All Forum Posts by: Eric M.

@Humberto Quiroz That fee is pretty reasonable, frankly. There's no doubt there are some forms out there, but if his time saves you even one deal (probably something like 1/4 or 1/8 of a deal) then it's worth it. If you're sure you know what you're doing, maybe it's not worth it, but the fee is pretty reasonable for the work product and the advice.

Thank you @Jean Bolger and @Wayne Brooks for your comments. Very much appreciated!

Also, just for reference, here is a resources on which states are "generally" recourse v. non-recourse.

http://www.trulia.com/blog/shanethemortgageman/2011/12/foreclosure_laws_state_by_state

(apparently copied from the Federal Housing Finance Agency). I think another thing to be understood here is that deficiency judgments are probably only going to be in play if the property is "foreclosed" upon and there is not enough equity to pay it off.

Correct me if wrong, but that would only happen if (1) certain funds had been used from the HELOC (2) the house had lost value, and (3) foreclosure or a lien was necessary to collect the debt.

@Jean Bolger Thanks. Here it is:

Family member and I already jointly own another property. We want to obtain a HELOC using that property to use for REI. Other than co-signing on HELOC, family member does nothing else in the real estate business.

What percentage is fair for the co-signer of the HELOC under that scenario?

@Wayne Brooks Thanks. A Google search seems to indicate that a HELOC can be recourse or non-recourse, and it depends on state law.

So, to anyone who can help, given that, would the answer to the original question change? What percent is appropriate for non-recourse? What percent is appropriate for a recourse borrower like the family member I describe?

@Wayne Brooks I am (perilously?) trusting Wikipedia:

"Non-recourse debt or a non-recourse loan is a secured loan (debt) that is secured by a pledge of collateral, typically real property, but for which the borrower is not personally liable."

Because the home (real property) is supporting the HELOC as the collateral, I reasonably believed it was non-recourse. I am happy to accept differing points of view, however!

I agree with Tom. If I had a nickel for every real estate agent that landed a contract based on an inflated CMA, I'd be a gazillionaire. I say that as a licensed agent in Maryland.

Some mean well, and just get it wrong. Others know it's wrong, but want the contract.

@Kevin Cardinale Maybe wholesaling is an option for awhile if the properties are good? I'm sure with some effort, you may find HM investors, but you might not get the best deal under the sun. Regardless, stay motivated!

@James Z. I made it through all that. Sorry about your father, but happy he'll live on in your upcoming ventures. Plenty of DC area people here. I'm new as well and it's been a good resource. Welcome to the site!

Bumping this up. If anyone has thoughts, they would be very much appreciated!