All Forum Posts by: James Floyd

Hello everyone,

I wanted to thank you all for your BP support and give you an update on my progress this year.

I sold the flip home in Macclenny back in April with a nice 50k return. I have three more on the market now and just purchased my first rental today! :)

If I can help answer any questions or help anyone please feel free to reach out to me. 

"You are always a student, never a master. You have to keep moving forward." - Conrad Hall

EMPTY LOT MONEY PIT UPDATE

BBVA finally responded to my hardship request to lower the principle or take back the loan on the lot. The underwriters are now stating that I do not have enough income to make the payments so they cannot modify or do anything with loan. 

The funny thing is that six months ago they would not modify the loan because I made to much. Now that I am self employed they will not do anything because I make to little. I have not missed any payments but it seems that is what they are encouraging borrowers to do before they will act. 

The service department said I may appeal the decision with any new information that may have changed.

I now believe it is a waste of time to try and negotiate with the banks or at-least in this case it was. 

PLAN B: Find a builder and throw a house on the lot and try to sell it

Plan C: Let the lot go into foreclosure and bite the bullet that my credit score will take

EMPTY LOT MONEY PIT UPDATE

BBVA finally responded to my hardship request to lower the principle or take back the loan on the lot. The underwriters are now stating that I do not have enough income to make the payments so they cannot modify or do anything with loan. 

The funny thing is that six months ago they would not modify the loan because I made to much. Now that I am self employed they will not do anything because I make to little. I have not missed any payments but it seems that is what they are encouraging borrowers to do before they will act. 

The service department said I may appeal the decision with any new information that may have changed.

I now believe it is a waste of time to try and negotiate with the banks or at-least in this case it was. 

PLAN B: Find a builder and throw a house on the lot and try to sell it that way. 

PLAN C: Let it go into foreclosure and bite the bullet regarding my credit score. 

I am trying to decide on which company to use for a checkbook controlled solo 401K. I have read most of the discussions and cannot find a clear winner. I already have an Equity Trust account with an old Roth IRA but they do not offer checkbook control. I am rolling 401k over from a previous employer to fund the SD solo 401k. I am self employed with two other businesses so the checkbook option shouldn't be a problem.

I am looking at the following.

iRA123 or Safeguard, Sense Financial, Broad Financial, and IRA financial group.

If there are any better companies please let me know. I am reviewing them all (due diligence). 

Thanks in advance. 

James

David W.,

I know, I know :( 

My wife hates it out there because of the distance. There are some really nice homes there were built recently. Probably because they were in the same situation as me. I wouldnt mind building a custom home there if my bank works with me. Hell I may even look into some of the tax deed sales in the area. The HOA is 83 per month.

It looked like such a good deal in 2007. 

Pat M,

I am trying to negotiate with the bank (BBVA) to cram down the principle as David suggested. The underwriters have my hardship letter situation under review. I am doubtful they will do anything unless I short sell. 

I will post the results.

James

Unfortunately its a planned community with a HOA. I like the idea of a spec home but there is always the risk of getting stuck with it. Lots of options but no clear winner.

  Thanks everyone!. I'm going to use all the great advice and push hard for a resolution to this sinking ship. I've always been able to make the bills, pay the loans and still have a comfortable savings. Since I started looking at the world through an investors eyes (thanks to Mr. Kiyosaki) I realized I was the sucker making money for others.  I will chalk this money pit lot up as a learning experience and move on to better investments.

When I do finally get this resolved I will share the story with everyone on PB.

Thanks again,  James

Ouch! I thought this was a friendly forum. Just kidding. I would like to avoid a short sale and figure out a better way to get rid of this albatross. Call me old fashion but I don't want a short sell on my credit reports.

As Maxwell mentioned a lot of people bought into this community. Some are biting the bullet and building there. My wife hates that option. 

Thanks again for responses. Maybe someone has a trick up their sleeve. 

I only posting this for general thoughts and hope there is something I haven't thought of. I am not asking for legal advice just opinions if you were me. Any feedback would be appreciated. 

Ok here's my little situation. In 2007 purchased an 7.7 acre "estate lot" in the new Jacksonville Ranch Club equestrian community. Like most people I didn't realize the real estate bubble would pop and thought it would be a great investment. I financed the lot with a conventional loan thinking I would be easy to resell. 

Paid 175,000.00   Its on a 10 year loan at 6.5 interest.   I still owe 110,000 today with a 1,700 monthly payment. 

A lot of investors purchased land there and are in the same situation. A few families have build homes but its mostly a nicely planned out ghost community. 

I had it for sale since I purchased it. It is only worth maybe 40k. I could keep paying and hope for the best. I could reach out to builders and try and negotiate a deal for a spec home (risky). I have offered owner financing but that difficult on a lot.

How would a savvy investor turn this sinking ship around?