All Forum Posts by: Ron P.

Usually it's the buyer that has a right to cancel subject to an inspection, and that can be whatever buyer & seller agree to, as a buyer you want to push it out as much as possible.

Thanks!

@Brian Eastman

@Dmitriy Fomichenko

@Brian Eastman

Divorce was a long time ago, no conflict there I can see.  No offset, no alimony, no child support, nothing.

My IRA holds a first and second against the same property. I would sell her the first and keep the second. Both loans are current and very well secured with a good equity cushion. I see this more as a courtesy to her than some kind of a bailout as it is a great note with a good interest rate.

Is it considered a prohibited transaction to sell a note held by my IRA to my ex?

 Hard money rates depend where you are at.  Here in Los Angeles you could probably get a hml for 10%, 2 pts if you look.  Now that I think of it, you could probably find some dopey private money lender that would go for 8% or 6% no pts, 100% of purchase price and rehab - they generally have no concept of risk, they spend all their time working hard so the can "invest" their money with a newbie flipper that has no clue what the 70% rule is.

The OP started with the notion that hml's are better for newbie's because they can vet the deal and borrower where a private lender cannot.  I agree.  I would like to add that hml's also vet the lender for suitability where a private lender (or newbie borrower) cannot.  A hml brings the two parties together, both need vetting.  Here in CA, a licensed hml is required by law to ensure the private lender meets a very strict suitability standard.  This is a good thing.

Private lender's ALWAYS drool over any roi greater than 1%, without regard to risk.  Newbie flippers ALWAYS overestimate purchase price and arv, and ALWAYS underestimate costs and time - did I say ALWAYS.

Of course there are bad actors in the lending business - what - and there aren't in the legal profession, or accounting profession, or rei profession.

@Account Closed

My son just graduated from ucb.  I had to haul up there a couple times and find an apartment for him and his buddies so I'm a little familiar with the area.  The only thing I saw bad was people's park, but then I wasn't there long.  Everything there put my mind, body and spirit back into the 60/70's, it was great, especially after downing some wine and walking up telegraph ... it was a much better time then!  Everything sucks now, or maybe it's just because I'm more aware.

 If it was my daughter I'd get her a shared apartment in Santa Monica, bus up Wilshire Blvd to school every day.  SM and Venice are the new Silicon Valley, affectionately referred to as Silicon Beach, lots of high tech, young people and of course the 3rd St Promenade.  I commuted to ucla everyday from my parent's house in SM, didn't realize how nice I had it until I graduated and saw how brutal the real world really was.  Hated ucla, way too much of an institutional feel, yuk.  ucsb was my first choice but my dad wouldn't let me, said I would get in too much trouble (probably right in hindsight), I was too immature, maybe still am.

I'm guessing there are a number of struggling renters in sub $1000/mo SM apts left over from when it was declared the peoples republic, along with super strict rent control, that would be happy to get a little extra income.

There are no bad neighborhoods or cheap real estate within a reasonable distance of ucla.

Now that I think of it, my daughter just got accepted into the Nurse Practitioner program at ucla.  I don't know how she is going to get to school from where she lives now, she is so independent and self sufficient she rarely asks for any help.  Hmmm, maybe we can get something going here.  She will eventually come to me for help, she always does, but only at the last minute when it becomes a crisis.

Look at item 8 in the AOAA, it specifically says buyer (assignor) is not released.  If I was a wholesaler I'm not about to give all the control to an assignee and remain responsible for their actions.  These really are legal question and I'm not an attorney.  Maybe a wholesaler would care to chime in?

@Kelly O'Quinn

Any luck with the CAR hotline?