All Forum Posts by: Michael Spadoni

Investment Info:

Single-family residence live in; buy & hold investment.

Purchase price: $398,000
Cash invested: $13,000

3/2 Condo. Unit was all original from 1986 and needed updating on interior elements.

Complete Rehab: floors, walls, ceilings.

In progress Rehab: Kitchen, Master Bath.

Planned Rehab: Guest bath.

What made you interested in investing in this type of deal?

I wanted to find a deal that I could immediately force some appreciation in price through updates.

How did you find this deal and how did you negotiate it?

I found it through a realtor. The market in Hawaii is always hot so there are limited deals in this price range. I was searching for about 6 months before this property became available. Once I found it though I moved quickly to assess and submit a deal with my realtor. There is not a lot of room to negotiate in this market so I leveraged the needed upgrades for a price reduction.

How did you finance this deal?

I used traditional funding and a VA loan.

How did you add value to the deal?

I rehabbed the interior. The market appreciation through holding is also a great aspect of the Hawaiian real estate market.

What was the outcome?

Still in progress.

Lessons learned? Challenges?

Certain aspects of Hawaii Real Estate can be confusing; Fee Simple, Land Lease. These are important as the prices are dramatically different. Be aware of this as it can waste alot of time during your research if you are moving down the wrong path.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I used Locations Real Estate Agency. My realtor was Christina Davis. My mortgage broker was Kelli Ishii. They are great professionals and would work with them again in a heartbeat.

Gentlemen,

Thank you. I see that direct contact with the buyer prior to purchasing the note can be in violation of some state regulations.

When evaluating a note and you have questions that the borrower can answer, can you directly contact them?

Mike Hartzog is there a step to validate these payments? Or is it not that transparent?

I appreciate all of the input and views. Being new does put me into a position of misinformation for some of these things. I will make sure to perform a very thorough due diligence process.

I stumbled upon a website: Propelio. They offer MLS data as well as other sources of data and information for real estate investors. Does anyone have feedback from this company?

I am looking at a few note options for myself as an individual and there is one thing that is perplexing me. Are reperforming notes commonly marketed as performing? 

John Thedford I do intend to get the borrowers paying again and turn a nonperforming note into a performing note. If that happens the foreclosure process will have to be cancelled. I will have to just contact local attorneys unless anyone else on here has some input.

@Roma Korenyuk thank you for the input. Is there a administrative action or cost to take the house out of foreclosure or does the borrower take care of that? 

I am looking to purchase a note where the borrower is currently in foreclosure. I want to know, if I purchase the note am I required to hire a new lawyer to continue the foreclosure process, of does the current serving counsel maintain the case?