All Forum Posts by: Kathie Riedel

I have set of criteria the deal must meet before I will lend. One of them is that I will only be in first position.

While working a W 2 job years ago I dabbled in lending. In one of the deals I took a second position.  I was a little too optimistic. They defaulted on the first and the bank foreclosed. I found an attorney to be sure I got my principle back. He would not take the case. There was not enough value in the property after the bank foreclosed. The attorney did not charge me for the opinion.

I learned 2 things: 1) Insist on being in first position. 2) Attorneys are good guys too.

The Hot Springs Real Investors Meetup meets once a month in Hot Springs. Go to Meetup.com and search for Hot Springs AR. Our next meeting is Nov. 21 in person at Smoken in Style or via Zoom.

If you are a private lender vs a hard money lender you should know the individual.As a private money lender I will lend or not lend based on my knowledge of the person. In these cases the value of the property is the greatest unknown. I will run a credit check if I have some doubts.

Suggest doing both the purchase and the refinance through a title company. The title company will record the documents showing the first title transfer and record the lien. On refinancing a title company will handle the same documents and procedure with the new lender for the second transfer.

I am in a similar situation. In general since I have no expenses except minor stuff I just report the interest income and pay tax. However, I did have a foreclosure and there were expenses on that. My CPA deducted those costs from the interest income. I had no separate entity.

Am sure more qualified people can add to this.

Does that mean that if the property were financed by private money or was owned free and clear that eviction could proceed as usual?

We have a Real Estate Investor's Meet up once a month in Hot Springs. Unfortunately, we are not meeting due to the covid19 pandemic. However, I can put you in contact with wholesalers who attend the meetup. PM me.

I traveled between California and Arkansas for 10 years. Summer and winter in CA. Spring and fall in AR. I now live full time in AR. I love the beauty and rural atmosphere of AR, the cheap real estate, the friendly people and cheap gas. I hate the weather. I made enough money in CA through real estate appreciation to live comfortably as a private lender in AR. The area I live (Hot Springs Village) is beautiful BUT if you are a golfer, tennis player or any other outdoor activity be prepared to sit inside for most days...too hot, too wet, too cold. 

There is plenty of opportunity in real estate here. For people with high capital gains individuals there are numerous federally designated Opportunity Zones. IMHO this seems to be the latest investment by outside money. But for slow and steady flipping and buy and hold also work. Just don't count on appreciation when you run the numbers. It is happening but slowly and unreliably.

Welcome aboard this real estate ride. If you come to Hot Springs check out our real estate investors meetup on the 3rd Sat. of the month.

Kathie Riedel

Any time.