All Forum Posts by: Malcolm Ovenden

Thanks @Jay Hinrichs and @David Robinson!  I really appreciate your advice, and I'll definitely do some research on Ingrid Robinson and Lendinghome.  I am looking to fund several flips via lease options in the next few weeks, so if either of you can help me with getting legitimate funding I would certain appreciate it! 

 

Thanks for the advice, Kyle!  That's what I suspected.  I've heard of people paying these up front fees only to get the run around when it comes time for funding, and they never do get the funds. They even sent me a bank statement showing a balance of $13 million on deposit. Even that seems suspicious to me. Even if they had that much in cash, I find it hard to believe that it's all sitting in a bank account, and why would they feel the need to send me "proof" of funds?  Even if it's a legit bank statement that's no guarantee they would send me any of it. 

I've been approached by Prem Singh of Prem Singh & Sons, Inc. of NY about funding my flips. He is offering 100% financing at 6%, but the catch is that I have to pay a loan origination fee up front before I can get approval.  This sounds suspicious to me. Anyone have dealings with this lender?

I recently opened 2 new solo 401k accounts at RBFCU (Randolph Brooks FCU in Texas) without much trouble.  Their only requirement was that the trust adoption agreement had to be notorized. Their checking accounts are also free with no minimum depoit required and no minimum balance. They also have a phone app for doing remote deposits. 

If you're not interested in redeeming the property and selling it for more than the overbid (most money for you), some states do allow you to forgo the statutory redemption period. You'll have to contact the county and find out if that's an option and go down there and sign the documents that accelerate the redemption period. Be sure to also apply for the overage so you get what's left over from the deed sale (winning bid price minus taxes, interest, penalties, administration costs, etc.)

It depends on which state you're in.  For instance, in Texas ( a redeemable Tax Deed state) you have 2 years after a Tax Deed sale to redeem the property.  You can do that at any time by paying the all the back tax due, the penalties, and any maintenance expenses incurred by the deed purchaser.  If there's enough overage on the sale (sale price above redemption cost) you may be able to apply for them from the county and use those funds to redeem the property. The ealier you redeem the property the cheaper it will be for you. If you then want to sell the property to the deed purchaser you could contact the county for information about who the deed purchaser was and then ask them if they would still like to purchase it. 

That's great news!  Thanks for the info!

I've been trying to get a home equity loan or line of credit and have just been told by one lender that I must have made 6 payment on my first mortgage since I refinanced. I refinanced my FHA first mortgage in February to get a lower rate, but that did not allow cash out. The first payment was made on Apr 1, so this lender is telling me I have to wait until October to get a second? Is this some kind of government regulation, or are there other lenders who will still finance a HEL or HELOC?

I bought a tax lien/tax deed course/membership and attended a 3-day workshop.  I got lots of good information and although it was expensive I feel I got good value from it, and got to spend 3 days with the co-founder of the company, learning from his experience, which is priceless.  The conclusion I came to is that tax lien/tax deed investing is difficult because of the tremendous variability of the rules from county to county and state to state.  While some great deals can undoubtedly be had, I can see why many are intimidated by it and shy away, but for me this just means that there is an opportunity there for someone who is dedicated to learn it.  From what I've observed so far, there are a few knowledgeable investors doing it and a whole lot of newbies who think they know what they're doing or think they can learn it by trial and error. I'm sure it's the old 80/20 rule: 80% of the good and profitable deals are had by the 20% who are savvy investors.  The rest are just wasting their time and money.