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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Now we are seeing eye to eye. Yes cut a deal with the owner (nt) Posted by JK (the other JK) on May 06, 2009 at 4:11 PM In Reply to: Re: Foreclosing 1st being sued.... posted by Z.H. - Nor Cal on May 06, 2009 at 3:47 PM : : : : : JK, may be I should have explained myself better. Normally I would not pay face value for a note that isinvolved in litigation. : : : : : But with this one, the note amount is a very low LTV based on current value. : : : : : Note amount is 250k, needs 100k, worth over 900k on a very fast fire sale once work is done. : : : : : Over 100% ROI if I paid cash for it. I usually use a HM lender to pull cash out once bought at sale so the ROI would be based on about 175k out of pocket : : : : : looking at around 490k in net profit after agents commissions for basically 175k out of pocket. not a bad deal. : : : : : the 120 days comes from knowing my market, i can have it done fixed, sold and closed in 120 days with a 900k resales price... : : : : : so ROI is actually far higher than 100%, was just stating its a good deal if a deal can be made. : : : : : So, there is the explanantion. Nothing has been recorded regarding the litigation no les pendens etc). Cant find record of any civil suit filed either, : : : : : so its possible that the borrower/owner hasnt filed suit yet or may not, I said there was a lawsuit becuase that is what I was told by a mutual friend of lender and I : : : : : So, lets set aside the reasons why I want to proceed, if I were to what do you think the best option is? : : : : ----------------------------- : : : : To be a little more clear, my goal here is to end up with the property for as close to the 250k note amount as possible. : : : : That seems to be a given but just to clarify... : : : If you buy the note, what's to stop someone from bidding it to $700K+ -- assuming the property is truly worth $900K? : : ------------------------------------ : : JK, if I buy the 1st then someome in my pocket will be there with cash to over bid. trust me I will end up with the property for the amount of what I pay for the note... : : I dont want to go this route as there may be a usury issue with the note, that is what i was asking about in my original post. : : there are a lot of ways to skin a cat, I am looking for the best way to approach this. : : Again, let set aside the what if and what abouts etc, out of the options i listed which one seems the best way to go. : : or is there another option i am missing. : : If you dont have an opinion on which way to go, please say so. : : I of course am consulting my RE atty, but he is out for a few days and I was hoping someone like Ward etc would have an opinion. this will give me a few days head start : : If there are no opinions then so be it, will talk to atty in a few days : ------------------ : Just reread your post and mine, I mis read yours, and was thinking about something completely different. : If I buy the 1st, yes it will probably be bid on, especially if there is nothing recorded regarding a lawsuit. : So with that said I there seems to be two options: buy at sale, or cut a deal with owner for a new Jr bene? Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : : : : : JK, may be I should have explained myself better. Normally I would not pay face value for a note that isinvolved in litigation. : : : : : : But with this one, the note amount is a very low LTV based on current value. : : : : : : Note amount is 250k, needs 100k, worth over 900k on a very fast fire sale once work is done. : : : : : : Over 100% ROI if I paid cash for it. I usually use a HM lender to pull cash out once bought at sale so the ROI would be based on about 175k out of pocket : : : : : : looking at around 490k in net profit after agents commissions for basically 175k out of pocket. not a bad deal. : : : : : : the 120 days comes from knowing my market, i can have it done fixed, sold and closed in 120 days with a 900k resales price... : : : : : : so ROI is actually far higher than 100%, was just stating its a good deal if a deal can be made. : : : : : : So, there is the explanantion. Nothing has been recorded regarding the litigation no les pendens etc). Cant find record of any civil suit filed either, : : : : : : so its possible that the borrower/owner hasnt filed suit yet or may not, I said there was a lawsuit becuase that is what I was told by a mutual friend of lender and I : : : : : : So, lets set aside the reasons why I want to proceed, if I were to what do you think the best option is? : : : : : ----------------------------- : : : : : To be a little more clear, my goal here is to end up with the property for as close to the 250k note amount as possible. : : : : : That seems to be a given but just to clarify... : : : : If you buy the note, what's to stop someone from bidding it to $700K+ -- assuming the property is truly worth $900K? : : : ------------------------------------ : : : JK, if I buy the 1st then someome in my pocket will be there with cash to over bid. trust me I will end up with the property for the amount of what I pay for the note... : : : I dont want to go this route as there may be a usury issue with the note, that is what i was asking about in my original post. : : : there are a lot of ways to skin a cat, I am looking for the best way to approach this. : : : Again, let set aside the what if and what abouts etc, out of the options i listed which one seems the best way to go. : : : or is there another option i am missing. : : : If you dont have an opinion on which way to go, please say so. : : : I of course am consulting my RE atty, but he is out for a few days and I was hoping someone like Ward etc would have an opinion. this will give me a few days head start : : : If there are no opinions then so be it, will talk to atty in a few days : : ------------------ : : Just reread your post and mine, I mis read yours, and was thinking about something completely different. : : If I buy the 1st, yes it will probably be bid on, especially if there is nothing recorded regarding a lawsuit. : : So with that said I there seems to be two options: buy at sale, or cut a deal with owner for a new Jr bene? 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