All Forum Posts by: Matthew W.

I found out the date given to me was in error, indeed the loan person was looking at the foreclosure versus last payment.  SO thankfully it drops off in July this year and not next year. 

Regardless, I am going to just wait it out and not go through the hassle of loan.  Other opportunities will come along and I will be that much stronger going in.   

 Thanks Chris, EXACTLY what i needed.  You da man. 

All good replies.   Thanks. I indeed am going to try and fix the "extended time" they tacked on (which i just found out about this morning).  And no bankruptcy, just a default on a residential loan.  The lawyer i had said to just do the foreclosure versus the short sale.  I honestly don't blame him, he was working within the legal environment at the time.

I certainly also don't blame lenders for being wary either, i deliberately took my hit to come out ahead and more than succeeded.   Trust me, considering the AMOUNT of people who lost their houses in the financial crisis, I am in a good place.   I just find it funny that an industry that makes it money by lending wont lend to someone who has more than enough proof of good credit, history, and income. 

WHAT I WOULD EXPECT...is "Yes, we will give you a HELOC, but because of your defaul you have a 12% interest rate" not, "NO" ;-)

As for the house, its $230K.  I can certainly wait, but its an off market listing i wanted to jump on - plus, as a side note to add a little personal story...the house is for my aging mother to get her settled and out of an expensive rental unit.   Yep, I am buying a house for my mom.  

I had a well though thought strategic default (under legal guidance) in 2010 on a residential RE property. Back then, the lawyer told me it would hurt me for only 3-5 years max. Well that is not the case at all, and I am damaged goods until October of 2020 - I cant refinance and can't get a HELOC. (If you wonder why its that long, blame a clerical error or the length of time it took to process). Even my broker says ...nope, laws are changed.

This is comically insane, as I literally have a verified 760+ credit score (even with the default), over 1.7 million dollars in assets ($180K of this IN CASH), own 2 rental properties, 1 of which is fully paid for, and am invested in 4 other multi family complexes.  I make $250K a YEAR.  I have DECADES of perfect credit with the exception of this default, which ironically was GOOD FINANCIAL SENSE.

.....aaaaaand I can't get a pip-squeak 100K HELOC loan - something i could pay back in 8-10 months MAX. Insane??

I want this money, because my next move WAS to use my cash and the $100K to buy another opportunity property in CASH as another rental.  But I cant get the darn loan. 

need advice!!!!    Shall i consider hard money lenders - (will they be reasonable?) OR do i just have to swallow the pill and wait it out and have to pay full cash until this BLACK mark is removed?

Yes I sold some stock.  Its a good "problem" to have, but this will add to my income and likely even put me in a higher tax bracket.    The unit has no repairs, so I guess from the sounds of it I need to take the tax hit. 

If I were to make a renovation on my rental does that cost count 1:1 against my capital gains?

Thanks good advice.   All of you.   I am leaning towards this option for sure, as I am also hoping the market continues to become more buyer side.  It seems every property in every area I am familiar with (which is a LOT of areas given my job) has a negative cash flow, so I am amazing at all the stories I read in here.   It is CLEAR i have a ton more to learn. 

My wad of cash. 

I am 46 and have saved $200K-$250K in liquid cash.  I've been saving up to get into passive income investing. I already max out my 401K, my Roth, and own 1 rental property (my previous primary) and have an emergency fund.   I now want to get to the "next level" and feel if I play my cards right (invest this wisely) I could actually get there.

But while many would be very happy in my situation, I am completely stressed out!!!  I can not afford to buy a primary home where I live (SF), or where I want to live (Los Angeles), nor does it seem to make any sense anyway if I do the math using the tools and info i found in here.   Granted I am new at this, so might be missing bigger picture stuff. 

I do NOT want to be tied up in the whims of the game of the stock market. I have a hard time trusting anyone, and available advice is often conflicting, making me even more reserved. So the way I figure I have the following options:

1) Buy 1 income property in a decent area ($500K+) somewhere and hope for the best and appreciation
2) Buy 2 properties in less ideal locations and rent them
3) Spread out the money across crowd source investing in $25K increments  (e.g. crowdstreet, realtyshare)
4) Invest in alternative investments like life settlements, bridge loans/peer to peer etc. also in $25K increments

5) WAIT.  Stay cash strong, as the market cycle is changing!

Please provide some thoughts and guidance on where I should begin.