Real estate experts, help me out?

[Dboy4ral]

Whats a straw buyer?

Somone that finance something for some one who cant qaulify or for the sole purpose to get it out the sellers name with no intent on paying the loan back.
Basically it sounds like the builder paid somone to find the credit to finance the property(or not) more than likely there was a loan officer and a realtor/property locator that got the original equity that was in the house. 9Xout of 10 it was for the buyer(new construction/quick sell promotion since the market is fucked up) to keep. But they never told you that. The amount of money is usually more significant than any comission paid to the broker. They probably offered u some change upfront to buy it but not nearly as much as they were getting. I have a friend in jail for it and a couple on there way, there all under 30 have no jobs and riding flying spurs and ranges.

 

[Dboy4ral]

I live here in Atlanta classic mortagage fraud SCAM you guys did. Yall found some properties that you "thought" you could flip quick or at least re-fi and pull the cash out. You HAD THE CASH ON HAND TO INVEST and your BOY had the CREDIT. Mortgage GUY "cooks" the loan documents to make it seem as if YOUR BOY WITH THE CREDIT HAD THE INCOME TO GO ALONG WITH IT. Got you into a very shady stated income loan. THIS IS A CLASSIC SCAM IN ATLANTA. The lender and the courts can see that a mile away.

Lets just say all of you are FUCKED at the moment. It looks very fishy when 3 guys conspire to purchase over $2Million in Real Estate on a "stated amount" AKA "Liar Loan". If you guys were in really "Balling" like that... then you would have either gone with a convential mortgage product at a much lower interest rate.


Best thing I can tell you is to TAKE THE LOSS AND MOVE ON! Unload the properties at the PRICE they will sell quickly for. Just take the financial hit and don't try to flim flam scam anymore

And if u gonna do that fuck waiting 6 t0 a year to refi or sell pull ya money out at the closing and put up 6 to 8 months of payments and trick what evers left buy youself some time to make some moves.

 

[Strait_Laced]

damn at this entire thread...now that the market is turning in many parts of the country, there is going to be a lot of heads rolling...people were getting greedy with the no-doc stated income loans...

to the op: get legal help and get out of the situation ASAP...real estate values are not going up with all of those 2 year adjustables written over the last couple of years getting ready to re-set...a lot of speculators may get caught in the downdraft.

 

[cranrab]

i hope we don't see you on this list next year:

http://www.fbi.gov/page2/dec05/operationquickflip121405.htm

 

[badboyyawdie]

Sounds like some real shady shit.
How come yall stopped paying the mortage?
Did yall have to do 3 deals??

Ok, we have three houses on the same street. Me and my wife both nurses currently living in one house. Were paying around 5500 a month plus 405 hoa +utilites. We make around 10 grand a month without over time. The house is not in foreclosure. The 2nd one is being rented out by these white people. They paying 3500/month on the house. The 3 of us make up the difference wich is 2 grand. The third house is empty with the lockbox still on the house. The house that is being rented out, is leased for a year. We were using the rent from the from the 2nd house (rented) to help cover the third house (not rented). The 3rd house mortgage is 6g/month.
When we closed on the house we had renters lined up. Then when it was time to rent the renters to be, low balled us on the price. A judge in west palm offered us only 2000/month on a 4000sq/foot house, "WTF"! We turned him down and now we wish we kept him. So now we owe 34,000 on the 2nd, and 38,000 on the 3rd. We spoke to the lender on the 2nd (the one thats rented) and they took us out of preforclosure, but we had to pay 1 g extra/month on top of our mortgage. Now the mortgage is around 7 g a month +405 hoa fee. And now its back in preforclosure cause we never payed. The guy who's name is on the properties checked his fico today and now it show 2 preforclosure on his credit report. His middle score is 437. I think he's going to try and kill us.

 

[badboyyawdie]

i hope we don't see you on this list next year:

http://www.fbi.gov/page2/dec05/operationquickflip121405.htm

Oh shit, that niccas in trouble....

