All Forum Posts by: Rob Pattison

Keeping as a duplex and renting it out is a valid/lucrative option.   I've grown tired of tenants, termites, toilets, vacancies, maintenance, etc.

I prefer to just own the note and all the above is the responsibility of the borrower.

My attorney called me today.  The borrower is going to refinance and go with another lender, and pay all the closing costs and my attorney fees.   I'll look to buy another non-performing note, just make sure I'm buying a note that is serviced by a professional servicer.

The first time I cut the borrower a break because there was a transition from one lender to me.   The second time he paid and brought his note current barely before I sent him the attorney letter intending to seek forfeiture.   This time, it is 3 strikes and he's out.

I also need to show the judge, should the tenant bring a lawsuit, that I've been reasonable.   

What would do now, if you were the lender?

Good Afternoon Chris, the note is in Memphis, Tennessee.

I appreciate advice from others who've been in a similar situation.

I bought  a" performing" note back in June of 2021 from an investor that turned out to be non-performing.   The investor kept his own books.  Note to self:  Only buy notes in the future from someone who has a professional servicer servicing the note.

The borrower turned out to be 8 months late.   He ignored my servicer's attempts to get the 8 months' payments to reinstate the note.  Finally I hired an attorney and sent out a demand letter demanding payment to reinstate or I'd take possession.  Magically enough payment came in that week to reinstate.

In 2022, after 8 months of somewhat on time payments, the same non-payment pattern started in November.   I looked for an attorney to evict as now there is a pattern.  Before I could commence action, the borrower paid one month's rent out of the 3 that he owned.  The servicer returned the check.  The borrower then sent by certified mail enough money to reinstate.

In 2023, Nov 21st, the same pattern, no payment.   In January 2024, I told my attorney to sue for possession as the buyer is now in violation of the contract he signed, entitling me to possession after 30 days delinquency.  The servicer is not accepting payments.  This note is a contract for deed, not a mortgage.

The house behind the note is a duplex, worth around $80k as is.   The P & I payment is $243.60.  Interest is 11%.   Late payment fee is negligible.  Payoff amount is $20.7k.

The borrower is high maintenance and his behavior pattern requires that I hire an attorney on an annual basis.  Some but not all of these costs I've been able to tack onto his balance.

My plan is to evict and sell as-is, or he can refi and pay me off the $20.7k.   I've also submitted a cash-for keys offer consisting of me paying him to move out and first and last month's rent somewhere else in return for possession of the property.   I'd have a guy at the door who inspects the house to make sure it is empty, takes the key, gives the cash, then we secure the property against squatters, and sell as is asap.

Would anyone take a different course of action?

Good Afternoon JD and Chris.

The apartment complex is on market.   If you email me, at [email protected], I'll send you more details and contact inf

I know the owner of an apartment complex in coastal southern California, near the Long Beach area.  There are approximately 30 units, rent is below market, and within approximately 20 minutes walk to the beach.   The owner is looking to sell, if anyone is interested, let me know and I'll send the contact info.

You can walk to the beach in about 20 minutes.   Twenty six of the units are 1 bed/1 bath, 2 of the units are 2 bed / 2 bath.   There is an adjacent apartment complex also for sale, a 20 unit.    Buy either or both, tear everything down and rebuild according to your vision.

Email me if interested, for more details.

Great advice, everyone.   To bring you up to date, the seller's broker has verbally promised me 1.5% of the purchase price if I bring a qualified buyer that ends up purchasing the property.

That promise was made to me verbally on a phone call today.   I asked for her to reply to my email confirming our agreement in writing and have yet to hear from her.   Reading your feedback, I can understand why she may be reluctant to do so.

She said, and I thought, that a fee for marketing services would be legal for her to give.  This property is in California.  I may need to check the California legal requirements for real estate brokers.

My main real estate focus is buying non-performing notes in the red states and an airbnb rental in Costa Rica.   I personally know the owner of this 20-plex and have agreed to help.  The building is dilapidated, has some challenges, was built in the 60's and there will be a challenge to sell.   Similar apartment complexes of similar size in the general area have been on the market 4 to 5 months.

I'm guessing if I bring a buyer/investor who doesn't need an agent, then the broker can give me 1.5% of the purchase price.

Maybe I need to obtain my real estate license going forward, not specifically for this deal, but in general for when these occasional deals come up where I can work them time efficiently.   I do have a network of people who can buy a 20 plex in CA.

I have an opportunity to wholesale a 20 unit apartment complex between Long Beach and Huntington Beach, within 1/2 mile of the beach.   I met the seller's broker who agreed to give me a "marketing fee" if I come up with a buyer that closes.   I'm an investor, not a licensed agent.

My question:   Before I disclose any contact information or address to the buyer, how do I make sure I ensure I receive my agreed fee?

Thanks for your advice, John.   I'll keep you apprised as to what happens.   I'm inclined to call the whole note due as this borrower, by his actions, is playing games.

I follow the maxim:  Actions Speak Louder than Words.