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Attny response of me Using Land Trust & Simul. Close

Home Forums General EHTrust/EHT Topics and Creative Real Estate Financing Attny response of me Using Land Trust & Simul. Close

This topic contains 36 replies, has 0 voices, and was last updated by Avatar of restequi restequi 11 years, 9 months ago.

Viewing 15 posts - 16 through 30 (of 38 total)
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  • #23500
    Avatar of jerry carey
    jerry carey
    Member

    Scott:

    Thanks again!
    As Alvin said … I learned something new from this thread … I had no idea a Hard Money lender would make this type of loan! That’s the part I couldn’t understand before. :D

    Jerry Carey

    #23501

    @areyes wrote:

    great stuff guys. learned a couple of new stuff today from this thread.

    Two things I learned:

    One: There are a handful of people that could have answered these questions ( maybe, and if, so, would they ? ).

    Secondly: One who knows, did.

    Be glad it’s here to see, because it’s not on any CD, DVD, Seminar, “Coaching Session”, or any other Web-Site on the Internet, for any amount of money, unless someone like Scott is your friend, like he is to us here.

    Or, if you do search for it, you’ll get too big a percentage of crap to do you any good and not what’s right and what really works, like this; Not that I know of.

    And I’ve paid dearly, in more ways than one, to try to find out and even knew people that could have told me AND Paid them $500 a month consulting fee ( on top of their $1,000′s in materials, ie., can you say,”Up-Sale” ?.)

    They said I’m not the closing agent, so I don’t need to know.

    When, I saw those questions being asked, I hoped Scott would plow through them, because, of all people, I figured he would know how to straighten this mess out somehow and actually know:

    HOW TO FUND and CLOSE a SHORT SALE.

    And, there it is.

    Thanks, once again, MR. MOYES.

    #23502
    Avatar of homesavers
    NULL
    Member

    This is a great strategy Scott. My question to you is do we have access to your Hard Money lender? Most hard money lenders allow for 70 Percent LTV max. plus charge alot of points up front. Do you find lenders in first place are taking that much of a discount? This is why they like Realtors. They keep the price high by listing the property at a slight discount from area Comps.
    So the way I understand this is:
    1. Must find a property with greater than 30 percent plus equity. (can be “created” by shorting 2nd if any down to nothing) does not work on over-encumbered properties. That is why they are “shorting”
    2. Must find Hard Money lender that will lend on the property only based upon appraised value, AVM or BPO., i.e., No credit , no qualifying
    3. Must find an end buyer to purchase close to Retail or discount between ~80-100 Percent of Appraised value. Leaving 10 percent to play with in the middle.
    4. Seller that is willing to take the 30 percent discount off his current mortgage as taxable income.
    5. Service the high interest Hard Money loan until you find number 3 above.

    Did I miss anything? Alot of hoops to jump through Scott but it could work just like everything else in the creative Real Estate world.

    #23503

    Thanks Scott. I appreciate the time you spend explaining these things in great detail. You’re my NARS hero :)

    #23504
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    @homesavers wrote:

    This is a great strategy Scott. My question to you is do we have access to your Hard Money lender?

    No, not my personal one, but I’ll bet you can find one that works just like mine. If you need help talking to a “Private” or Hard Money Lender, just let me know. Their funds are only used for virtually minutes until the closing of the End Buyer in the next room, who’s financing is already in place, approved and ready to close.

    @homesavers wrote:

    Most hard money lenders allow for 70 Percent LTV max. plus charge alot of points up front. Do you find lenders in first place are taking that much of a discount? This is why they like Realtors. They keep the price high by listing the property at a slight discount from area Comps.

    You are right, “Most” HM Lenders do have guide lines based on “traditional” transactions. Well, this ain’t traditional. My guy lets me use his funds for as little as 1 point per transaction. Nice huh? There are others who will let me use there funds for as much as 10 points per deal. Since there is no lag time there is no further interest charges or payments etc.

    @homesavers wrote:

    So the way I understand this is:
    1. Must find a property with greater than 30 percent plus equity. (can be “created” by shorting 2nd if any down to nothing) does not work on over-encumbered properties. That is why they are “shorting”

    Whats this “must” with greater than 30%? I’ve never said that. You may be referring to another post I made about BIG houses. Doing Short Sales has nothing to do with that. It doesn’t matter what you negotiate on your Short Sale using this method. Of course you need to negotiate enough to be worth it.

    @homesavers wrote:

    2. Must find Hard Money lender that will lend on the property only based upon appraised value, AVM or BPO., i.e., No credit , no qualifying

    Must find Money period. It doesn’t have to be a “Hard Money” Lender. It can just be a friend or other private money. It is based on your deal, not any AVMs, BPOs, BVDs, MVPs, MIAs, or any other accronim you can come up with. It is soley based on your deal. Do you or do you not have an end buyer ready to close and is the private money source going to get paid directly from that closing, today?

    @homesavers wrote:

    3. Must find an end buyer to purchase close to Retail or discount between ~80-100 Percent of Appraised value. Leaving 10 percent to play with in the middle.

    Must find End Buyer that purchases at a price that leaves you some profit, regardless of what that is. While you’re negotiating for the Short Sale, you are marketing for your buyer. I use an Auction System or use my network.

