All Forum Posts by: Tiger M.

I would always use an LLC. Do you want your personal name on a history chain that carries potential exposure? I have had really great returns from seconds and hold many performing seconds, both with and without equity. Just make sure you buy them at the proper price so the risk is mitigated. There is a guy in TX @Christopher Winkler that I have seen does a good job of finding solid notes. He may be a good contact since your close.

@Christopher Winkler is a good source for for notes. I have seen him doing them with IRA's. Maybe he will chime in.

@Troy Fisher is spot on about the HOA 4-plex issue. Your damned if you do and damned if you don't. The cluster zoning that most small multi building are in have created pockets of blight though out the city. After managing them for ourselves and clients over 25 years, I can state the biggest challenge of not having an HOA. You may have the nicest building on the block but it doesn't matter if the owner next to you chooses to slum the building, allow cars on blocks in the parking area, allows 4 dogs per unit and doesn't screen tenants. How can you get and keep good long term tenants when you do everything correct and the owners around you don't? And it may not be that way when you purchase but can change with time quickly. Then what do you do?

If you have the HOA as Troy stated, you loose control over fixed expenses to the governing board but you eliminate the bad owner issues.

Small investors don't have many options. Focus Group has two large apt complexes(over 200 units) under construction and Picerne Dev already offered to buy them at a 5.5 CAP. So the newer product being built takes deep pockets.

You asked about areas. These issues are city wide. The only real "change" is happening downtown as the area regentrifies.  Downtown projects may 2016 will give you a snap shot of the current downtown projects. Decent, rehabbed Multi family is desperately needed in the area to sustain the workers that want to live in the area and not pay $1500/month in a tower rental. There are at least 10 restaurants and urban lounges gearing for opening in the next 6-9 months because of the success of those in the area are having that took a chance on the revitalization early on. Makers and Finders and HopNutz in the 18b Arts District are flourishing. Their employees want to live in the area and are unable to find reasonable housing.

this is a great place to start Seller finance and Dodd Frank your probably exempt if its the only loan done that year

@Percy Matsunaga

@Dave Van Horn is a great place to start. His company is PPR and he can lead you in a sound direction if looking at nonperforming notes. As @Paul Birkett mentioned, notes are an area filled with potential  land mines and shouldn't be attempted until you fully understand all facets. Get the book Invest in Debt by Jimmy Napier so you can learn about the different aspects of notes.

You can buy me lunch next time your in Vegas! 

So remember PM's are contracted to protect the clients information. If some calls us and states they wanna buy rented properties, no matter the seller situation, we call you first so we get paid too. There are always landlords hitting the financial rocks of life. They usually let us know first there is an issue. If you showed me you have the ability to buy, I wouldn't even need you to buy lunch to send you deals. Just lay your cards on the table.

@Joel Owens You always nail it. I have tried to make sense of the fast food NNN's for 15 years and I guess I'm just not passive enough. Would be easier to park in treasury bills and earn next to nothing than having the responsibility and earn next to nothing.

Im not saying spend legal fees, I'm saying pay your HOA fees before they wipe you out. There is no golden goose here to wipe out the mortgage. Are you paying the other liens? Firsts are filing foreclosure at 90 days late now. If they see the alienation on the title it could be sooner than that.

@Joel Owens so what happens with these great stable NNN leases purchased at a 4.5 CAP when the market rolls? How is the investor covered should they want to sell and rates have hit 7.5%? Whats the best protection long term?

Pay off the HOA or you will be wiped out with the other title interests. If the HOA sells the lien and you buy it at auction, you still have to sue to quiet title to wipe out the liens, like a first. Most show up in court and fight you. Sometimes they loose, sometimes they win. That's the risk of letting a black robed person make the decision.