All Forum Posts by: Steven Duval

I have checked and they are registered with the State of California, and there are no complaints with the BBB. Other than that and their website there isn't much info. I talked to one of the manager's today and feel more comfortable with their business plan.
They use investor's money to purchase the portfolios, manage the properties and then they keep 40% of the profit when the properties are sold. It makes sense that it is possible to buy properties in bulk and get a better deal than just buying one property at a time. They refinance the properties after they have been rehabbed and rented at 60% LTV. The mortgage proceeds are returned to the investors and cash flow services the mortgage note.
Actually the more I read the business plan and fine print the more I understand how they make money and how I would make money. Seems fairly straight forward unless anyone knows if I could be responsible for the mortgages on the properties if there was a default. The manager said the only recourse the bank would have is foreclosure in a worst case scenario. Worst case scenario is the bank could take back the properties in a foreclosure, and would have no recourse on member investors. Any thoughts?

I checked out a couple of REITS, the reason that I am looking more into this company is the plan to return most of the original investment. Their literature says that after they have rented out the portfolio that I would be in they are going to refinance the properties and return the proceeds to the investors. (the estimate is that they will be able to return 60% to 100% of the original amount invested within 18-24 months) I haven't found anything that is planning to return so much of the original investment right away.
I guess a big worry I have is if the company gets a mortgage on the properties and can't make the payments, will I be liable for the mortgage since they gave me the money from the mortgage? Almost seems to good to be true in this market to invest in a REO portfolio, get most of my money back in 2 yrs, get the tax benefits during the holding period and still get any profits from the gains in 5-7 years.
Am I allowed to post the website here? Maybe someone with more savy than me would contact them and ferret out any risks that I haven't seen yet. Thanks

I am thinking of investing in a CA company that buys bulk foreclosures by pooling investors money. They rent out all the properties for 5-8 years then sell it. This is new to me so if anyone has any ideas on things I should look for before I invest it would be really helpful.