All Forum Posts by: Boyd McClean

If you apply for HML make sure that you have a professional looking presentation prepared with realistic estimates. I turn down 7 out of 10 apps because of sloppy and incomplete paper work.

Make the underwriters job easy by having all the facts together. If he/she has to come back

for additional information you left out they get turned off.

All of the above are good ideas. Since a note is not real estate put title in a PPT Personal Property Trust, shields ownership and trustee can sign the paper work.

@Christopher Winkler has some great suggestions in general about notes and what to look for. Always check to make sure the property backing the note is not in a flood zone. FEMA is constantly making changes and read the amendments which many people miss.

Would suggest you join the Alamo REI. They have a lot of workshops on SATX real estate. Find them on Meetup.

I just had my attorney do it. I gave her a copy of the original defaulted note along with the terms payor & I agreed for a modification. Payor signed and then recorded. That was it. Make sure your attorney knows Dodd Frank so the wording in the mod conforms.

Looking for an real estate attorney in Phoenix AZ to handle legal work concerning eviction, foreclosure and Subject 2. Any suggestions?

With Auction.com if you have been notified you are the highest bidder does not mean you will get the property. I bid on a SFD in Orange TX, was the highest bidder, yet did not get the house. Why? Because the bank selling the property decided not to sell at my offer even though Auction.com accepted it.

As for title insurance on auction property, many of the comments were very good. Learn to do your own preliminary title searches. This does not mean you do not buy title insurance but you get a handle on title issues before you buy. Does the property in question have IRS lien? Is there an EPA filing for possible contamination? Check FEMA and see if in a flood zone. Read ALL the amendments FEMA posts concerning wether or not what was at one time a no flood zone now is. This year there are many parts of the country that were flooded that were in no flood zones.

Check with local authorities where the property is located to see if building permits were pulled. If you look on a place like Zillow and find a description as 4 bedroom and the county says permits were pulled for 3 now you have an issue.

Pull the tax bill and check for owners name and run against Pacer.gov to see if in BK? There is a delay time in some counties about posting BK on title records.

Go to the courthouse and pull the file.

You can get 8% on a performing 1st lien. Put it in a IRA (self directed) and have profit tax free. Also weigh the aspect of being a absentee landlord.

Has he or she had a BK?

Is the property in a flood zone?

What is your LTV requirements?

Length of loan

Are interest payments made monthly or accrued?

@Mark Rios you are exactly right in your summation. If you go to the live class they teach  all that you mentioned, but hard sell a $10,000 mentoring program. I enjoyed the live presentation yet at the last day I got turned off with their constant rhetoric of the $10,000 program. It is ok to mention it and give the benefits but not constantly hammer you. Being a captive audience they take advantage of that.

It is a challenge to find a MLO that will agree to what you want to do. I got a email list from my State Banking Commission and emailed several hundred registered MLO folks and found many were MLO's for banks and they perceived my offer a conflict of interest.

I did find someone qualified 75 miles from my market, yet did not like his attitude so passed him by.

Since taking the class I have underwritten several small dollar amounts myself (NOO) having a real estate attorney review all paper work prior to moving forward. Having done due diligence on second non-performing notes I have all the tools and necessary data bases to do the underwriting.

One must be very much aware of changing market conditions in your area. Several hard money lenders (n my area) that go 70-80% LTV are now having challenges of large dollar loans being late in interest payments (they only held back 4 out of 6 months interest). Inventory in my area in the last 60 days has grown by a week. Something to keep your eye on.

There is definitely opportunity in this field, yet one needs to adhere to the guide lines they teach. So far I am funding one out of four.