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Short Term Flips in California

Home Forums General EHTrust/EHT Topics and Creative Real Estate Financing Short Term Flips in California

This topic contains 59 replies, has 0 voices, and was last updated by Avatar of areyes areyes 12 years, 5 months ago.

Viewing 15 posts - 16 through 30 (of 61 total)
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  • #28409
    Avatar of jerry carey
    jerry carey
    Member

    To all posters in this thread:

    Thanks for your input! Here’s my 2 cents worth on the topic.

    As was stated … NARS was established to do long term Traditional trransactions with a RB living in the property and doing a conventional purchase at the termination. This works and no-one, not even SoCalGal disputes this point!

    As Homesavers has said and what we all know to be true is that the R. E. Market today is primarily “Short Sales”. Scott Moyes has simply applied the Traditional long term Trust and simply shortened the the time when the Co-Beneficiary elects to exercise their right-of-first-refusal and elect to buy the property … perhaps minutes, hours, or days later! This is allowed by NARS Trusts and the Law :!: We refer to it as a Short-term NARS transaction!

    The problem arises when the underwriters of the End-Buyer Co-Beneficiary’s lender has “Seller Seasoning Issues”. This does not disparage NARS transactions, these seasoning issues apply to all sellers … trust or no trust, NARS trust or not! In fact, ignorant investors have improperly put trust transactions together and abused the process enough that now conforming lenders require 12 month seasoning for any trust :!: It is the right of any lender to say what their underwriting guide lines are and to whom they will or will not make loans.

    Instead of flogging this dead horse … why don’t we simply use non-conforming lenders who do not have any seasoning issues to close our transactions:?: These lenders are out there and loans to the end-buyer Beneficiary are avaialable :!: SoCalGal has posted that she has found these types of lenders and will e-mail the lender information privately … as was posted in another thread! She was chastized for advertising and this important info. posted on the board was deleted by the moderators.

    Let’s stop arguing and debating whether or not End-Buyer Co-Beneficiaries can get Conventional or Non-Convetional loans … they can get loans and close deals … is all that is important :!:

    Jerry Carey

    #28410
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    Joe and All,

    Thanks for your comments and input. The key to anything we do with the use of the EHTrust, either short or long term, is Full Disclosure. All we can do is ask the lender, their underwriters, title companys and their underwriters if our method passes their muster. If not, ask another. If so, close the damn deal. By asking first, which I do everytime, even if I’ve done deals with that lender or title company before, there are no suprises.

    I realize times are changing and you can quote chapter and verse of Real Estate and Mortgage Law and maybe someday a Lender or Title Company will tell me NO, but as of yesterday, all I’ve heard is yes, yes, yes.

    An even more famous person than Henry Ford once said… “Ask and you shall receive”.

    I’m hear to tell you that if you don’t ask, you won’t ever receive.

    #28411
    Avatar of neftalipazo
    neftalipazo
    Member

    Hello all,

    I do appreciate the responses to this post and Joe with all due respect I must reply to your comment:

    As for a private, Members-only section of this Forum, this will occur when, and if, Bill Gatten chooses to make it reality. There has been much conversation on the topic and, to the best of my knowledge, this is not a tech issue. This is a Company Policy item and only Bill changes Company Policy.

    If this the case then Bill has to get off his NAY SAYING and said YES to this request…JAJAJA…Just kidding my friends. But really this has been promised.

    I edited the end,,,

    Thanks.

    #28412
    Avatar of socalgal
    socalgal
    Participant

    Jerry Carey, you have succinctly summarized the increasing non-utility of land trusts for short term transactions. Legal or not, NARS trust or not, lenders and title companies don’t like recently recorded land trusts.

    Of course there are lenders who don’t have seasoning issues. They’re called hard money and/or private lenders.

    homesavers, I don’t have an “agenda.” If you want to pay for a NARS trust to complete a short sale, be my guest. What purpose it serves, I don’t know, but you can certainly add that frictional higher cost to your transaction if you wish. Flash funding is just as effective and cheaper. I’m merely pointing out this fact, even if the moderators deletes it.

    I am a member of NARS–whether some like it or not–so how does creating a private board prevent me from posting my opinion and the facts?

    A refund of $6,000 would completely eliminate my opinion. Facts, however, have a way of being stubborn.

    homesavers, I don’t have an “agenda.” If you want to pay for a NARS trust to complete a short sale flip, be my guest. What purpose it serves, I don’t know, but you can certainly add that frictional cost to your transaction. Flash funding is just as effective and cheaper.

