All Forum Posts by: Olga Levin

Thank you everyone for your input! I really appreciate it. It is so frustrating that these things happen @Bill Richard. A lot of people apparently operating in very shady ways and even fraudulent without caring about their reputation.

@Jay Hinrichs surprisingly I couldn't find much discussion on 2nd position defaults on the forums. Not sure if people are not keen to share or if it's just not very common. 

The third position was actually told by the title owner he was going to be in 2nd position (even though he prepared and recorded my loan as well) - which is fraud I believe. He was also the person who brought the deal to the third and who is now telling him he had put his own money in to pay the HML delinquency and that he has some rehab guys that are going to finish the project and he wouldn't allow for him to lose any money... The third lien actually believed him and extended his loan due date... I didn't get any proof or confirmation of this plan from the title owner even though I asked

@Leigh C

You are close in your calculations. There is 522K of liens on the property and with the title owners money and remaining rehab, it would be  570-580K. In it's current unfinished state, the property probably doesn't have enough equity to cover my loan and certainly not the third lien. If finished 630K is realistic. He even sent me a 700K offer contingent on completion of rehab before he stopped communicating, but if I have to go through a lengthy foreclosure process, this thin margin is going to be wiped out.

I am guessing best case would be to pressure him for a deed in lieu in this scenario and take over the project now before the first has int. and fees piled up enough to wipe everyone out.

Would appreciate any wisdom BP has to share. I am sure someone has dealt with a partner that just goes silent. What do you do in that situation?

@Leigh C

No by the terms of the loan he pays the principal and interest at the end when the propeprty sells. I haven't seen many 2nd liens where that is not the case.

@Wayne Brooks I tried... The wouldn't really release any info, just said they do not allow any additional liens behind theirs.

@Leigh C Thank you for your response. 

Yes I agree with your assessment, he is in over his head. There is nothing happening at the property and hasn't happened since Dec. The fact that he is not responding to communication and not coming forward to explain is the concerning part here. He was also obviously dishonest to begin with, telling me he has cash in the deal and then putting multiple liens on it. 

Hello BP community, 

Really need some help and ideas on dealing with this situation. I know I probably shouldn't have done this deal, but I have lent on 2nd liens successfully before.  This one however, gone pretty bad.

Back in Sep, I was introduced to a rehabber/RE agent from Orlando FL. He was looking for a 42K loan and had 45K of his own cash in the deal. He had a 1st lien at 437K and was projecting 630-700K ARV. We agreed on personal and corp guarantees and a recorded 2nd lien. Everything was going good until about Dec when his contractor was out of town and he had to wait for him 4 weeks. After that things get murky... updates were hard to get and were far and few between... the last communication was that the original contractor was overpaid and didn't finish and he was talking to another one to complete the project...after threatening legal action he goes completely silent around beginning of March.

Now I start looking into it and find out that:

1. There is a third lien recorded for 42K

2. The first lien states that they do not allow any additional liens on their deals.

3. There is a person involved who is a title company owner and recorded mine and the third lien, who apparently brought the third lien to the deal and told them they were in second position. He is now claiming to have put his own money into the deal to bring the first lien current that was delinquent since Dec and that he speaks to the rehabber regularly and has some people involved who are going to finish the construction.

Sent the borrower a demand email, based on a clause in our contract that property must be listed for sale within 90 days or he is default... No response.

Had multiple people, including the person who introduced us and the title owner tell him to reach out to me... No response.

I also spoke to the third lien holder who believes his investment is safe. I think he might be comforted by his relationship with the title owner who keeps reassuring him he is not going to lose money... I am much less sure of that at this point.

Working on getting an attorney to send a demand letter, but I feel it will get the same response as my attempts to communicate. Looking for angles to pressure him to get back to the table, be open about the situation as crappy as it is and work together or step aside and let me take over the project, so it can be finished and sold as soon as possible. 

What are my options.. what would you do in my position? 

I need to hire an attorney in Orlando area to go after a borrower who fell of the map and won't communicate. The loan is in default at this point. Would appreciate your referrals!

@Sabrina BrownThank you so much for sharing this information. I am currently considering TK operators in Memphis and I read invaluable information in this thread. Is your problem property the one that is not in a great area?

Unfortunately I have experienced all of the property management issues you have had first hand. It is really crucial to find someone reliable. It sounds like you finally have!

Sabrina, Can you share who was the TK operator who sold these properties to you? Was it McNutt or was he only the PM and could you share who is the new PM you found? Are you still happy with them?

Hello BP community,

I am looking for a software that could be used to combine property management, CRM and ability to share tasks with multiple users, as well as integration with accounting software like quickbooks. Asking too much?

Our company currently has over 60 units and we intend to grow that number to over 200. We have rental units and we manage flips in multiple cities and states with many partners and managers involved. We need PMs to be able to access the software to keep us up to date on the progress of the software. Ideally a patient portal as well to allow direct payment by the tenants.

Please share your wisdom and experience on which software would fit this scenario the best?

Thank you in advance!

Olga