All Forum Posts by: Michael Morrongiello

BAWB- The Bay Area Wealth Builders Association
Real Estate Buying & Investing Group Monthly Meetup
Since 2000 - High Quality Discussion, Information, Education and Networking Opportunities for both the beginning and seasoned Real Estate Investor
WHEN: Thursday April 20th, 2023- Our REGULAR BAWB Monthly Meeting
TIMES: Networking Starts at 6:30 Pm - So Come Early if you can
Meetings begin 7:00 Pm & End Approx. 9:30 Pm
ADDITIONAL DETAILS (upcoming events, workshops, directions, etc):
Go to our web site www.BAWB.info
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Don't Get Snake Bitten- The Importance of Property Inspections

Whether you are a Beginner or a Seasoned Pro. If you're Buying or Selling Property in CA and the SF Bay area you need to be aware of how a Certified Professional Inspector conducts a non invasive examination of the Condition of a Home.

These inspections typically focus on the TOP (5) Five important components of a house but also include many other insights that can save you a lot of Heartache and Headaches.

Join Us for this VERY Informative Meeting Discussion which will include:

* How to Avoid Unforeseen Problems
* What does NACHI stand for?
* What are the many Different Types of Property Inspections
* Different Types of Inspections for Residential Vs Commercial Vs Mixed Use Properties
* What are the TOP 5 areas inspectors look at that you must be aware of
* Foundations, Roofs, Siding, Windows, Heating, Cooling, Electrical, Plumbing + PLUS
* Is Visual Alone - enough?
* What are some of the MAJOR and often costly areas of a property that Inspections shed light on
* What type of Training and Technology are Property Inspectors using
* Mold, Radon, Water Quality, Energy Audits- SHOULD you be Concerned?
* How SHOULD you read and interpret an inspection report
* How are costs for repairs or remedies established?
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Don't Miss this Important Meeting that just might save you from
the costs of Thousands $$ of dollars of unexpected and expensive remedies !

Joe
They rates on RM- Reverse Mortgages are perverse.
They also cannibalize equity over time. 
The property owner is tapping equity to make an investment for his children. 
They also intend to leave this home to them as well 

Situation:
Have an elderly property owner who has owned their residence for 20+ years.
Current value in the $600K to 650K range +/-
They LIVE in the home.
They have an existing 1st lien on it with a current balance of Approx. $200K @ 4.0% that is a FIXED rate, Fully Amortizing Mortgage they took out about 10 years ago. Its now 10+ years into its 30 year term where more and more of their monthly payments of P & I are going towards principal reduction.
Their payment of P & I is roughly $1,200 per month.

Problem:
They want to PULL out $150K (as Cash out) or so of their equity in the property.
They are semi retired and SELF EMPLOYED and because of challenging income documentation they
would have difficulty obtaining financing traditionally AND the Current Interest rates other lenders
are quoting are in the 6.5% to 7% or Higher range. They are opposed to paying of that existing LOW 4.0% 1st lien to replace it with
the higher interest rates currently being offered.

Proposal:
We might consider ORIGINATING a Wrap Around Mortgage for them to secure a Wrap Around Note
for $350,000 (plus some cost and expenses) at a 7.0% Interest rate on an INTEREST ONLY basis which would
encircle and include the $200K underlying 1st lien payment. The I/O payment on the $350K WRAP Note @ 7.0% would be $2,041.67
Then from that Payment COMING IN - the $1,200 payment would have to be made on the existing underlying 1st lien.
The TERM would be for 5 Years (then would mature)

Thus its costing the Borrower $841.67 per month EXTRA to Borrow the $150K in cash out they seek
That is great BENEFIT to them
BENEFIT to the Lender; Only putting out $150K vs $350K and
The WRAP Note which has Interest only payments coming IN will capture the continued AMORTIZATION of the underlying 1st lien
as those payments or P&I are made.

Borrower at any time in the future can be restored back to their 4.0% Interest rate Note by paying OFF the DIFFERENCE Between the $350K Wrap  Around Note and whatever their UNDERLYING 1st lien balance wold be at that time.

Concerns:
State - CA or NV
Can this be done?
What about the borrowers age, occupancy status, etc.
With the WRAP Note/Loan:  Should there be concerns over the INTEREST ONLY  repayment terms and the BALLOON payment due in 5 Years?
What about other issues?

Hi Kyle and others; 
We've been investing in the SF Bay area and beyond for many years. There is a GREAT educational group that a lot of folks attend - now in their 23rd year of holding high quality discussion on Negotiating, Alternative financing, Buying, Selling, Leasing, Managing, Optioning, and Exchanging real estate and it meets every month in Marin in Corte Madera. Check them out; Bay Area Wealth Builders Association.

BAWB- The Bay Area Wealth Builders Association
Real Estate Buying & Investing Group Monthly Meetup
Since 2000 - High Quality Discussion, Information, Education and Networking Opportunities for both the beginning and seasoned Real Estate Investor

WHEN: Thursday Feb. 16th, 2023- our REGULAR BAWB Monthly Meeting
TIMES: Networking Starts at 6:30 Pm - So Come Early if you can
Meetings begin 7:00 Pm & End Approx. 9:30 Pm
ADDITIONAL DETAILS (upcoming events, workshops, directions, etc):
Go to our web site www.BAWB.info

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GENERATE BIG CASH FLOW from Small Dollar Investments!