    #28413
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    @SoCalGal wrote:

    Jerry Carey, you have succinctly summarized the increasing non-utility of land trusts for short term transactions. Legal or not, NARS trust or not, lenders and title companies don’t like recently recorded land trusts.

    They don’t have to like it if its legal, but we all understand what you’re saying. However, what about it is not my experience that you don’t understand. I not only deal with Lenders and Title Companies that not only understand it, but actually like it very much.

    In fact, at the San Diego Workshop last weekend we had the Owner of a Title Company in L.A. that came and spoke to us. She loves the EHTrust and will close our members transactions.

    @SoCalGal wrote:

    Of course there are lenders who don’t have seasoning issues. They’re called hard money and/or private lenders.

    Not all of them are “Hard or Private” Lenders.

    @SoCalGal wrote:

    homesavers, I don’t have an “agenda.”

    Sorry, I’m not buying that you don’t have an agenda anymore. I’ve seen you all over other sites, not just this one. Your trying to set yourself up as some sort of Loan Goddess and generate mortgage business.

    @SoCalGal wrote:

    If you want to pay for a NARS trust to complete a short sale, be my guest. What purpose it serves, I don’t know

    Yep, your right, you don’t know.

    @SoCalGal wrote:

    Flash funding is just as effective and cheaper. I’m merely pointing out this fact, even if the moderators deletes it.

    What’s all this talk about “Flash Funding”. We don’t do Flash Funding or use Hard or Private Money Loans. There’s nothing Flash about it. And any costs or fees involved are paid out of proceeds and not out or pocket. Besides, the cost of bogus or illegal documentation is even more costly. Staying out of jail… Priceless!

    @SoCalGal wrote:

    A refund of $6,000 would completely eliminate my opinion.

    So your opinion has a price huh? You belong in Washington.

    With all your knowledge and apparent vast resources, why didn’t you “check it out” before spending $6000 to became a member? What you paid for you got. You don’t have to do short term trust transactions the way I do if you don’t want to. NARS did teach you how to do them, they taught you how to do Long Term (12 months or more) EHTrust transactions. So why don’t just go do a few?

    #28414
    Avatar of mtnwizard49
    mtnwizard49
    Member

    So, the brilliant lending expert, SoCalGal, apparently spent $6000 on something she didn’t want, has buyer’s remorse, and comes around spamming every thread she can spouting something negative about NARS and trying to appear that she knows more than anyone who has ever visited this forum. Now there’s a recommendation for someone we would definitely consider an expert in the field of lending and would trust to give proper advice and counsel.

    Would anyone really take any kind of advice from this naysayer who spends more time attacking NARS and begging for a refund than she does providing any information of value, studying her material or, here’s a unique concept — DOING A DEAL?

    – Edited by Moderator

    #28415
    Avatar of homesavers
    NULL
    Member

    @joecain wrote:

    The NARS Equity Holding Trust, trademarked, System of Documentation

    Thanks Joe for clarifying the difference between trademarked and patent. The NARS method keeps being referred to as a “patented” system and it is not.

    I concur with your statements here.

    #28416
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    @homesavers wrote:

    The NARS method keeps being referred to as a “patented” system and it is not.

    No one has ever referred to the NARS System as being patented. It is Patent “Pending”. The full patent process sometimes takes several years, as it has for NARS. However, an application has to first be accepted, which was done long ago for the PAC/EHTrust. Once the Application is accepted and even though you have not been assigned a permanent patent number YET, you still enjoy the benefits of a patent. For example, you can still sue those that violate you pending patent.

    I do know that there are Attorneys, Gurus and other Investors that are using or have outright copied the NARS Process of Documentation. Some haven’t even taken the NARS Trademark and Copyright off the documentation their using. Bill knows who they are and their days are numbered and he has assured me that their days are numbered.

    None of this is really anyone’s concern except for NARS and Bill Gatten. Our focus should be on making offers and closing transactions.

    #28417
    Avatar of socalgal
    socalgal
    Participant

    I not only deal with Lenders and Title Companies that not only understand it, but actually like it very much.

    It’s not your choice from whom the end buyer obtains a loan. Naturally, the end buyer is going to shop–and deserves to shop–competitively.

    You said here that you had no idea from whom the end buyer obtains his/her loan.

    http://tinyurl.com/aemhto

    It’s just that since I am just a beneficary and not the Trustee/Seller, I have no connection with the End Buyer or their Lender. The fact is, I don’t know, and right now, don’t care. Most, if not all of these short term transactions, come to me already to go, I don’t know, other than the names furnished me to complete the documentation, who all the people are. I have no idea who their Loan Officer is or the lender they are using. My Title Officer lets me know when and if additional conditions are being requested by the buyer’s lender and what those are. If it requires me to furnish any information that the lender is allowed to have, I forward that to the Title Company who furnishes it to the Lender’s Underwriter. But I have no direct connection to them and don’t care who they are. I also don’t make recommendation for Lenders to End Buyers. I try to keep as much of an arms-length relationship as possible.