    @homesavers wrote:

    4. Seller that is willing to take the 30 percent discount off his current mortgage as taxable income.

    Again, I have no clue where you got 30%. Most Short Sales are averaging 82% of Value. Really good negotiators average 65% to 75% of Value, but that is rare regardless of what those Short Sale Gurus want you to believe.

    Like I said, I OUTSOURCE and use a Short Sale Specialist. My time is too valuable to be talking to some minimum wage hack about a million dollar deal.

    @homesavers wrote:

    5. Service the high interest Hard Money loan until you find number 3 above.

    Nope, no service at all. You get and repay the funds all in the same day.

    @homesavers wrote:

    Did I miss anything? Alot of hoops to jump through Scott but it could work just like everything else in the creative Real Estate world.

    A “System” is designed so you don’t have to jump through hoops. A System is designed to work over and over again. A System is designed to make it easy to do. What I don’t get is why most Wannabes can’t follow a system. They pay all this money to learn a system and then when they fail, they blame the system. It’s not the system that didn’t work, it was they how did work the system.

    If I were packaging this and selling it as a system, here is how my “Guarantee” would work. My Guarantee is… if you don’t use it, it won’t work.

    #23505
    Avatar of gshepherd
    gshepherd
    Member

    I’d like to try this on a short sale, but in the spirit of investing in RE without any of my own cash I don’t really want to invest up to $3000 (NARS docs, trustee fee etc) on a deal that may not be accepted.

    Quite often investors will have the sellers deed the title to them. So can I just have the sellers deed the title to my local trustee and file the deed?

    Then I start my negotiations with the bank. If they accept my short sale offer then I can set up the trust etc and become a beneficiary.

    Comments?
    Thanks.

    #23506
    Avatar of mtnwizard49
    mtnwizard49
    Member

    How are you going to have them deed the property to your Trustee BEFORE he is your trustee, and before a trust has been established?

    #23507
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    @mtnwizard49 wrote:

    How are you going to have them deed the property to your Trustee BEFORE he is your trustee, and before a trust has been established?

    Your not. It’s the first thing you do. Create the Trust and name the Trustee. Then vest the property to the Trustee, go negotiate the Short Sale, pay off the encumbrances and sell the property from the Trust/Trustee to your end buyer.

    #23508
    Avatar of homesavers
    NULL
    Member

    Can someone help me pencil this one out? Laying the Trust setup aside you need a new loan to payoff all the existing encumbrances (or Cash). This requires alot of equity for the “Hard Money” lender-min 20 percent from appraised value or 80 LTV. Most Short Sales have no equity that is why they are “short” Sorry this strategy just does not pencil out for me.
    You need lots of equity to play this game.

    #23509
    Avatar of jerry carey
    jerry carey
    Member

    Homesavers:

    In your earlier post and this one to which I’m responding, you’ve missed the point. These hard money loans that Scott Moyes refers to are special circumstance “bridge loans” for one day! They do not fall within the scope of normal hard money lender’s credit and LTV perameters!

    Not all hard money lenders will make them … but some are willing :!:

    Jerry Carey

    #23510
    Avatar of homesavers
    NULL
    Member

    Makes sense just need to find the lender, the RB, the Seller with equity in pre-foreclosure and I got it made. :shock:

    #23511
    Avatar of areyes
    areyes
    Member

    @homesavers wrote:

    Makes sense just need to find the lender, the RB, the Seller with equity in pre-foreclosure and I got it made. :shock:

    doesnt get any easier than that! hahahaha :wink:

    #23512
    Avatar of jerry carey
    jerry carey
    Member

    Home savers … I really don’t think you’ve got it yet!

    You stated:

    Makes sense just need to find the lender, the RB, the Seller with equity in pre-foreclosure and I got it made.

    First, there is no Resident Beneficiary (RB) at all in the transaction!

    Second, there is no Seller with equity in pre-foreclosure in the transaction!

    There is an over encumbered seller (foreclosure or not) on whose property a lender might take a short-sale deal, thereby creating the equity (profit) in the transaction.

    Find this type of seller, a final end purchaser for cash or with ready credit, and set up the trust, negotiate the short sale, puchase of the property through Trust using the previously discussed “hard money” loan, and immediatesly re-sell through the trust to the end buyer for a higher price, with the difference being your profit!

    Jerry Carey

    #23513
    Avatar of homesavers
    NULL
    Member

    Oh I see I just needed to take my EHT no credit, no qualifying glasses off.
    This is basically the same thing Realtors are doing except you are making more than the 4 percent you have to split. It will work if you find a qualified end buyer with cash and/or credit. But isn’t that what everyone is looking for?

    #23514
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    @homesavers wrote:

    But isn’t that what everyone is looking for?

    No, not necessarily, thus the NARS EHTrust System of Real Estate Conveyance!

    The difference between Us (NARSonians) and others finding Cash or Credit Buyers, is the options we are able to extend to them via the EHTrust.

    I don’t know of any other method or system that allows you to name the end buyer one of the beneficiaries of the trust and have them also receive part of the net profit and proceeds of the sale as a co-beneficiary, not a buyer, which illegal as hell. This amounts to the ONLY legal way, as a beneficiary, not a buyer, that they can recoup all or part of a required down payment.

Viewing 15 posts - 16 through 30 (of 38 total)

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