All Forum Posts by: Mark Gibbs

Hey Jesse-

I'll be the first to chime in, if the numbers don't work then you need to ask yourself what is the upside that you are seeing that the current owners are missing and do you have the financial horsepower to get there by yourself or with your partners. I think a lot of sellers have unrealistic expectations as to what their property is worth (I.e maintenance as equity). It sounds like you are doing a great job attempting to educate them, maybe they will see the light. If they don't though be prepared to walk. You might have a vision for the place but there is nothing worse than owning a property, having a vision but not being able to execute it due to lack of capital or the need to deal with problem after problem of deferred maintenance. Good luck.

It looks like you are paying .85 on the dollar for a second position note. Never mind the arrears, that's not a great deal and as someone else said what's the position on the first. It this person doesn't complete the payment plan you could easily be wiped out.

@Mitch Messer and @Rick Baggenstoss, thank you for your replies. I was able to make contact with an attorney I have worked with in the past to get the loan modification written. I'll keep your contact information handy in the event I am in need of help in the future. 

Looking for a Georgia Attorney that can help me with a loan modification. I've been working with a couple of attorneys that seemed to have dried up and blown away. I'm hesitant to just google an attorney that may have limited experience in the area. I have a second lien loan that I am in discussions with the borrower to do a loan modification. I've proposed terms and the borrower is in agreement. I just want a properly written loan modification, I'm tempted to just write this myself if I can't find an attorney. Any suggestions? Does anyone draft these without the assistance of an attorney?

Thank you for the insights @David Choe. This is the route we are planning to go.

@Mike Hartzog Thanks for the feedback Mike. So to make sure I am on the same page with your two step program. We put the forbearance agreement into place, homeowner makes payments for 12 months, then we create a formal loan modification that is recorded against the property?

I have been working a loan in Georgia for 5 months and the borrower has finally come to terms with the fact that the lien on her property is indeed intact and needs to be addressed. We have filed for foreclosure and the auction is scheduled for the first week in January. She has sent in an initial payment and would like to reinstate her loan by paying $300 per month until the lien is satisfied. The loan had a maturity date of 12/5/16. My question is what is the best course of action on the loan? Her payment plan is adequate for me. I can have the attorney draft up an agreement for repayment and have the loan reset which would probably cost less than having a new loan originated. BP community, what would you do?

Bil the heating oil cost to the units on a proportional basis by square footage and leave it at that. Just because someone isn't home for two weeks doesn't mean they are going to turn down the heat, especially if they aren't paying for it. 

And maybe I'm confused but if you are adding a new furnace they are still drawing off of the same oil tank how would you split the cost of the oil?

@tim holmes is right, the remaining unit will be oversized. A split unit will be better.

Kristopher-

@JD Martin posted some great advice along with others who encouraged you to get out network with people. Everyone gets nervous, especially when you are doing your first deals. Take the emotion out as others have said, run the numbers, don't purchase just to get a deal done. And for me my biggest lesson, plan out your exit strategies. Can you flip it, rent it and cash flow or something else it things go south. Good luck!

I would love to get some feedback on this for some suggestions as to what you would do differently the next time. I found a commercial property land deal that I contacted the listing agent on. Got the basics, ran the numbers, went and looked at the property and this was a definite go. I asked the listing agent if the seller might do owner financing. He said they might, send me what you are thinking and I'll run it by them. Long story short I have been hounding this agent via phone for two weeks. Saying lets just get this written. I keep getting a lot of, 'Having a hard time getting in touch with the seller', 'What was your offer' 'I'll check and get back to you...' I reach the agent today and he tells me the property is under contract. When I ask him why he wouldn't write the deal he is silent. I told him I could have brought my own agent but I was giving him the opportunity to double end the deal. He gives me this ******** story about, I told you they didn't want to finance, I reminded him that I offered to go cash, again he is silent then he says 'I thought you were an agent'.  So to avoid burning a possible bridge, I just say if the deal falls apart give me a call, I'm ready to buy. I wanted to throttle this guy. The only thing I can think of now is to send a letter to the property owner offering cash for the property. 

What would you do differently?