All Forum Posts by: Ram Gonzales

I'm a private equity investor seeking rehab deals to fund, preferably in Texas. I will fund repair costs, but not acquisition. Easy qualification based on the deal. No payments or up front costs. Equity required is 125% of the funded amount. Draws are for work completed up to 50%. Last half paid upon project completion. 

@Rick H. That's part of the problem. I have no idea what equity is available. I'm trying to track down who has been picking up the mail to see if I can find the latest statement. What I don't know is if ALL the siblings would have a claim, or just Bob's. If it is all of them, then this likely isn't going to work, and I just might wait for the auction; but if it's just Bob's, then it might be worth the effort now.

Hi all. I was researching a vacant property and found a sibling of the previous owner. Here's the story. Sue bought the house in 1999. She got married 4 months later to Bob. Sue passed away in 2013. Bob then passed away a year later. They had no children. Sue has 3 siblings all out of state. Bob has 5 siblings also all out of state. I spoke with Bob's sister Debbie. Debbie says that no one really wants to deal with it, mostly because they don't know who legally owns it and the mortgage company won't talk to anyone but the owner. The auction is in less than two weeks. What should be my next move? Talk to a probate attorney?

And do you have to buy in bulk or can you buy single notes?

Thanks all. So @Chase Thompson, do you start with a list of notes or with a list of properties and then find the notes? 

My experience with notes has only been in creating them on owner finance deals. I am looking at them now as a means to buying more properties at a discount.

Rather than trying to find the owners of vacant properties that are going to auction (which has very often been a fruitless endeavor), I wonder if it would be possible to just contact the bank, buy the non-performing mortgage, foreclose, and then rehab and sell the property. 

Is this a do-able strategy? What is the likelihood that the bank will sell the note? Who would be the right person at the bank to ask for to discuss their NPNs?

Thanks for any replies. 

Can the lender do a "soft foreclosure" where they foreclose after a DIL just to clear title but without impacting the borrower's record? If not, how does the lender know, with certainty, they they are not just inheriting new liens on the property with a DIL?

Hey Jim. Congrats on landing such a valuable partner. The simplest thing to do is to just ask him what kind of return would make him happy. Ask him what other options he's looked at and why he didn't go that route. That will remind him of the pain of those decisions and reassert you as a solution to his problem (albeit a First-World-Problem). He may just simply want a fixed rate return per year.

@Jay Hinrichs What kind of "infrastructure" do you set up when you plan to start lending or partnering in a new market? Do you first engage some local experts to be your boots on the ground so to speak or do you simply rely on your relationship with the borrower/partner? 

@Ken T. Yes, I would review and approve each deal to make sure the rehab budget is reasonable and includes a contingency, all of which would need to come under the 70%.