All Forum Posts by: Matt Devincenzo

Do you have 9K (20-11) to loan the buyer?

One solution to prevent this from falling apart (though you will be taking a risk) is for you to not take your assignment fee in cash but to create a 2nd for that amount with a shorter term so you can get paid out later.

Not sure if I would do it but it's the only way I can think to get something done in 3 days. Or the buyer could borrow on a personal loan if they can get enough...

I don't think you're trying to be shady but if the seller is concerned about the lender finding out, and you're asking the question then....do you really need to ask the question.

I have heard about some lenders paying sellers as part of the move out, so maybe if he just flat out asks if he could get some moving money and you tell the bank you're willing to give it to him. But don't be surprised if they say no and want the higher price since you opened the door to more money.

Absolutely lock it down you can always set sale dates later, or as Tim G. described sell it and hold funds in escrow for a future move out.

It will be up to your buyer whether or not the extended holding period is worth it, but if the numbers work they won't care. And if the extended hold isn't worth it at least you have a contract so that the seller doesn't get cold feet later when you can get it sold.

Welcome to BP Tom.

I'll weigh in real quick, I too was looking for a house here in SoCal but instead decided to continue to rent. Yes I'm wasting my money on rent, but for me I've been able to invest more back home in FL where cash flow numbers make much more sense.

So I wrote something and then realized that the 2400/mo was total not per side, right? If that is the case then it's not a good deal from my perspective.

For me I'm trying to build cash flow now to continue acquiring properties not get 1 or 2 that will pay off nicely in 7-10 years when I sell. With 300K I could get somewhere around 5-8 properties that would bring in about 5000-7500/mo, but in 5 years I will probably only get another 5-10K out of each if I sold. So great cash flow not appreciation.

Some day I will probably play in that arena some just because some huge gains can be made, but it is definitely a gamble on your understanding of the market and what drives it.

If you run the numbers for what you would pay in rent and could invest in a cash flow area, or what you would get in rent and pay per month to own a duplex I bet that you will find it is cheaper to rent here and "throw away rent" than it is to buy a property. And you will find that you will grow wealth much more steadily and reliably by investing elsewhere.

UPB unpaid principal balance.

Yeah I think you'd need to be more in the 50K range to make it attractive just because you'd need to assume it will default and you'll have to take the property back.

So to build the info that more knowledgeable folks are sure to ask at some point.

What is the interest rate and payment amount per month.

Like I said I think the goal here would have to be to restructure the terms so that the balance is actually closer to what the house is worth so you mitigate the risk of them walking away.

I have no idea haha, but I'm monitoring this topic just so I can see what responses you get.

It seems that the one great thing in this deal is the sellers only owing 12K so at least that is easier to work with. My guess is you need to purchase for like 20% of the UPB and restructure the note so that the payment amount stays the same but the term and UPB is reduced then it would be marketable to a note buyer.

Again I don't really know but am extremely interested in finding out since I am just starting to look into note buying.

Sorry to hear it didn't work the way you wanted.

I do have a question though, you said you're going to lose half of the amount that was rolled over to the ROTH. Why don't you just pay the taxes outside your IRA and keep the full rollover in the ROTH. When I rolled my TSP(military version on 401K) into my pre-existing ROTH I just claimed the amount as income and paid the taxes so the rollover itself went 100% to my ROTH.

Sorry if I missed that above and you already stated why you have to distribute the funds.

What kind of timeline is she looking for?

If she is planning on moving in the next 60 days or so I'd contract and just put closing out that far. I personally would have no problem; I would have a guaranteed property in the pipeline for a later date that I don't have to put money out for right now. I have a SS I've been waiting on for over 45 days now and even if it's approved today won't close for a few more. And I have to maintain my POF in my acct until I close so I can't spend it on anything no matter how I plan on closing so for a conventional sale that I know I'm only waiting until she moves no problem.

Congrats, I'm a born and raised FL boy so even though I live in CA now and mostly because I live in CA I choose to invest in FL. Your experience with "the other side of the tracks" is exactly why I say if you won't (not that you must but it's a good idea) get on a plane don't invest remotely. I don't worry about it myself because I had 21 years living experience in the area so I know areas based on street names but others don't.

I'd call her back and ask if she's ready to be polite. Then say you wanted to make an offer but needed to understand this LLC thing in order to do so.

And no I haven't seen that but I was more focused on the "hung up on me part" haha I'd make the offer just so she had to eat crow when I'm sitting at closing purchasing with my LLC