All Forum Posts by: Cody Krecicki

I work full time in the internet marketing space arbitraging clicks between exchanges in an essence I don't spend any money because it's all on the suppliers credit and if any clicks result in fraud I can chargeback the supplier for the clicks. This is a rare opportunity to find pure arbitrage where you have no price risk an risk none of your actual capital because I'm also buy and selling simultaneously.

If your unfamiliar with the concept read here http://people.stern.nyu.edu/adamodar/pdfiles/invph...

A lot of opportunity in financial markets also exists even not trading between exchanges chasing price variances. 

I'm newly getting into real estate. Are their any concepts out their for arbitraging anything? In stored commodities you can make money off a simple difference in commodity pricing due to a higher or lower cost to hold the good on inventory. 

Maybe this is possible holding a loan at say 4% interest and charging rent of what would be 8% interest without actually having to put any money up for a loan based on collateral for a property? 

Maybe even going as far as listing things in different countries for the same price and looking for currency differences in pricing models? Are their any exchanges where you can trade real estate derivatives to capture price variations outside the stock market? 

Maybe brokering mortgages could work if your buying and selling simultaneously. 

Lets hear your creative arbitrage ideas for real estate.

You must have to have a proof of funds letter to do the sale of an REO bank owned. You have to put in a purchase agreement for 45 days or so and if you don't deposit the money you risk an earnest deposit unless you can weasel your way out of it if your buyer falls through and you don't actually want to buy it.

The bank also has to make a signature on your assignee letter you have your buyer sign. Otherwise your buyer can go around you.

Also, most banks give the REOs to a trustee sale company who assigns it to a realtor. Sometimes realtors can get these direct listing from the bank. 

Buying my first note as we speak. Thanks for the information. Copy and pasting a lot of it over.

Say I have a mortgage note with the unpaid balance of $50,000 and then original balance of $52,000 that is now nonperforming note also called nonaccrual being in over a year unpaid. 

Say I write that off against my capital gains taxes from other income. After I write off the bad debt and notify the IRS. What happens to the mortgaged property that has been vacant for a long while I've written off.

Say that there are over $6000 in taxes owed from the state on the property. I plan on redeeming that and putting it on the balance of the mortgage note.

Also say the mortgage barrower is on UN-contactable.

Diana, that's great. I accepted your colleague request. We're moving to a new house right now and selling a business. We'll be in a good position here to speak soon. I haven't heard back from the seller and I'm working on getting a few notes under contract so I can assign them to another investor. Thanks a lot for following up on this thread. Great information. 

I am in Internet marketing for a living and everything is Internet marketing. 

Bob, thank you for this solid advice. The detective I was thinking about earlier, thanks for the reaffirmation. 

It's a state lax lien on the cook county site. They haven't had auctions the past few years so it hasn't gone to sale. I checked the title, looks good outside 2014-2015 taxes. I'm going to pass this paper off to an attorney knowing it's an attorney state. Does anyone have a contact that'd like to take my money?

@Jay Hinrichs your 100% right and I take no offense. My strategy in every venture I've made a killing in is ask every question that comes to mind no matter how stupid because you'll eventually have all the information. I'm just trying to save wages where I can do the work myself for more profits.

I've got $20,000 set a side for the project but I'm going to do like you said and call an attorney in IL to answer my question on the expedited 90-120 days on properties that are vacant before I sign the purchase agreements.

Thanks for all the back and forth. No better way then to hit the ground running. You can lose money easier but you get into the flow a lot quicker with cheap lessons.

The reason I asked about renting it out is the HOA liens here in Nevada are super liens and allow you to rent out the house until foreclosure.

I've been reading about a lot of note strategies. Say it's vacant, as the 1st lien holder I can do like you said and change the locks out. Can I rent it out at that point? Also, am I allowed to pay the taxes on the property as the note holder or does this vary state to state.