All Forum Posts by: Nick D.

Any help or suggestions on structuring commission pay / pay formulas for sales reps for rentals ?

The house is in preforclosure and currently has about 125K in various medical & credit card liens attached to the property that’s on the land records. I want to negotiate them down and buy the property Sub 2.

If I get power of attorney signed by the seller would I then be able to negotiate the liens, or would I have to have the seller on the call.

I want to negotiate the liens since that’s where the equity is in this deal. Mortgage is at 260, seller is 45k behind payments.   the house needs about 75k in repairs.   Recent drive by BPO was 370.  There is about 5 liens in total against the property adding up to about 125k.

I hope this makes sense. Any thoughts on the next steps as to resolving these issues.  

Have a house under contract and Seller has medical & credit card liens against the property. Can someone help break down the steps as to confirming the all of the liens against the properties 

Also when i call to negotiate these liens, does the seller need to be on the phone or can I get a power of attorney notice and do this.

I know the liens in second position on a preforclosure property can be handled, Im just unsure of the steps needed and who I need to call for each of these liens.

Thank you Daniel on the input and advise.  I couldn't agree more on the comment of incompetence. Me and my partner provided all the paperwork required usually same day or day after being requested throughout the entire process. Clean title, and I had a conference call with them this past Friday to ask them what the heck is going on & why the communication has been so bad during this process... It was nothing but excuses and blamed the appraisal company that they manage didnt do XYZ, but even with the appraisal delay that they claim, they still are requesting documents and contact info to people like my insurance company that they should have got in contact with months ago. I feel like I have been holding their hand throughout this entire process begging them for updates.  They pulled my credit Jan 5  and they didnt pull my partners credit until yesterday 2/26 which i don't understand how their checklist towards a refi could be so mismanaged.

In the conference call they keep referring to that we signed an agreement that had a lock period for 30 days, but there was no mention at all that this loan could not be extended, and they even said they never had a request to roll it into a new loan. They had no intention at all to let me know that my rate was floating and would drastically change until last minute and that's what I called them out about on our conference.  When a loan is expiring, correct me if I'm wrong, but they should at least mention it to bring it up to say Hey, your loans expiring here's the plan. Not a peep, and all of these delays have come from them.

During this entire process, I have not received 1 call or email explaining any of the delays. Not 1 call or email even expressing that we will not close on time. Several calls and texts ignored to the point that I had to contact my loan originator from a different phone number so he would answer. Just a lack of respect especially when they wanted me to sign the agreement & make my deposit to start the process, I received a call/text email for 3 straight days to get the sale.

I ended up reaching out to the VP of the company on Friday and I plan on addressing these issues as high up the hierarchy that I need to ask them what do they plan on doing to resolve this.  I don't feel like its fair to be paying the difference of over 1% of a difference on our agreed rate that was not closed even close to on the timeline they promised, and that they did nothing on their behalf to even address the rate expiring/ attempt to roll it into a new loan/ any type of solution, never mind never even mentioning in the beginning that this type of loan (10 year Interest only) could not be extended. If I can not come to a fair agreement, where either they 1 honor the original loan, or 2 cut me a check for difference in interest that will be paid, that i will be filed state and federal complaints against Eastern Union Funding.

Any suggestions for the negotiations that i listed, or if you were in my shoes, what would you deem fair.

Im going through a Refinance that started December. I asked the lender to lock in my rate which was locked in for 30 days since the lender said we would finish the refi before the end of January.

The communication during this process has been “pulling teeth” to say the least. At no point during this refinance period was I informed that we would not close on time. I was never informed that the lender could only lock in the rate for 30 days without an extension period or even able to roll it over. I was never informed that the lock rate even expired. The lender has been dragging his feet during the process and we are still weeks away from closing.

I had a conference call with them today addressing all of these issues because I emailed them to make sure my rate was still locked. I never heard anything from the lender that it wasn’t until today. The loan has been floating since the end of Jan they said because their was no extension period nor even a mention that they did not have an extension period. I was locked in at a 4.45 rate & now the lender is telling me with the loan floating that it will be in the mid 5’s.

I wanted to ask what can I/ should I do to get the best possible results here since the lender has dropped the ball completely with communication throughout the process. We sent over paper work upfront and same day when it was requested. We asked up front to lock in the loan and I do understand the term sheets said 30 days but there was no mention that the lender was not extending the loan or rolling it into a new loan and now I have to pay the consequences of this.

