All Forum Posts by: Ted Schmidt

Bill, do you have a citation or link to the federal law that you are referring to and exactly what license does that law require?

The federal law that regulates foreclosure help services is know as the MARS rule. As Bill noted these rules were enacted to protect homeowners from unscrupulous bad actors.

The main take away from the rule enacted in 2010 is that it became illegal to ask for or collect a fee before the loan modification work it actually completed. As Bill correctly noted attorneys are exempt.

The rule does not establish license requirements and there is no federal licensing to be a "credit counselor".

If a person wants to file bankruptcy, they must attend a class by an approved "credit counseling agency" that is subject to state licensing. This has nothing to do with foreclosure help laws.

Be sure you understand the applicable laws and consult a real estate attorney in your state before you move forward with any real estate transaction or business model.

-Ted

"I am not an attorney, but I have played one on TV"

Dante,

I can help you work a lead in Cincinnati. My college buddy and REI partner is located there and if it's a good deal he will be all over it. Let me know some more details and if it looks good I will hook you up.

-Ted

@Brian Gibbons Great analysis and recommendations as always!

@Nathan Samuelson If you buy a property and occupy it, you are under no obligation to remain in the house until its sold regardless of the loan type FHA/VA 203K or conventional.

The way I like to structure 50/50 deals is this:

1. determine what you are splitting
2. agree to make each partner whole
3. split the profit 50:50

Lets say you find a house worth $100,000 and get a contract to buy it for $60,000. You don't have the $60,000 so you get a partner. The partner uses his money to buy the house. Later, the partnership sells the house for $100,000 resulting in a $40,000 profit. The partner that put up the money gets his $60,000 back and the partners each get $20,000 - 50% of the profit.

@J Scott: I have a track record of SEO successes with first place and first page web sites under several finance and real estate related search terms including these search terms:

• foreclosure leads
• short sale leads
• lenders compete
• rent to to own leads
• Loan modification leads
• commercial loan modification

Let me know what the project is and under what basis you want help.

@Walter Thompson:
It's no big secret, just not very common. All you do is get old loan mod leads, 60 day to 1 year old, call the people and ask if they were able to get the loan modified. If yes, let them know what you do and add them to your future sellers list. If no, ask if they might consider selling or if they are till trying to save it. If they still want to save it - save the lead for future seller lead and refer to an attorney. They will pay $250 for a client all day long. If they already lost the house, ask if they want help to remove it from their credit report - transfer to a credit repair company - that's $50 or more in your pocket.

@Alex Rivas I use old loan modification leads to find deals that no one else has.

What you do is offer to buy the note. First you need to determine the notes net present value. That is, the present value of the future cash flow that the note produces. After you know what the value of the note is then you can offer to purchase it at a discount and let being a note holder be your problem instead of his.

How to lock it? Same way you do with any property except you are buying a note secured by a deed of trust on the property.

Do you need money? Yes, otherwise its not a legal contract if there is no consideration.

Here is some meat

http://www.biggerpockets.com/files/category/contracts

@Armegi Gil

Do you have a call script? Do you know what you are going to say when they call? Before you get to the contract part - get good at collecting a lead. Once you have some leads - identify the problem and find a solution. When you have identified the solution then you need a contract that addresses the solution.

Here is a good place to start.

http://www.biggerpockets.com/renewsblog/2012/09/25/real-estate-purchase-contract/