All Forum Posts by: Matthew W.

Hi Steven. That seems like a good problem to have. Is your concern that you don't know what investment vehicle to move it into next? Or are you concerned about tax implications? Is your focus solely on wholesaling?

@Dana Whicker, I couldn't agree more. The level of information available here is staggering. It would be very easy for people to see my question and think "Here we go again," and ignore me. However, the responses in this thread have been fantastic, and have given me much to think about.

I just finished with a live webinar about an hour ago, now I'm considering a Plus or Pro subscription.

@Dion DePaoli thank you for outlining all those details. Appreciated.

@Greg Wilkins thank you very much. I will certainly reach out to them as soon as I have something to move forward with.

@Darren Eady thanks for putting together that list, I am making note of it.

Can you please explain further why I wouldn't be able to get my equity out from a non-performing loan? Assuming that the loan is the 1st mortgage, it is purchased at a big enough discount to the property value, and I'm willing to wait through the process to acquire the property? Honest question, I'm just trying to understand every angle.

@Jay Hinrichs I don't doubt the risks. I would also rather not put all my eggs in one basket. Huge wins are great, but a lot of smaller wins are also acceptable.

@Jay Hinrichs Thanks for the advice. I agree that vacant properties are probably a better way to go, and some of these might be empty. I'm pouring through the data. 

I want to take every precaution possible to ensure that I don't make a costly mistake. At the end of the day, I do want to own properties.

@Cody Begg thanks for the info on the Podcast, I'm going to go check it out.

@Chris Garzino I don't have the actual contact, it is through a friend who does this.

In my friend's words, "You own the mortgage, you become the bank. If they don't pay you, foreclose on the property, and evict if necessary."

Hey @Greg Wilkins, this would most likely be the latter - just one or two.

Please forgive me if this post is naive. 

I have a friend who has been investing in real estate for years. Specifically, he is involved in non-performing loans in the New York and New Jersey areas.  He always has told me how he buys mortgages from the banks at a significant discount, forecloses on the property, then takes the property to auction. He makes it seem so easy.

I've been given the opportunity, through him, to review a portfolio of mortgages being offered from a bank, and to make offers on anything I find interesting - there are hundreds.

The spreadsheet I looked at had the following info:

Property Address

Foreclosure Start Date

Original Balance

Current Balance

Corp Adj

Escrow Adv

Months Dlq

So for instance, here is an example (and the properties span the tri-state area):

55 Main Street, Newark, NJ

Foreclosure Start Date: 10/17/2013

Original Balance: $350,000

Current Balance: $322,000

Corporate Adj: -$5822

Escrow Adv: -$56,918

Months Dlq: 83

He tells me that the bank will probably accept an offer of 50-60% of the current balance (Again, he has done this dozens of times.) For the owner to become current they would have to come up with $322,000 + $5822 + $56,918.  The property is probably valued around $375k. When foreclosed and brought to auction, the loan value and interest and penalties are more than the estimated property value - so I would most likely wind up with the house.

I suppose I just don't get it...what am I missing from this picture?

Please tell me why this is a terrible idea to get involved with.