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14 November 2007 | 11 replies
Jared,Sounds like you signed up for the accelerated learning program!
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26 December 2007 | 12 replies
In almost every consumer security instrument I have seen there are two clauses which are always in them:1. a "due on sale clause" the language reads that in the event the parties who sign the security instrument sell or convey their interest to another person (a jural person) or entity it will allow the lender to hold the parties in default, and trigger its remedies... acceleration, lawsuit, and possibly an action at equity to rescind the conveyance... nasty stuff in general...Its hard to put to paper... easy to verbally explain...2.
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17 October 2011 | 10 replies
Lenders have more to worry about in Las Vegas than "due-on-sale clause violations".As long as this loan remains "current & performing";...you have a better chance of "hitting the jackpot" at Caesars Palace, than having the lender accelerate an otherwise performing loan in good standing for a violation in the "due-on-sale clause".Spending a few hundred dollars with a good attorney that specializes in these types of land contracts should be worth the money. (...try finding these types of lawyers who are affiliated with your local Las Vegas Real Estate Investment Club).A lawyer of this type can create a new, or review and update your trust/sales-agreement, land contract, etc.Here's a different twist:How about a back-up agreement and a back-up deed?
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9 July 2020 | 11 replies
Doing some light research on accelerated depreciation of rental R.E.
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26 November 2011 | 50 replies
On commercial properties there are many reasons why a properties full information is not disclosed.1.The property is a vacant REO building and has no numbers besides taxes.2.The bank or receiver took the property over recently and no data was given to them by the old property management company or by the previous owner for adversarial reasons.In these situations you price in the worst case scenarious to be safe.3.In commercial you get many off market properties because the seller doesn't want the sale made public.4.The seller has demanded that minimum info be listed on the listing and only when a buyer is qualified as credible and serious and has signed a confidentiality and disclosure disclosure agreement then the info will be shared.The seller might not want the information of how their property is operating to get into the competitions hands.I do agree that many investors will keep different reserves based on individual preferences.Where this comes in big though is there are industry averages where unless the buyer will be paying all cash or owner finance they will be getting a loan from a commercial lender.This commercial lender will price in reserves to the numbers and marketing costs because if the lender giving the loan has to foreclose they will operate it and value it based on their expenses and not the owner who self manages,does their own pest control,makes their own repairs,etc. to increase margins.This is a number one reason loans do not get funded.An investor shows a deal cash flowing 5,000 a month on a apartment building and the numbers are real.However the commercial lender comes to 3,500 a month cash flow after their analysis of how they would run it an dhow it would perform if they took the property back.This is why owner finance and putting little to no money down to preserve liquidity is the name of the game.Leveraging yourself into as many properties as possible UNDER THE RIGHT TERMS with smart growth taking advantage of the down markets is key.We have real estate niches for a reason.There are different flavors for everyone.It also depends on the investors goals.If they have millions already and are just trying to get a certain return and stay above inflation each year with not much headache then yes turnkey might be the answer for them.If you are going to do that I would go for triple net corporate rated tenants and collect mailbox money than deal with toilets,tenants,and termites,and eviction headaches.I deal with this on my apartments but my returns are way over 7 to 8%.So what you take on versus the expected return is key to doing a deal or not.I find generally landlords once they hit a certain age and life just get tired and want someone to take over their problems.This is when at 36 I still have gas in the tank and I am willing to take on big headaches for big returns.Later in life that might change what kind of portfolio I want to hold and grow.I personally stay away from buyers wanting these little houses for 35,000 that give off 700 a month rent.The investors are out of state and want you to micro-manage for them at 60 bucks a month and it's not worth it.I own many apartment units and even with a maintenance guy and a property manager living on site it can be very intensive to run correctly.It is not as easy as everyone thinks it is especially when most investors will be buying older buildings on value add deals.It's easy when a building is brand new and tenants want to sign up left and right and there are little to no repairs to speak of.When you buy new though you pay a premium for it.If you want to create wealth you need accelerated returns.I have really enjoyed this discussion so far.
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9 December 2011 | 10 replies
If property insurance lapses Lenders can do what's called "forced place insurance" on your mortgage.Generally the lenders buy the Cadillac plan that covers everything and escrows the payment into the total mortgage payment due.It is much cheaper for the borrower to have their own insurance then for the lender to force place it.He could always accelerate and foreclose depending on how costly and time consuming that is for that state.I would think foreclosing and accelerating the note would be the same motivation as when a tenant tells you a few more days and you will get the money and you file eviction and the money magically appears.It seems if he sends the foreclosure and default notice the buyer will know they are serious.
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31 July 2012 | 9 replies
We sold one of our cars and have reduced our monthly expenses to accelerate our savings and cash flow.So thanks again to the bigger pockets community for your input and for sharing your stories.
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10 March 2012 | 19 replies
For anyone that is new and takes the bull by the horns this event could really accelerate the chances for successes.
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6 February 2012 | 1 reply
If I just do it, what are the odds that they accelerate the loan?
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19 February 2012 | 27 replies
If we accelerate, Bernanke will tighten sooner than he forecast.