All Forum Posts by: Bryan Miller

@Tom Gimer   It's not that easy.  Hard money lenders won't lend to him because he is living in the house.  Bank financing would take too long.   The sale date is in 7 days. 

@brett

@Brett Goldsmith   Borrower is 45 years old.  Was counting on a lump sum payment to catch him up, but it hasn't materialized for him.  

He was ignoring the situation, hoping for a business deal to develop and then get caught up.  He is focused now on creating more cashflow.  I totally understand your point. 

@Robert Burgess  Good points.   Thanks for sharing what sounds like hard earned wisdom. 

@Chris Mason  - Interesting.  The problem with anything above 10% is that it may look usurious, if I have to foreclose.   

I am considering lending in second position, but requiring a quick claim deed to the property,  as insurance, and if borrower fails to perform on the first or my 2nd position note, then file the deed and take the house.  Much cleaner than foreclosure.   Thoughts?

So I received a call for help on this scenario.   Trying to figure out how it could work. 

Borrower faces foreclosure sale next week.  He needs $19,000 to bring his first position loan current.   He is living in the house.   He owes about $178k on a 30 year fixed at 3.74%  and reports there are no other loans or liens on the property.   Approximate value of the home is $800k.   Houses in neighborhood in central California where houses are selling for $650k- $1M.    

He doesn't want to sell the house.  I'm not a registered lender so max I could charge is 10%, so the risks are definitely not worth the reward, but maybe we could do a joint venture or figure out a way for me to get paid?   He is willing to payout a considerable amount as he is about to loose $600k in equity.   Maybe he gives me a quick claim deed, that I don't file, we do a wrap, and he buys me out in 1 year?   Or he employs me to do some consulting work for him, and secures the amount due with the house?   

He ultimately wants to keep the house, and not repurchase it because he is grandfathered in with very low property taxes.  

Time is of the essence.  Ideas? 

Ray, I'm an investor from California as well. I've been investing with my retirement accounts, and find it to be a great strategy, with lots of compliance and tax issues. One thing to watch out for is the SDIRA were not intended to be used to run an "active business". Another thing is to understand the tax implication of UDFI and UBIT. Yes, tax deferred accounts can still be subject to tax issues. Feel free to reach out. E

One other idea.. Create an LLC. The investors contribute a combined total of $130k to the LLC. The LLC is owned 100% by the investors and would be then entity who makes the loan and owns the 2nd deed of trust. Each lender who contributes owns a percentage of the LLC, all secured by a 2nd deed of trust. Each lender is equally secured by the 2nd that they own factual ownership percentage.

I did my portfolio loan of SFR / Townhomes with 1stt Bank in Phoenix.

Working on raising capital for a land development deal.

Project is in final stages before it can be sold to a builder.   Funds needed for engineering fees to modify a previously approved plat.  All studies have been approved.  Lots can be papered and sold to a builder in approximately 6 months.   Infill area near major US City.  High demand area.   Builder who has previously purchased lots, wants to purchase the property as soon as the plat is approved.  

Entire project has been appraised for $11 million.  Phase 1 is being split off now and valued at approximately $4 million.  Seeking 1st position loan of $1.5 million for up to 12 months.  

Highly profitable deal.  In additional to interest, profit sharing bonus which will juice returns. 

Further details available.  Send PM.  Serious inquires only please. 

John,

I sent you a PM.  Looking forward to speaking with you.

The 2nd option. But typically it works out more like 300k in for 150k profit out in around 6-8 months which is a 50% ROI. A big chuck of capital still comes from a bank or hard money lender and often I am the Gap lender in 2nd position.

Manolo,

I really look at risk and return on capital.  I've partnered on both lower and upper end flips in LA and Phoenix and the margins on the upper end have the potential to provide greater return on capital. 

Accurate repair costs and ARV are important.

I like 30%+ plus ROI in 6 months.