The lender set the tone that this would be wrapped up no problem by the end of January and there has been no proactive talk from them saying that this refinance wouldn’t close by the end of January, never mind now going onto the end of February.

If you were in my shoes, what would you do and what else can I negotiate here. I really do not want to restart the refi process this late into it with how the market is, but I do not feel like this was handled appropriately at all. When you know the loan will not close in the timeline you state that it will, that should be communicated. I had No knowledge that this loan ( it’s for a 6 family) did not have an extension period with it and they only had 30day lock periods before it would float.

What should I negotiate in return and do I have any leverage at this point. Thanks

@Cody Lewis Microstratgety has a Bitcoin ledger and I think that will be something to consider over cash reserves. It would entice people to hold it and it’s clearly going to impact the bond market like a tsunami. Bitcoin & Real Estate & Virtual Real Estate, educate on all 3.

I am trying to structure a seller financing deal and I want to find a solution to one of the seller’s concerns.

A concern his lawyer mentioned to him was the possibility of the seller having to foreclose in the event I did not perform on my payments which I understand since CT Foreclosures take up to 2 years to do. I have gotten some advice about doing the deal as a quit claim deed in escrow to avoid that concern on the seller. I wanted to ask everyone’s thoughts on how they structure Seller Financing deals , especially in states that take longer with the foreclosure process.

What do you do or add into your agreement to make the seller sleep easy at night. I am not worried on my end, but I understand the sellers concern, and I just want to find a solution that will legally enforce me to hold up my end of the agreement, and have it structured in the event that I didn’t, the seller can get the property back ASAP.

Had a question. If someone has personal property into the Forbearance Program. If you set up separate LLC's to still buy rental properties , would you still be able top obtain non recourse business loans on a rental/MF since business credit is separate than personal credit? I would assume and hope not, but you never know with lending loopholes. I spoke with a seller this weekend who has their their personal property in forbearance, but said he was working on buying a small business and I was scratching my head as to how that could be possible.

Thoughts

Yes we are in a bubble with multiple factors contributing towards this.

* The US Dollar is at risk to Hyperinflation

* The Crypto Market (whether you believe in it or don’t) is not only in a bubble territory but is a highly volatile segment

* 0% interest rates would also diminish the impact of central banks’ “printing of money and buying of debt assets,” and could also spur “real interest rates to likely rise because there will be disinflation or deflation resulting from lower oil and other commodity prices, economic weakness, and more credit problems.”

*Commercial Real Estate & Malls that are homes to several small businesses have struggling tenants to pay and afford their rent which then puts pressure on the banks who hold these mortgages.

*Have you noticed that everyone is a Day Trader now a days, and when people are trading on leverage and a pull back comes, margin calls will be coming in at an all time high.

We at some point have to go through a deleveraging phase and have to let interest rates climb high, which will bring down the prices of assets. When the Bubble will pop is the million dollar question. Printing money only keeps kicking the can down the road. It took about 5 years for the Dot.Com bubble to crumble. Ray Dalio (Who called the 08 Housing Crash) had been preaching we are in bubble territory back in 2018. Think about how much money the Fed has printed since 2018. 20% of American currency alone has been printed in 2020 alone.

@Moises R Cosme

Ray Dalio who I believe is the best guy to understand the Economy, period basically described the below.

The stock market and the economy have no connection to each other but is very overlooked.

We are in a bubble simply on the fact of how inflation is going to be at zero (and has been at zero for years) for the next upcoming years. The longer the country keeps interest rates dirt cheap, the more pain comes on the banks who are going to face a lot of problems when foreclosures continue to come in.

What happens if the the big banks fail? No wonder hedge fund elite have all dropped US banks. We are going to print money and things will stay inflated for some time but we are so over due.

That will lead to more monitory easing which will simply destroy the dollar.

(Hence why do you think Bitcoin is getting so much popularity )

Bottom line is there’s a draw back every 8-10 years so we have been overdue for a correction for a long time.. The March draw back to recovery timeline was almost impossible to speculate. Every Tech IPO that comes out this year seems like it’s up 75-150% in 3-6 months. The real estate market is strong but the stock market is so inflated when that goes, of course that’s going to impact the real estate market.