    #28418
    Avatar of socalgal
    socalgal
    Participant

    So, the brilliant lending expert, SoCalGal, apparently spent $6000 on something she didn’t want, has buyer’s remorse, and comes around spamming every thread she can spouting something negative about NARS and trying to appear that she knows more than anyone who has ever visited this forum.

    On the contrary, if a NARS trust–or any trust for that matter–solved the ongoing and increasing challenge of seller title seasoning, I would embrace it. The NARS trust was represented as the perfect instrument for getting around seller title seasoning when, in fact, it does no such thing.

    Can NARS members “spam” or are they merely discussing a certain aspect of NARS trust, albeit some members don’t like the path the discussion sometimes takes.


    – Edited by Moderator

    #28419
    Avatar of mtnwizard49
    mtnwizard49
    Member

    – Edited by Moderator

    #28420
    Avatar of homesavers
    NULL
    Member

    @Scott_L._Moyes wrote:

    [ Our focus should be on making offers and closing transactions.

    You are right. However, all my offers are rejected. So if I could say it was patented it may break that fear perception or whatever it is that keeps getting my offers rejected. Who knows your guess is as good as mine. I can only speculate since I receive no feedback when a proposal gets sent out to the owner. Sorry but this is my reality. No one has liked the Terms of Proposal and/or the NEO yet. I don’t care if somebody else is getting them through. I am not. It does not matter what anybody else is doing.

    #28421
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    @SoCalGal wrote:

    It’s not your choice from whom the end buyer obtains a loan. Naturally, the end buyer is going to shop–and deserves to shop–competitively.

    You said here that you had no idea from whom the end buyer obtains his/her loan.

    You are right, its not my choice. All I can do is refer them to our Preferred Loan Officer/Mortgage Banker who knows our program/s and what we are trying to help our RB/Buyer, now Borrower, accomplish. He helps them shop for the loan program that best fits their needs, including if necessary, lenders who do not require seasoning of title or funds with full disclosure in our Short Term Transactions or… more traditional and conventional lenders for those that have been RBs for 12 months or more.

    They are certainly welcome to do their own shopping or pick their own Bank or Broker, we don’t care. Typically in our Short Term transactions it is the Bank and or Title Company that is coming to us to structure the transaction with the EHTrust so they can get the deal done legally.

    Short Term transactions are not something we actively go out looking for in most cases. We do run in to possible deals like these by making calls for Long Term EHTrusts and by referrals from other Mortgage Brokers, Title Companies and Realtors.

    Our focus is still on Long Term, more than 12 months, transactions and always will be. We still do 10-20 or more Long Term deals to every 1 Short Term deal. There was a time, late 2008, where virtually 100% of our transactions were Short Term deals. It was nice and we made lots of money. As you have mentioned in your earlier posts, things have tightened up since January and we have not close a Short Term deal in 2009. However, we do have a few scheduled for closings sometime this month, so my Title Company tells me.

    @SoCalGal wrote:

    The NARS trust was represented as the perfect instrument for getting around seller title seasoning when, in fact, it does no such thing.

    No it wasn’t. It wasn’t and never has been represented as a “get around” for anything. It only works “within” the the law. For the last fricken time, the placing of ones property in to a valid inter-vivos trust does not trigger, nor is considered a transfer of title, like a sale would, for seasoning issues. Just because a lender doesn’t like the fact that an owner has vested their property and or its title with their own valid RLTrust, doesn’t make it a title seasoning problem. It is only a problem for that lender or title company and no one else. So if its a problem for them, don’t use them. Its that simple.

    My Title Attorney and Company understand this and are more than willing to with me and NARS EHTrust transactions, short or long. Full Disclosure to the parties is the KEY. If they don’t like it fine, who cares. Use a different lender or title company.

    Just you saying its not my choice who or what lender they choose, its not anyone’s choice that placing your property in to a valid RLTrust doesn’t create a title seasoning issue. Its not a “get-around”, its the law.

    #28422
    Avatar of getsmart
    getsmart
    Member

    Find a buyer with good credit and seasoing is usually not an issue, that is all I will say about this.

    #28423
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    @GetSmart wrote:

    Find a buyer with good credit and seasoning is usually not an issue, that is all I will say about this.

    BINGO!

Viewing 15 posts - 16 through 30 (of 61 total)

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