All Forum Posts by: Michael Finkelshteyn

Thanks @Dave Metsker. Thats interesting. So what type of language dictates that the HOA lien is superior to the mortgage? If that's the case, wouldn't lenders be wary of lending to a property in an HOA? It seems like you could lose your investment for a small sum.

Hey guys, thanks for all the replies. I didn't mention earlier that the property has already gone through probate. The certificate of notice states that the only beneficiary is the decedent's non profit organization, so that should answer your question, @Account Closed. 

I am not really sure how the spouse is involved and what claim she has to the property. 

The IRS lien was filed in 2014, the foreclosures and judgements were initiated before that. I read somewhere that the IRS is not a senior lien if it's filed after a foreclosure, but that's kind of odd to me. I thought Uncle Sam barged had senior rights all the time. 

My thinking was similar to yours, @Hal Thompson. I was thinking that the HOA lien could be paid off, the mortgage brought current and then assumed. Then the property could be repaired and either flipped or rented.

@Dave Metsker, I don't understand how you could foreclose with a junior lien if there is a senior lien in place. 

But overall, @James DeRoest is correct, I am not desperate for this deal. It was just an interesting deal and would have been a good exercise if I knew for certain that it was profitable. 

I came across a seller (widow) that presented a pretty complicated situation and I am trying to determine if there is something I am not aware of that could make this deal work. 

• Husband passed away beginning of 2014
• Their property was in default starting mid 2013 and the bank has filed foreclosure notices but no court date has been set. 
• There is an IRS lien filed under the husbands name which the most recent notice was filed beginning of 2014.
• The husband's will states that the sole beneficiary is his non-profit corporation. However, this corporation has 3 judgements levied against it that total to at least $300k!!
• Here are the numbers:
• Mortgage: ~130k
• HOA Lien: ~ 8k
• IRS Lien: ~70-80k
• Judgements: >300k
• ARV: ~250k

Obviously, this deal won't work if all debts/liabilities have to be paid, however it could work if the IRS lien and Judgements can be decoupled from the property. Is there anyway of doing that? 

@Fred Heller  do you have anyone to contact at Liberty Mutual and Hiscox?

I am part owner of a duplex with two other partners. We own the duplex free and clear. Both units are rented and we're generating good cash flow. 

We'd like to refinance, however the duplex is in an LLC. We looked into commercial 15 year amortization with 5 year terms, but that's a bit too expensive. We've spoken with several banks about getting a conventional 30 yr with the three of us as guarantors. Unfortunately, the property appraised around $70k-$75k, and at 70%-75% LTV most banks won't waste their time.

I've thought about doing a 10/1 ARM, getting a line of credit and/or approaching private lenders.

What other methods have you guys used to refi? 

Do you guys know any lenders in Houston that may refi such a low loan amount?

Thanks

Hello,

I am looking for hard money lenders in Corpus Christi, also if you're an investor in the area, PM me.

Regards,

@Tricia Mercado from what I've heard and am now experiencing first hand, you're probably better off targeting a large swath of area thats not specific. On my direct mail campaign, I targeted Spring Branch and sent out 1300 letters and I've had an awful response, like 1%. I am on round 2 of the mail out but it's becoming obvious that I may need to switch areas. I may be wrong, but the issue lies in the fact that Spring Branch is a hot area and everyone and their mother is targeting this area. You have big time wholesalers, flippers and retail buyers to compete against.

Michael,

Thanks for the reply. I read your post as well. I agree with you, it all comes down to building relationships. I know a few CRE brokers in mind that I could approach.

Now, how big were these multi-families that you were mailing to?

What sort of direct mail strategy would you employ to small multi-families (5-20 units)? Is that even the proper strategy for small multi acquisition?

More than likely, you'll have a more sophisticated seller, so I would assume they wouldn't really respond to the yellow letter and postcard tactic. However, most of these sellers will likely be individuals so they may be at the whims of emotional forces that respond to yellow letters and postcards.

What do you guys think @Jerry Puckett, @Aaron Mazzrillo? I wanted to get Dev Horn and Jon Klaus on this thread, but we're not colleagues at the moment, so feel free to invite them.

P.S. I am sure this question has been answered somewhere on BP, I just haven't been able to find it specifically towards smaller multi-families.