All Forum Posts by: Kyle Clark

Thanks, Im in California. Theres been some hype in the news about foreclosure and mod counselors being scams for the past couple years, but I just thought it could become a ok supplementary service. Yes HUD has a list of them that do it for free. I have relatives who have helped people to get Mods and if they werent successful they usually got a listing. Yeah, I dont see much on the laws when I google it. With all the hype about scams, all the free services out there and other unkowns Ill probably stay away from this. If anyone has any other input though Id appreciate it.

If you were to offer a counseling service to distressed homeowners are there any licenses or approvals you need to obtain? I ask because theres been some news stories about people offering these services taking advantage of people. Also a realtor told me its illegal to profit off of people by stepping them through the loan mod process, I think perhaps thats just for realtors though...I got someone whos done dozens of these home mods if any of you are concerned, I say this because I know theres always someone who will jump on you lol...

If theres no regulation, how would I charge for the service? Just get a payment processor that can run card not present transactions and get their card number?

Thanks.

Dawn A.@Dawn Shes pushing 85 and has money. I used to live with her and have met some of her past and present tenants. A heroine addict, a person who removed their face, growers, dealers, mentally ill people, crackheads, drunks, parolees, a gay hoarder, a con artist Orthodox priest and all sorts of other low lifes. I think she enjoys creating drama for herself and playing the victim to live out some sort of soap opera lifestyle. She also routinely hires contractors then doesnt pay them after they do work for her. The security guards at the courthouse greet her by name when weve went if that tells you anything. Its her life, she can do whatever she wants. Why do you think I dont tell people in town Im related? Lol

Thats interesting, thanks guys. Im surprised with how low its worth to a debt collection agency, but I supposed tenant debt is bountiful. Most landlords I know dont bother with trying to collect and just say "you cant collect anything from people that dont have anything". This person I talk about though has been in the property management business for decades managing her properties and others. She told me she has all the papers from the past 30 years on deadbeat tenants, but doesnt do anything with them. She literally goes out of her way to pick the worst tenants, always rents to junkies and doesnt pull credit reports or anything. Like I said its entertaining to her to deal with these sorts of people lol. Even if she just got 1% of recent judgements Im sure thats a decent chunk of change. Ill maybe get some quotes and see what they say as far as % goes, this old lady always gets judgements too I think because Ive brought her to the courthouse at times.

I have family who have or who have had rentals in the past. They do nothing to collect upon the debt owed by these lowlife tenants. I wonder this because 1 relative of mine spends a fortune every time she evicts someone. She actually pays to get the sheriff out, change the locks, clean up and then $3500 to a lawyer to get a judgement that seems pointless. I think she enjoys having destructive tenants just to watch them as a form of entertainment in her later years lol. She probably wont listen, but Im just interested in knowing if its possible for her to collect on some of her MANY cases of nonpaying tenants.

Has anyone had success in collecting upon old debts?

Do you you bother calling their new residence or dinging their credit report?

Can you sell the debt to a collection agency? And for what % is typical?

Thanks everyone. I might have to go the route of 1 LLC at first, it is $800 which is expensive right now to me without a good income. I could do separate DBAs I think for them though under 1 LLC.

As for holding property, is anyone familiar with this method?It basically says to put property in a land trust and make a Nevada LLC the beneficiary.
http://clintcoons.wordpress.com/2012/05/11/for-california-investors-the-solution-may-lie-in-nevada/

Are there types of liens that wont show up in tax records, county clerk/records or title search?

Thanks Mary. I seriously think a lot of these realtors/brokers and others int he industry hear something is illegal and believe it. Just like how the general public thinks "flipping" is illegal because there is a scheme out there called flipping. I think my mom though was just trying to discourage me so Ill focus on my entirely on my career instead of researching this type of investing.

For the referrals I was referring to sending leads to family to shortsale their underwater homes. Ive seen in the paper some realtors advertising airline tickets as referral fees so perhaps theres some ways around it. I read also in one of my $0.99 Amazon books that the realtor could set up a line of credit to pay for your advertising each time you send them someone. I hear the referral fee limit is $25 to a unlicensed person, so perhaps they just limit the cash side of it now. I got to look into that.

I recently got some licenses(tax prep and notary) which I plan to put under a LLC. I just recently stumbled upon this forum and others that deal with wholesaling, lease options, buying & selling land. Whats the disadvantages of putting a mix of services under 1 LLC? Ive read you can do it if you keep the articles of incorporation vague. Id also choose a vague name such as KC Solutions or something. I ask this because LLC costs in California are ridiculous at around $800 a year each. I tried looking into Nevada LLCs, sadly that wont work like the late night radio guy says haha. From a liability standpoint is it not good? What Id off would be services without much physically owned by the business. Would it make it easier for someone to pierce the LLC and get to me should I choose to be a cheapskate?

Any buy and hold properties Id of course put under separate LLCs(maybe in groups of 3 each). For when I get them of course, Im getting ahead of myself now.

Thanks.

Been listening to some podcasts and reading some posts recently on wholesaling. While Ive learned a ton about marketing and whatnot, most of the $1 ebooks, the CDs and podcasts Ive listened too didnt go too deep into the contracts and transaction part. Thats definitely the part Im most interested in right now because I dont want any trouble and it seems like it could happen. Im in California if it matters.

Is a double close entirely safe/legal? I asked my mom who was a escrow agent for 20+ years, a loan officer and is now a broker, she said at first that it is illegal. I pressed her for more details, specifically for details about the law and she just said that you have to disclose you are making a profit. From all Ive read I think she is just trying to discourage me. I havent started looking for a friendly double-close escrow company yet, figured Id run some questions by the community here first.

Ive kind of got mixed up on the wholesaling thing because theres different methods. I think I just took too much in in a short amount of time and am still learning. Let me try to ask a couple questions and hopefully they come out smooth.

-Is there any trouble with doing double closes like mentioned above?

-For wholesaling using assignment will I be using a standard California buy contract and make it assignable then send it to the title company after the buyer signs? The seller always knows how much you are making with this method, correct?

-Ive heard of wholesaling using sub2 and lease options which sound a little more complicated. I just familiarized myself with these 2 concepts but am having a little trouble understanding if they are good for wholesaling. Sub2 I believe I heard isnt good for this because of the small risk of the lender calling the loan. As for lease options I Im supposing you just sell the option?

-California apparently passed a law not long ago that realtors cannot pay unlicensed people referral fees, is there any way around that? I mention this because I bet theres a lot of underwater sellers that I could send over to realtors in my family for shortsale.

Thank you so much should any of you answer. Hopefully someone can help me clear up some of the confusion Im having. Thanks again.