All Forum Posts by: Elaine Hester

I agree with what you are all saying, so please disregard my post as I tried to delete it after the initial shock wore off that this happened, but BP does not seem to allow that. The difficulty with this particular situation was that we had a different email on file for the tenant, one that he always used in the past. And as for checking spam, HA—I can hardly keep up with the spam that ends up in my inbox, let alone to check my spam folder. That would be another full time job in itself.🤪

Our tenant text my husband today saying that he's vacating in a few days. He said he emailed us his 30-day notice to both of our personal emails two weeks ago, however neither of us received an email from him. My husband then asks him to forward the email, which he did. After seeing the exact date, I started digging through my spam folder and sure enough, there it was. I am assuming it ended up in spam as he used a different email than the one we had on file for him. At this point we are being set back two weeks as I can't get a painter and other needed contractors in there on such short notice. I'd just like to know the specifics on what California law says about this kind of situation, without having to hire an attorney as this is rather minor. Wondering if anyone has had a similar experience and how it played out!🤔

So, this is going to sound super nuts to some people, BUT... I'm actually considering buying a (2nd) property that is right smack in the center of Bloods territory. I am doing some research, and therefore came across your post (albeit a number of years later) so I thought I'd comment my experience....

Very long story short as possible; as newbie lenders back in 2019 we lended to a flipper out of Columbus who obtained by wholesale a 4BR house close to downtown and within a short walk of Nationwide Children's Hospital in an area which is going through much gentrification. The flipper, also a newbie it turns out, was so sure he was going to make a fortune off of the sale of the house with little effort, frivolously spent the money we loaned him to flip and ended up underwater and unable to sell the house for his asking price. We then acquired the house under deed in lieu and finished the remodel. Still unable to sell the house for what what we had into it, we decided to see what we could get for rent. We ended up renting to a lovely, two income couple with three small children (she works days, he works nights) who actually came from an even worse neighborhood and were grateful for the opportunity to move to a larger house in a "nicer" area. It took almost a year later and a very scary incident in which a stray bullet from a nearby shooting ended up going through the house and entered in a wall just behind our tenant's daughter's head while she sat on the couch to realize that the house was right smack in the center of Bloods territory. Had we known this from the start, we NEVER would have had ANYTHING to do with this property and would have run fast and never looked back. The couple it turns out were fully aware of the gang presence. And we learned there's even a website you can go to find out where their territories exist. It's now over a year since that incident, the rent we charge is significantly lower than nearby comps. The home equity has increased by $100K. The family is still living there, now on a month to month tenancy since our one year lease expired. They they are good people, take good care of the house, and pay their rent on time every single month. The gang members know who is, and isn't a threat and they do not bother them. The hope is of course that with gentrification, eventually (likely a number of years still down the road) the gang members will trickle out and find someplace else to do their dirty work (or even more hopeful—disappear off the face of the earth) so that decent, law-abiding, tax-(and rent) paying people can go on living their lives in peace.

Circling back to your question @Yishi Garrard, although it seams the realtors/property managers and even flippers ought to know what's going on in those areas, I am not convinced they do for the most part. A few handymen we have hired to go there do know what's going on. Some of them even carry to protect themselves. It's a mad world we live in whether we're aware or not. And very often the fringe and the fray as @Al Williamson so eloquently defined, have much overlap. You see this mostly in large cities, where one street there is much wealth and the next street, or even down the street/across the street there is deep poverty.

We are private lenders in the process of trying to take back, through DIL or foreclosure, an unoccupied SFH that is in default by the flipper/borrower. The flipper did such a poor job that the house wont sell for anywhere near the estimated ARV, then let the insurance expire. We understand the only way we can insure it is through force placed insurance. Does anyone have any recommendations for a provider of such insurance?

Sorry @Bob @Bob Willis, I just saw your post! So, in this particular case—although it sounded like a great deal, I ended up just going with my gut and did not pull the trigger as a private placement that offered similar returns that I felt a bit more strongly about came up in Montana. To this day I do not know anything about what transpired, however, I just looked it up and see that plot of land in Riverside is still vacant and still for sale, whereas the one I chose to invest in near Bozeman, MT is on track for payoff this summer. —I have learned that sometimes you just have to go with your gut!

My husband and I are about to take our RE Salesperson Exam, and one of us will choose a brokerage to hang our license while the other remains inactive. Our intention is not to become Realtors, rather we are interested in the license for investment purposes, so we do not need the bells and whistles (and expense) of the larger, big name brokerages. We are located in San Diego and will need MLS access for San Diego county. Please feel free to offer advice, or PM me with specific recommendations. Thank you!

@Michael Ealy, it appears that the loan in question may be in your state (OH) ... any particular nuances to note there?

Don’t they teach this in California public schools? LOL

@Don Konipol

LOL—It would be amazing if they even taught basic finance in public schools!

...What if the loan is for a home that is in another state—does the law for that particular state then apply rather than CA?

Ok, so it sounds like I need to instruct and verify with the title company before agreeing to lend. 

—And, if I did not do so initially, is calling the title company and asking the best way to confirm what position I am in? 

I am in California by the way if anyone happens to know if the laws are different here.

A second question is this: if a loan becomes due and the borrower is not ready to pay, but would like an extension, is there a recommended process for how to proceed (as opposed to foreclosure)? ...Is it recommended to put a clause into the contract accounting for this upfront, such as a penalty interest rate maybe—?

This sounds like a ridiculous question as I'm asking it, but I have heard of people thinking they are in 1st position when it turns out they're actually in 2nd ... since I am new to lending, I want to know what specific document or verbiage a lender would require to ensure they are in first lien position. Thanks for your help!