Any Ideas On Getting An Investor To Pay On His Note?
I have only had great experiences with private lending until now. I have an investor in an interest only 1 year baloon that is not paying. This is the 2nd month of non-payment and his previous track record is bad. He answers the phone and says he will call his bookkeeper. Any ideas? It was signed both in the name his company and individually. Can I ding his credit? Does anyone know how to do this? Should I just foreclose. There is over 40,000 in equity in the property. The original loan was $29,000. The investor is rehabbing many properties in the same building and the property is not listed on the mls or rented.
I would really appreciate any help you will offer. Thanks!
Pinvestor
Florida
I dont know what the no payment period is in Fl
find out at http://www.foreclosureuniversity.com/studycenter/foreclosurelaws/florida.php
First you have to get a lawyer in Fl that will run the foreclosure for you. They run btwn 2,000 - 5000 soup to nuts, but the good news is with just a 500 retainer, this starts the paperwork of lending laws bla bla bla flowing which usually (hopefully) wakes- up the borrower.
I am wondering where this rehabber was planning on coming up with the monthly interest pymt for you if there is no rental income coming in. I take it also that we are talking about a 2nd position note? If so I hope that 40k above you holds.
Good luck
Mike
This is the 2nd month of non-payment and his previous track record is bad.
You charged 16%
plus how many point?
You knew his track record was bad.
What do you want?
Pinvestor
Very glad to hear it is a first! not a second mrtgage.
Do what you have to with the lawyers and move on.
Write this one up to the learning channel, we have all been learning this past year.
Private lending is still the BEST!
Cheers!
Mike
Mike
I agree. Thanks!
P Investor
Please keep me posted on the outcome of this deal. I want to know how it works out for you.
I am working on aquiring private lenders myself for different deals I am working on.
Good luck
Mike
I hate to be a a deal breaker. NO attorney works on any deal in FL for free on real estate. Not even on contingency. My Friend. Catch up on the times. I am still holding my stomach from LMAO! Please!
D
Quote:
On 2008-02-13 21:40, cjmazur wrote:
This is the 2nd month of non-payment and his previous track record is bad.
You charged 16%
plus how many point?
You knew his track record was bad.
What do you want?
I guess what I was getting at is given the terms, I would be very agressive and not moan.
Quote:
And then just some frustration trying to help a fellow investor out that does not seem to want to be helped.
The way to "ding" his credit is to foreclose. Many people do not deal with people with a FORE notice on their record. This should be motivation enough for him to act.
Thank you. I began the foreclosure process 2 weeks ago. I found a fantastic real estate attorney who just needed $500 upfront. He thinks it will cost about $2,500 when it is all said and done. The good news is there is still plenty of equity in the property so the money will come back. Many people have called offering to buy the note at a discount.
It is not for sale.
Thanks again and hav a great day.[ Edited by pinvestor on Date 03/18/2008 ]
How is this deal now?
Mike
Lis Pendens was filed. Foreclosure is underway.
Do you mean they will pay only 5% of the note? Where can I go for a direct source? I plan to create a note and I want to sell at closing. Thanks
apexnote, in your experience how much would a direct note buyer be willing to pay for a note with a 10% down payment, i carry a note for 5% and sell the 1st note at 85%. The buyer will have a 620 credit score. Would i see around 92% of the 85% 1st mortgage?[ Edited by charlotteinvestor on Date 03/23/2008 ]
try the legal department
If you have more than one or two properties that you would advertise as having seller financing potential, I would go direct with Boston Note or Charter Financial and become a registered note broker. You avoid the middleman. BTW, simultaneous closings (so that you get cashed out and sell the note when you sell the property) with either company, if the buyer has good credit, the rate is above average, and the buyer puts down a reasonable down payment, are possible and the note discounted less.
private money notes are expensive. Typically, >12 and >2-3 points.
If you were looking for lending commitments on a whole sub, there are sources for that.
private money notes are expensive. Typically, >12 and >2-3 points.
If you were looking for lending commitments on a whole sub, there are sources for that.
gainesvilleJ, I think now understand what you are asking. richardo has the answer. Indeed, in my state (NC) the origination activity (making a mortgage loan) for an owner occupied property is regulated whereas buying the underlying, already created, note is not. Other states may be different.
richardo, who do you use as a loan servicer? I am looking for one myself. For the past several years I have serviced my own notes and I plan to offer seller financing on properties I am selling in a few months.