All Forum Posts by: Shafi Noss

@Jamie Hora@Chris Kersey

Yes I'll reach out to both of you. Thanks. 

Anyone here have experience in ground up small multifamily 20 or less units? Looking at a few projects and open to sharing GP if something comes together. 

 And is there a way to evaluate the risk the project falls through like Foxconn or do you think it's reliable once it reaches the planning department?

I think each type of lien is different in each state (HOA vs. Investor vs. tax), but if it is a 2nd lien from an investor, there may be an intercreditor agreement that spells out the rights of the 2nd lien holder. Getting a hold of that document would be important for understanding your rights, and 1sts generally prefer to be bought out rather than going to foreclosure.

Recasting generally means making a lump sum payment to principal, which is an effective way to reduce your monthly payments. 

If you are talking about refinancing to stretch your payments out over a longer time, that is also an way to increase cashflow. 

An added bonus is that you will also boost the portion of your payments going to interest, which increases after-tax cashflow. 

 Yes we don't know for sure. But the OP said "I know I can sue him for breach", so I took him at his word. 

@John Clark. Yes I know that. My point is rather than needling over the technical inaccuracy that a lis pendens is a lawsuit, it's not its a signal of a lawsuit, I just took his meaning in good faith without creating a fuss over a technical innacuracy. 

In this scenario the seller is trying to back out of a legitimate sales contract, so the buyer has a legitimate case to file suit, no slander of title.

The original scenario is where the seller is in breach of contract, so there would be no slander of title. 

I just started a lawsuit in California against a debtor, it cost about $850 to get it started. The lis pendens I'd guess is another few hundred to file. In my case it wasn't too costly but could be different for someone else I guess. 

Again, the OP was asking how to create leverage. With the release unsigned, at least in some states, the threat of litigation and clouded title is there and that's free. 

I think you are misunderstanding what I say and are criticizing that. 

Earlier you said 'record the contract' even though purchase contracts don't get recorded. I knew what you were getting at and did not accuse you of misinformation.  

You say a lis pendens is a lawsuit, but that's not true either. Is that misinformation?

Yes a lis pendens signals a lawsuit, and a lawsuit must be filed to record a lis pendens. However filing one is cheap and does not require the cost and time that executing the lawsuit would. But title is still clouded which creates the leverage the OP is after. 

Even if it is not recorded, the OP could say to the seller, "Work this out with me or I will cloud title" and that can create the same leverage. 

It depends on the specifics and I'm sure a lawyer could point out some technical inaccuracies in what all of us have said, but I believe this is a legitimate avenue to explore to address OPs goals.