Posted by James Harris on September 07, 2009 at 13:07:22:
Where’s part 3?
“Ace” out the Banks… - Posted by Michael Morrongiello
Posted by Michael Morrongiello on August 27, 2009 at 24:14:41:
In today’s tight credit market, new far more stringent lending guidelines, and crazy appraisal requirments more and more investors who are trying to sell their properties to get back to a cash position (and liquidity) are struggling.
While there are still FHA, VA, and conventional loan products out there for borrowers. Regardless of whether the specific loan calls for it or not- Many lenders are following in lockstep faashion certain rules and regulations which create minimum property title holding requirments and the new HVCC - Home Valuation Code of Conduct appraisal issues.
There is an alternative- CUT OUT THE LENDERS and start creating your own financing to get some of your properties sold.
YES, I am referring to seller financing or seller carryback financing.
In some future posts I will elaborate on HOW TO “ace” out the lenders and continue to BUY and SELL.
Best to your success;
Michael Morrongiello
Re: “Ace” out the Banks… - Posted by James Harris
Posted by James Harris on September 05, 2009 at 17:01:53:
Mike, maybe you can help me. I am looking into purchasing non performing notes from the bank(s). What is the best way to get to the person at any bank that handles these notes? I’m not looking to do bulk transactions, that’s way out of my league for right now. My “thoughts” are to purchase the notes at a deep discount, obtain hard money or private money to buy these notes, then perhaps sell these notes after some seasoning. Please advise.
Re: “Ace” out the Banks… - Posted by Lynn (FL)
Posted by Lynn (FL) on August 27, 2009 at 15:13:59:
Mike,
Is this going to be like an update to your “Unity of Real Estate & ‘Paper’” home study course?
Lynn (FL)
Non performing loans… - Posted by Michael Morrongiello
Posted by Michael Morrongiello on September 05, 2009 at 17:11:17:
James:
For the Most part FORGET about going directly to the banks to buy “onesey, twosey” non performing loan accounts.
While there are some exceptions - most lenders are selling these assets in BULK at discounts to other firms who have the necessary capital to buy them, service them, scrub them, and in many cases RE-TRADE or SELL them to somebody like YOU who wishes to buy one or two bad loan accounts.
This is who you should deal with at the level you are suggesting.
I will mention a few sites, names, etc. which are by NO MEANS an endorsement of any kind;
St. Ives Atlantic Capital, ARCH Funding, Loanmarket.net
Kondaur Capital, etc. are a few that come to mind.
Continued best to your success;
Michael Morrongiello
Paper Practioner
www.sunvestinc.com
Author of the following home study courses;
Paper Into Cash - The Convertible Currency - How to Effectively Create Marketable Real Estate Notes
&
The Unity of Real Estate & “Paper” - Advanced techniques for both the acquisition and disposition of properties using Real Estate “paper”
Re: “Ace” out the Banks… - Posted by Michael Morrongiello
Posted by Michael Morrongiello on September 05, 2009 at 17:14:17:
Lynn:
No, just a recent transaction we’ve been involved in which will illustrate the POWER of understanding “paper” and how it can be creatively be used in this marketplace. The Unity of Real Estate & “paper” home study course contains approx. 30 different case studies of WHERE a PROBLEM was Identified between a property seller and buyer, a SOLUTION was formulated involving “paper” and alternative financing, and the BENIFITS enumerated to each of the parties while also providing the actual calculations.
Continued best to your success;
Michael Morrongiello
Paper Practioner
www.sunvestinc.com
Author of the following home study courses;
Paper Into Cash - The Convertible Currency - How to Effectively Create Marketable Real Estate Notes
&
The Unity of Real Estate & “Paper” - Advanced techniques for both the acquisition and disposition of properties using Real Estate “paper”
Re: Non performing loans… - Posted by Rob Robson
Posted by Rob Robson on October 29, 2009 at 20:02:48:
I am would like to purchase bulk portfolio’s of nonperforming notes from banks. I am looking for about 3,000 specific properties. Do you know any companies or individuals that have experience brokering these type of deals?
Re: “Ace” out the Banks…PART TWO - Posted by Michael Morrongiello
Posted by Michael Morrongiello on September 06, 2009 at 20:55:36:
PART TWO
Continued from Part 1…
In addition to the appraisal issues for any potential buyers, this property was also a townhome type property with an HOA-homeowners association.
New restrictions are now taking effect for Condo’s, Townhomes, and other properties subject to an HOA.
They deal with the # of renters (investor owned units) Versus owner occupied units within a complex and HOA.
They also deal with the solvency of the HOA and whether there is greater than 20% rate of delinquencies involving the HOA collecting its monthly dues from the homeowners and HOA members.
Recently FHA has decided to eliminate so called “spot approvals” for a condo in a project where the buyer is trying to obtain an FHA type loan.
Given all of the above we decided it was not worth the time,uncertainty, or RISK in selling this property to a borrower who decides that they want to go with FHA financing.
We Chose a buyer who was to obtain some Credit Union financing, along with a special municipality grant to the buyer enabling them to have long term low interest financing.
The buyer wanted this unit badly.
And so the appraisal was ordered.
A few days later it came back in with a value of $70,000.00. - Remember this is unit we are into for around $60,000.00 and where we have had multiple offers at the $120,000.00 property asking price and above.
We reviewed the appraisal and could see that it was filled with inaccuracies. The appraisal was some out of the area appraiser hired by the “AMC” - appraisal management company under the recent HVCC guidelines to do the evaluation.
They had us incorrectl listed as an REO seller - when we had purchased the property about a month earlier from an REO lender.
The comps used were ALL other REO comp sales, or foreclosures, or Short Sales.
We pointed all of this out to the credit union lender who agreed to have another appraisal done. A few days later they informed us that they gave the initial appraiser the opportunity to simply correct his misinformation and resubmit the appraisal report.
Guess what VALUE the re-submitted report came back at this 2nd time around?
Did you guess the SAME $70,000.00 value as before?
YEP, all this appraiser did was correct the report descrepancies and simply keep the value the same.
Needless to say the escrow fell apart a few days later. The townhome was not longer PENDING But once again ACTIVE in the MLS system.
Within days we received 3 more offers to purchase the unit. One at LESS< than the $120,000.00 asking and listed MLS price, One at the listed price - but where the buyer wanted to get FHA financing (No Thanks!) and another offer from these buyers who were willing to pay $160,000.00 for the $120K Listed property and who had $30,000.00 CASH to put down as a down payment.
They were asking for 3.5 Points (approx. $6,200.00) to be credited back to them.
The PROBLEM- they also wanted to go FHA and obtain a $120,000.00 FHA Loan with an interest rate to not exceed 5.65% for a 360 month FIXED interest rate financing.
We really liked their down payment of $30,000.00 and they reportedly also had STRONG credit and credit scores (680+ to 700+)
BUT we had been down this road before and did not want to go FHA because of the seasoning issues and appraisal concerns.
What did we decide to do?
Go to PART THREE (3) of this Deal Story to find out
Continued best to your success;
Michael Morrongiello
Paper Practioner
www.sunvestinc.com
Author of the following home study courses;
Paper Into Cash - The Convertible Currency - How to Effectively Create Marketable Real Estate Notes
&
The Unity of Real Estate & “Paper” - Advanced techniques for both the acquisition and disposition of properties using Real Estate "paper