All Forum Posts by: Rick Rapant

Thanks Darren. I do have a questionnaire in my arsenal, however, reviewing the one you have might not be a bad idea. How would you get that to me?

Got my hands on a couple of performing notes well seasoned and excellent pay histories for 2 condo units in Florida. Can anyone advise on what to look for before purchasing a performing note on a Condo or Co-op? I've seen some discussions on staying away from HOA's but how does that effect the purchase of a PN? What other red lights should I be concerned about beside the standard DD requirements to purchase any PN?

Thanks Tim. I did read that in the Ohio foreclosure law site I was on.

Dion, Wayne,

Lots of input with very good points to consider. I researched a lot on the Ohio Foreclosure Laws last night and read just about everything you mention and with the way you explain the plus and minuses you made it all clearer. I might not take this any further as for right now I'm looking for a more passive investment which I know do come with a higher ITV. 

Thank you all for your input. This forum is an outstanding place that is full of information and I've learned so much by reading all your comments not just for this post but for everyone I've read on notes. Keep up the good work and thank you for the paying it forward. 

Thanks Wayne. More advice well taken.

Hi Mike,

Thanks for your reply. It's unclear to me as well as I will need to do some more DD with the owner as to the Judgement and its details. I've researched some legal ease on foreclosure law in Ohio and see a contradiction in the value of his Judgement and what is allowed by law. Seems that 2 years after foreclosure the judgement is removed. Going back in for more DD on intent then if it passes call in legal. Thanks again.

Hi All,

Thanks for the advice to seek legal review. The note is in Ohio. I should have mentioned that in the Info portion.

The Info:

Seller of a note, I'm considering on purchasing, foreclosed on the borrower back on 12/25/2014 and holds a 100k deficiency lien judgment on them. The borrower, same individual, wants to stay in the home and has steady work with proof of income is the DD. The taxes are current and so are the payments since the new workout for 3 months. The new note is in the form of a Land Contract which I know means that if there is default, I can evict and enforce the judgment. I'm looking to purchase at approx 65% to 70% ITV.

My question:

What happens to the original 100k deficiency lien judgment and how if any does it affect the purchase of this note?

Estimating rehab costs takes time to learn and the only way to do that is by finding an honest and trustworthy contractor who will be willing to work with you. As in any business it's all about supply and demand. Contractors are a funny breed. When the work is scarce they'll bend over backwards and take on any project or request. When it's busy, like it is currently, they rather just throw a lump sum price and see if it sticks. 

It will take time to find the right fit when it comes to your contractor. Make sure to request and they should be giving you a detailed time and material breakout cost for the work that needs to be performed on the target property. This will help you understand how long different projects take to perform so you can begin to learn the pricing yourself. Also you might want to consider cutting them in on the deal for a percentage if the numbers are good in order to make it enticing to them so they'll work with you again.

Good luck

Thank you all for your input, information and advice.