Creative deals—you know or have heard of; Subject to, Owner Financing, using partners and private lenders—have a bit of a reputation for being ADVANCED deals that you can only tackle once you have a lot of experience.

THAT’S TOTALLY UNTRUE!

Lots of our members have gotten STARTED using Creative Deals, because they don’t require Good Credit or Lots of Money or Experience or IQ points.

They just require the proper KNOWLEDGE and the CONTRACTS. Seriously.

If you’ve been sitting around thinking, “I’d like to do what Andy Teasley does, and buy deals with Little or No Money Down and get Cash Flow from them, but I’d better wait until I’ve flipped some properties more before I try it"

We’re here to tell you that you can do it NOW...

Your first step is simple:

Come Thursday Night to our Regular BAWB Monthly Meeting

and DO NOT MISS Andy’s LIVE WORKSHOP class Saturday 2-18-23 and Sunday 2-19-23 held in Corte Madera.

It will teach you everything you need to know AND give you the case studies, paperwork, and contracts you need to get started, and if it doesn’t, we’ll refund your tuition by Noon on the First Day.

For More Details about this Powerful Workshop

See Below or go to our Registration Link

Don't Wait -Register Today for this Fantastic Educational Upcoming Workshop Event

which has limited seating that remains and is filling up quickly.

IMPORTANT: Early Bird Discount Tuition ENDS 11:59 Pm Monday 2-13-2023!

Andy Teasley is teaching a full weekend course on Yield based investing Live and in person in the San Francisco, CA Bay Area. We'll begin Saturday morning with basic instruction on using the HP10bii financial calculator. During this section you'll learn the 5 buttons on the calculator that will change the way you look at every transaction.

We’ll say it again: you don’t need zillions of dollars, or great credit, or to take on a full-time, highly taxed wholesaling or retailing “job”, to create big monthly cash flow.

Andy Teasley has done just that, using a combination of creative buying strategies, lower cost properties, notes, and a firm understanding of the math of constructing deals, for many years—and now he’s bringing that vast, valuable experience to us (well, a VERY SMALL Group of us, anyway), in a live, 2-day, in-person workshop class.

This will be a Lively Hands On Class with Students Attending of all Experience Levels.

And NO, you don’t have to be an experienced real estate investor to use this strategy, because Andy’s got 2 days to break it down into bite-sized, understandable, actionable chunks for you.

Here’s a taste of what you’ll know when you leave:

•How to “begin with the end in mind” by using a simple financial calculator figure out payments, interest rates, yields, terms, and the best “numbers” for any deal

•How to buy your properties subject to the existing loan, or on lease/options, or using wrap mortgages, so that you put little to No money down up front

•How you can outbid every one of your competitors on every property, and even OVERPAY and still get lots of cash flow

•How notes work, and how you’ll use them to make your deals ‘hands-off’, and how you can use them to get any money you DID put down back right away

•How to use the “Ten for Twelve” technique to get a 35% rate of return

(none of your so-called competitors know about this)

•How to do all of this in your tax-free retirement, education, or health-care plan

•The basics of finding and rehabbing property and other assets and mobile homes to create KILLER Returns

You will Learn Powerful Negotiating Techniques and

how to close ANY deal and KNOW its yield

Because of the Interactive Nature of this Workshop,

Class Size will be VERY limited.

Early Bird Discount Tuition ENDS SOON!

11:59 PM on Monday 2-13-2023

Your Tuition Includes an Extensive Take Home Manuel and All Forms

PRE-Register Today!

For More Information, Lodging, or to Register CLICK HERE

Nathan - with such a major fire like this and the aftermath. This house is likely NOT going to be
view favorably by anyone other than skilled Contractor / builders or investors.

Dealing with a Fire Damaged multi level home. Its experienced a MAJOR fire years ago and has been vacant since. A lot of the floor joists and sub flooring along with staircases in the home were charred and compromised by the fire. They are challenging to even set foot on for viewing purposes. The Owners who received a settlement check from insurance in the past, have now surfaced and want to SELL the property. They are concerned about me or anyone else (contractors, vendors, tradesman, inspectors, etc.) injuring themselves when attempting to VIEW the property; particularly the interior of the house given the compromised floors and staircases.

The potential liability is what the are concerned with YET the property has sat VACANT for several years.

To Appease their concern; I suggested that ANY and ALL on site visits to view the property would be supervised and that
ALL visitors would be required to SIGN a Waiver Disclaimer - releasing US (as the Buyer/Wholesaler) and the Property owners/Seller from any liability.

Any thoughts on this approach to appease the seller and their attorney?
(much appreciated)

Understood - I am just looking to for a way to do a QUICK online search of an Address to SEE IF The property is located in a designated Opportunity Zone or not....

RPR - Realtor Property Resource out of Chicago, IL
is one company that does offer such a service FREE but ONLY for Realtors

Is it possible to see if a specific residential property ADDRESS is located in an opportunity zone?
Is there a user friendly FREE web site URL that one can visit to determine this?

There is a LOT of discussion about whether a bonafide Ratified contract to purchase or Option to purchase agreement with a property owner creates an equitable interest for the purchaser in the property and thus being able to now LIST that equitable interest for sale thru MLS Marketing.

There are also several so called Seminar Guru's touting this exact methodology of being able to market their Wholesale Deals thru MLS as well as other ways. The wording of the Agreement or within the purchase agreement / option is the KEY - that is the guidance I am looking for....