All Forum Posts by: Kathy Utiss

I have a great presentation put together. What I have put together we've also already had approved  with the necessary credentialed people with the ability to actually perform :)  If anyone is really interested this is the difference in income for the lenders who do it :)  Of course if you ask me its an ingenious concept that can rewrite many people's lives...But ya I'm just a wannabe :)

Hope you can tell me if this is possible or not. 

Know of property nicely discounted below appraised value (66% ltv)

Can one use transactional funds to pay off seller

Then create a note(refinance) as they're the new owner of property

Then sell off the note? Is there a seasoning requirement? 

This is for a commercial note creation 1st lien position.

No owner financing The note will debt service well. Even at a 75% calculation mentioned for a DTI

In my case as a principal I've been in both the banking and transportation industry since before 1994. I've been rebuilding my credit. My last bk will fall off my cbr this year. My scores are at 600/621/582

I also have an associate willing to go on loan with me if necessary with a score of 770 or above. She was a school teacher in Texas. In my case to better my credit I need more income. A survival money job just doesn't do this. Hence, why I've looked many years for a good opportunity. I also have another associate with a 650 score if that would work as well. 

We've also found a few properties that make sense. Maybe, not as nicely discounted as this property. However, they make sense with the asking price and the NOI to adequately debt service.

All answers are so appreciated. :)

The way it sits I don't think it's very valuable for any investor. I was being conservative. My friend would have said to make an offer of like $5,410,000 a hair cut of $4,585,000. He does his pricing based just on the NOI. Would love for someone to tell me what they consider a good DTI on commercial properties :) With what you told me about the area my friends pricing sounds more spot on. I really don't think the numbers are that great on the property. But it is about the only thing I saw that may have potential when I looked from over here in St. Louis. Good to share view points so we all gain more knowledge :)

I would go FHA and look for down payment assistance. There are programs that pay the 3%. Some are forgivable after 5 years. It's best to keep what you can so you don't end up over leveraged starting out. Also, maybe look for a duplex.

Man this is so confusing to me. 

In the first post you list all the rents and it comes out from what I could figure to be $44,000 a month. Maybe I'm off a thousand. However, that is a big difference $62,500 vs $44,000 a month or $18,500 a month. Curious with it just being nine units what the real potential is to make that extra income monthly. Not sure how you debt service this for $240,000 a year when just on the interest at a min of 3% is $170,000 a year. ($170,000/12=$14,166 per month. Then the principal on $5,100,000/360=$14,166 a month= combined $28,332 a month. Not $20,000 a month.  

If the true income is $528,000 vs. $750,000 I would definitely be saying no. Even at $750,000 a year in income the above is just to debt service even with 40% down on $8.5 m. Besides debt service you still have taxes which hopefully is figured in to that $140,000 a year. Not to mention your 2% loss on rents. Depending on what the actual NOI is rather $528,000 or $750,000 an associate of mine says offer should be 10x the NOI. So in this case if NOI is truly $528,000 offer should be $5,280,000. Then re evaluate your numbers and see if it makes better sense to make an offer or not.

I'd be saying NO. One of my 1st offers in a long time I'm working on now the numbers are like this.

Appraised Value $1,600,000

Asking price $1,100,000

NOI $525,000

Sweet mixed use property :) Numbers like this can make sense up to like $5 million. Always principal+ interest. Then taxes usually on commercial are figured into the monthly numbers. Residential offers if wholesaling usually most investors want down to 60% of appraised value.

Good Luck :)

Why not jv with the buyer for a larger share? Why give away your time? Or do it your self...Already know the HML :) Optimism :)

I'm wondering if maybe they will do a Fee Policy...When one closes on property the title insurance only protects the lienholders interest in the property you take a loan out on. A fee policy you pay for extra at closing to protect you as a investor/homeowner. Otherwise you could be had! They usually don't tell you this when you close. https://www.hurwitzfine.com/bl...

On Fb there is a group called St. Louis Real Estate Investors that usually has people who will know. I know of a couple of people but of course would have to communicate between people to get answers. I'm pretty well versed in real estate and the STL arena. As someone told me investors go street by street in the city vs zip code by zip code Ugh Lol :) good at finding them though :) As they say I have the best of both worlds. Have the banking experience with signatory authority. Versed in title work, pictures, communicating :) truly a rarity sometimes when it comes to negotiating debts :) 

I'm in the Lou as well. How to top the advice you've been given? When searching for the money find the trustee websites vs auction.com or newspaper publications. There is also Facebook market place/Craigslist. Use your google search tool on the pic of home to find out how many are listing it, and at what price,and such. It get's interesting who claims who can do what in this industry. Make sure if you figure out the numbers are or could be viable visit the property! Or have someone you know visit. Or hire someone to take pics of property. 

I would be trying to find out if the county the property is located in let's me view records online concerning the property. The best place I know to find out the quickest nationally is at netronline.com.  I'd also be opening a pacer account. Pacer is for the search of bankruptcy cases. Usually, before a home is sold at auction the investors/note holders/note owners may have already entertained selling the note at a discount. Many servicers do this before sale. Many don't know who is doing what. Many entities are involved in recording fraud against many. 

It makes the industry difficult for many. Foreclosure trustees who receive accounts for collection(refuse to get collectors title search machines!) Can you imagine calling someone demanding money, and not have confidence in what your able to tell someone? Could you imagine your employer at the acceptance of position telling you yes you have the ability to do xyz for xyz, and have it not be true?

I took my signatory signature pretty seriously with a fiduciary responsibility to represent the truth. That if I signed my name to a debt settlement or note sale that I had done my due diligence. As I often performed the managerial reviews at agency for best worked efforts before closing. I actually moved about $100,000 to $150,000 per month in recovery fees monthly for agency.  This was for accounts that had been taken as a write off for whatever reason. 

  It's disheartening to be stripped of everything when you always attempted to treat others with the same dignity, and respect you'd hope to get out of someone. Everyone, needs many things to survive in this world. We all agree an education is imperative. Work ethic is a necessity as well. Everybody wants to be paid. But many are not in the business of building people. 

How many times my boss would be like the client placed it here. They know it's here. NOW COLLECT IT! Usually I did to. But I always attempted to be honest, and fair. As it was my job to motivate you to pay me how much? I think I'd better be pretty precise with my 1st contact with you. A home or property is the most important asset many own. Yet the people who work to pay for the asset are not important to many. 

How many times I'd have to call my employers client to HAVE ACCOUNT YANKED to AVOID LAWSUITS! The board of directors for the employer who lied about their written contractual ability to do things has been sued multiple times producing/enforcing fraud for just about every servicer in America!

  Hell in my life they've successfully for over 80 years claimed my family never existed! Along, with make $200 million plus assets! Yet I'm the STUPID ONE! I never would have suspected so many involved in all of this. Be VERY CAREFUL. True law, and order against many is not what you hear, see, or read in many outlets. While many will claim we're supposed to have protection in courts many times it's not given. Benefit of doubt to tell the truth is unheard of for many.  The reality of this life, and world is difficult without credible information! Can you imagine having to do a DNA test to get to the bottom of the many lies we're told?