All Forum Posts by: Account Closed

You've lost me. How are you using investor money to get a bank loan? If you have investor money, why do you NEED a bank loan? 

I can't say that I've ever heard of your scenario.

Some private money lenders want the monthly payment at 6% or so because they are getting 1.5% currently. Others don't mind if it accumulates and gets paid back at the end of the project. it is a preference question. If you can get it done in 5 months, you'll be very happy. However, even after you get an offer, it takes 30 days to close and there is no guarantee the bank won't back out at the last minute. What if the appraisal comes in low? I've had that happen. I'd make the loan for 12 months and pay it back early. You'll look like a star. Besides, your lender would rather have it lent out longer than shorter. They make more money and they don't have to buy those pesky bonds again. Suggest 6% for 12 months on a 30 year amortized note with payments made monthly as one option or if he prefers you can make it a 12 month balloon with all monies due at 12 months with no prepayment penalty. Let him decide. It's called "alternate of choice". It makes it easier for him to say "yes" to one of them

I'm in Phoenix (Scottsdale) and I do joint investing with Californians who "get it" that it is a lot easier, fewer taxes and less risky to invest just a few hours away. I keep hearing from them how hard it is to find comparable deals in So Cal. The deals in So Cal. are there if you are an accredited investor with substantial funds & if you look hard enough, but for most, the Phoenix area makes far more sense.

@Alex Velez You are using VA. Thanks for your service. I am curious why your agent isn't concerned. He's the one losing a commission that he thought he had. Perhaps your agent understands that there is no way to fight it since you don't have any money in the game. Talk to him and ask. It's likely that you just have to move on.

Common problem. I don't know of any solution.

@Hadar Orkibi Other than that you have very high taxes, compared to the USA, and your frequent earthquakes, (which doesn't bother me) NZ is highly educated, very modern, english speaking with a good economy and 1,000 miles from anywhere. Moderate temperature with majestic mountains, wonderful coastline and efficient albeit a little pricey ferry system. The folks in Wellington have a surprisingly good handle on things as compared to USA, Great Britain, Canada, Germany and France regarding immigration. There will be far fewer social problems in NZ compared to the others going forward. Nobody wants to bomb NZ 'cause "who the heck is NZ"? 

Also, if the Zombie Apocalypse occurs, it's a safe place to be.

Hi Drew, I wouldn't admit that I'm an attorney on this blog. It only means expense & risk to most people. I lived in a neighborhood of attorneys and judges; state, local and federal so nothing like that impresses me anymore. Parties were a gas. My logic and their law. (As you know, law has nothing to do with logic. It's about "the process", and double billing. I had one judge tell me at a Christmas party "everybody lies in court". That was an eye opener. ;-) Ah, but I digress, Besides, most people you buy from will think you are taking advantage of them or will suffer consequence from you if things go wrong. And, as an attorney, you know things sometimes do go wrong. 

Now, if you are talking creative real estate; If I was an attorney, or played one on late night TV, I'd probably find probate, bankruptcy, judgments & liens, divorces and 2nd mortgages to be my cup of tea. Have fun at real estate and keep us posted on your course of action. Ken

How come you don't trust your close friend that is the attorney? What am I missing?

None. Just know the laws of New Jersey and have a lawyer, escrow company and title company for the area you are investing in. You could invest in New Zealand or Canada if you wanted to. I invest in Arizona, California, Washington and Texas. I could invest other places with no concerns if I have a good real estate lawyer there.

Discussing debt with anyone other than the person who owes you money is an open invitation to a lawsuit. Don't do it. 

Send letters to the last know place of residence and use an attorney since you don't know the law in this situation, and start an eviction. I wouldn't even worry about if he still works there until you have a judgment and send the proper paperwork to the last known employer for garnishment.