing 80% cancellations here too.  15 years in the biz and never seen em this high  - even during the last boom.

BTW, thats a good bit about the neg am loan and delinquent interest being re-capitalized.   This is exactly why I asked the question.  To see if other investors have 1) seen this and 2) could explain it.

In discussion with other investors that was mentioned but it "seemed" to be not enough to explain away a $200k-$300k increase in the note. Possible tho.

I too didn't believe that anything illegal was going on.  I know the banks/noteholders are being scrutinized after the robo-signing debacle.  Knowing that usury laws were restrictions to a lender just charging outrageous interest rates on defaulting loans, I wondered what else could be driving those severe increases?

Any other theories?

Here's why its appalling...

In an open market transaction, everyone knows the price. If, at the settlement table, the seller surprises the buyer and says the price has now increased $150,000, the buyer walks away (appalled). This is a version of what is happening when an investor (you, me, whomever) buys a 2nd note, subject to the first, then finds out, at settlement, that surprise! -- the first is $150,000 higher than what was recorded at the county. So the investor walks away right? Wrong. He looses his 10% deposit (here in VA/MD) and is legally liable for any difference in price when it is resold by the trustee weeks later.

The trustee/seller claims the investor did not perform his/her due diligence by researching the payoff of the 1st note so the trustee/seller is exempt from wrong doing.  But the investor has no avenue to obtain the payoff due to privacy laws.  Both parties do not know the final price.

I take issue because the recordation of any note/mortgage/trust has been the law since before the United States was even a country.  I've researched title back to the original land grants by the English Crown.   It has always been public information as to what anyone paid for their home (including the loan).    Not too long ago, you could call the bank/noteholder to get a payoff.  It is only recently that privacy laws expanded to curb this release of information.  This cripples purchasers of foreclosures.   I believe that the lawmakers, while well intentioned, did not take this into consideration when expanding the privacy laws.  They, most likely, as you stated, wanted to prevent "every yahoo" from knowing their mortgage.  I believe they would have even made the recordation of the mortgage private if they could.

Think of the one time purchaser who wants a home for his family.  He does his homework and finds out the recorded amount of a superior mortgage.  Bids on the second trust believing that the first mortgage is at or below the recorded value.  Wins the auction, puts his deposit down, then at settlement is surprised by the $150k bombshell.   That $30-$50k deposit loss represents an entire years salary.  Does anyone think thats "just the risk of the game"?  Later, when he starts asking how he could have avoided that bombshell, to research the payoff, its all "oops... sorry kid, no one gives that out anymore."

Whats so wrong with requiring a valid business license, or even a realtors license, in order to obtain mortgage payoff information?  It would limit the yahoos and put sensitive information where needed.

Couldn't agree more!

Brian, Leila, or Jay  - in N. Cal, do you put down a deposit, or do you have cashiers checks covering your full bid amount at the courthouse?  Do you get a Deed after payment?

Here in Virginia / Maryland its usually 10% deposit or equivalent.

I find it curious that a mortgage/note with its $$ value when originated and recorded is public information, but that amount becomes "private" the day after recordation.

It's even more appalling, when a bank sells a 2nd mortgage/note at foreclosure, subject to the first, knowing full well there is no way for a buyer to find out what the payoff of the first is.  That has GOT to be grounds for a legal action challenging  the owners right to privacy vs. a buyers need for due diligence.

Imagine buying anything, lets say a car, like that.  Owner #1 is selling his 30% share in the car.  You have to pay Owner #2 his 70% share but wait -- Owner #1 is not telling you what is owed on that share -- you just have to find out after you buy the 30% share -- could be more, could be less.  wow...

Jon, I've heard whispers of some investigation companies (websites?) who offer such services for a fee but haven't found one yet.  Wanted to see if any other investor had...

Wayne, yes it was extreme.  I believe the example I saw last week was a 2004 note/trust for $510k open up at foreclosure for a full-debt bid of $830k!  That boggles the mind - a $320k increase in 11 years.  Usury laws have to come into play at some point.   What is worrying is that I'm seeing these more and more often and can't explain it.

-R

You are assuming that the first mortgage is $350k based on the title search when it was recorded right?

How do you know that the current payoff of that first mortgage is not higher?  It probably isn't but it could be.

Good idea but how do you know the current payoff of the first?

I'm seeing payoff figures of superior notes/mortgages HIGHER than what was recorded at the courthouse when first executed.   Yet, these noteholders or the foreclosure attorneys, won't give payoff figures prior to the sale because of privacy laws.

I've posted messages on this topic on BP just now hoping someone might know of a solution.