All Forum Posts by: Tim Silvers

I am familiar with the series LLC, having used it before for rental property, but what about for quick flips in which the hold time may be only 30 days or less & you're doing volume? Yes, you pay a one-time formation fee and only one annual filing fee for the master LLC, but for liability/asset protection, you STILL have to do separate operating agreements, separate dba's (that means licensing fees), separate bank accounts, separate accounting, and separate EINs for each series! I addition to these ongoing administrative fees, this also means ongoing attorney and accounting fees for each series! Most of those working flips are working pretty thin as it is.
Other than the initial setup and annual filing fees - I don't see where the series LLC would make sense for short term flips. The question is - is it really worth it to incur all these ancillary costs and paperwork for a flip?

Why not just use 1 LLC that never holds any assets - (in flipping you're in and out in a short time and all income passes through to the members anyway ) - to do all your flip deals. I cannot see it making sense to go through all this hassle to set up individual series LLC for each flip deal. The costs for each will KILL your spread!

What entity(s) do you flippers out there use?

Thanks, guys. That confirms what I thought. Got to get ahold of the probate court and see what we can do.

Anyone used/heard of this HML??? Just found them.

Check 'em out: http://www.dohardmoney.com

They will go 100% LTP (loan to purchase), provide POF, backend their orig. fee and loan payments, etc.

They sound like a short sale flipper's dream for offering a hybrid type of HML/extended transactional funding.

Looking at a deal (?) that presents some interesting twists and turns I've never encountered. So, before I go to counsel and hit them up on this one, I thought I'd run this one by some of who will hopefully shed some perspective and/or experience. I have no idea how this one's going to play out.

Here are the facts:

- owner recently deceased; has no will (died intestate)

- I have been told, but have not confirmed, decedent has zero surviving kin. So, I have NO IDENTIFIABLE SELLER. State law mandates however, if there's no kin in which to heir the property, it would escheat (transfer) to the State. However, since (without a short sale or trustee sale) the liens on property exceed the value, how is that going to work? Even so, assuming we reduced (via short sale) the balance of the loans to market value, it would still require a buyer for the minimum of the reduced loan balance in order to transfer title out of the estate. Why would the State even bother?

- as of now, the property remains in the decedent's name.

- property has been homesteaded which may affect other issues!

What I don't know is how the probate court will proceed with this and who will be appointed/authorized to sell the property,

Ideally, the probate court's administrator would allow my realtor and I to negotiate and submit for short sale to dispose of it to avoid foreclosure. How else is the court going to liquidate this asset (assuming there's no kin of the deceased) without appointing a realtor to short sell the property? Just let it go to foreclosure, I guess? What's the difference to the State, if they have nothing to gain either way - unless the loans become null/void if the decedent has no kin? If so, then this is a no-brainer for the State.

Perhaps, I should try and contact the lenders?

:roll:

I don't see how this moratorium wouldn't be the BIGGEST BOON TO SHORT SALE FLIP investors ever. Think about it. How else are banks going to unload properties if they can't foreclose? Hello? Short sales!

Tried again just now to get thru to CitiMortgage and they pass me to thje wrong dept. that still doesn't know what I'm talking about. There are no such depts.

I feel this is a waste of time and only exists with the smaller regional banks.

I, unfortunately, do not have such an attorney at my disposal. At least not without paying huge hourly fees, and I can imagine how many hours it may very well take to get to the top attorney at these banks. All due respect, I don't see how that's a feasible strategy to break through to the right point person for most of us. By the way, I've never heard of talking about selling notes to an attorney. I learn something new every day!

One thing on all the posts on note buying that I've gleaned is that there's nothing specific on the exact procedures of HOW TO GET THROUGH TO THE DEPT. OR PERSON THAT HANDLES SELLING NOTES. If there is any catch to note buying this seems to be it!

I have called a dozen lenders and get nowhere thus far. I have called all the numbers listed for these institutions. Most of these lenders are the larger ones like GMAC, Citi, Wells Fargo.

I ask for the so-called "secondary marketing dept". and/or "asset management dept." and I invariably wind up with a reply of "we don't have any such dept. It is not on our list" or, "we will have to take your name and no. and a supervisor will research your request and call you back" which they never do, or even "we don't sell our notes" which is not true because I read about their notes being for sale.

I have read that a strategy is to go through the short sale/loss mit dept. and then leverage into my pitch on buying the note, but I've already called loss mit and it's like speaking a foreign language. They don't know what I'm talking about.

I read and hear about those of you who have made headway. Please give me more insight, some backdoor tricks or something, otherwise it just seems it's an another elusive unicor that's all theory, but doesn't exist!

:cry:

This entire topic has been extensively covered in many previous threads. One in particular was started immediately following the now 4-month-old FHLMC bulletin on which I had posted some of my fears, not dissimilar from Eric's.

here's the link: http://www.biggerpockets.com/forums/103/topics/48932-freddie-fraud-?page=1

Since then, I have shared such fears with many and get the same answer which is basically that: "as long as the contract discloses the intent to resell for a profit, there is no fraud."

Read the entire link. There's a lot more banter since everyone was hot on the topic.