 

[Dboy4ral]

WE LIVE AND LEARN STAY UP BIG HOMMIE

Ok, we have three houses on the same street. Me and my wife both nurses currently living in one house. Were paying around 5500 a month plus 405 hoa +utilites. We make around 10 grand a month without over time. The house is not in foreclosure. The 2nd one is being rented out by these white people. They paying 3500/month on the house. The 3 of us make up the difference wich is 2 grand. The third house is empty with the lockbox still on the house. The house that is being rented out, is leased for a year. We were using the rent from the from the 2nd house (rented) to help cover the third house (not rented). The 3rd house mortgage is 6g/month.
When we closed on the house we had renters lined up. Then when it was time to rent the renters to be, low balled us on the price. A judge in west palm offered us only 2000/month on a 4000sq/foot house, "WTF"! We turned him down and now we wish we kept him. So now we owe 34,000 on the 2nd, and 38,000 on the 3rd. We spoke to the lender on the 2nd (the one thats rented) and they took us out of preforclosure, but we had to pay 1 g extra/month on top of our mortgage. Now the mortgage is around 7 g a month +405 hoa fee. And now its back in preforclosure cause we never payed. The guy who's name is on the properties checked his fico today and now it show 2 preforclosure on his credit report. His middle score is 437. I think he's going to try and kill us.

that shit aint in your name so your credit is saved as far as the law they dont always investigate grab u something while you can at about 85%ltv rent it out just in case it goes down youll have a place and if thats ya homeboy like that help each other out if not aaaaaaa!

 

[Dboy4ral]

Can anyone please simplify these terms for me.

What does "Notice of Lis Pendens" mean in lay terms?


When you have a claim of lien on your property, does that directly affect your credit rating?

Is this reported on your credit?

If it is how many points will your credit rating drop?


OK new question???!!!?! 4/3/2007
:January 12th I did a side deal of my own were I bought a house in my name for 280,000. The house has 80 thousand in equity. This was my backup plan in cased I had to bail out. Now the prob. is the house is currently being rented out for 1540 a month the mortgage is 1842 a month. I make up the diff. The lady and her 3 kids have been living there for 5 years. The people who I bought it from were in hard times, so I got it a good deal. The lady and her kids trashed the house, dented up the garage. The grass is dead. And the house smells like pure shit. The house other than that is beautiful and could be sold for atleast 400 grand no problem. The lady is not on a lease
and pays month to month from a trust fund from her dead husband. The problem is I want to kick her out, now so I can move in fix up and sell (or just live in)ASAP!! Can I legally kick her out in 30 days? If I cant what are my choices?

IF SHES MONTH TO MONTH RAISE HER RENT TO SOMETHING STUPID AND LET HER LEAVE. EVERY STATE HAS DIFFERENT RENTAL GUIDE LINES BUT THE DESTRUCTION OF PROPERTY SHOULD BE ENOUGH TO LEGALLY PUT HER OUT BUT IF U DONT WANT A PROBLEM MAKE A CREDIT CRITERIA AND RAISE THE RENT. AND CALL YOUR INSURANCE COMPANY AND SEE IF U CAN GET SOME OF THAT MONEY FROM THEM THERE USUALLY GOOD WITH THAT

U DOING IT REAL BIG U KNOW WHAT U DOING STOP FRONTIN

 

[afroyale]

Now the prob. is the house is currently being rented out for 1540 a month the mortgage is 1842 a month. I make up the diff.

This thread needs to be posted in the BGOL business section so that a hard-headed real estate cat (I ain't gonna mention names) can understand my point. Which is, one's ability to borrow money using a fucked up loan instrument (i.e interest-only etc) doesn't make him a Donald Trump.

Debt is NOT EQUAL to wealth. Credit scores means shit if your ass can't repay.

Look at badboyyawdie, he is now subsidizing someones rent. What kind of business tactic is that? Only governments use such tactics because the money ain't theirs and they don't have to give it back.

Meyannn... the RE market during the past 5 years has made a fool of smart people. Greed I say, greed.

 

[DiamondDeuce]

IF SHES MONTH TO MONTH RAISE HER RENT TO SOMETHING STUPID AND LET HER LEAVE. EVERY STATE HAS DIFFERENT RENTAL GUIDE LINES BUT THE DESTRUCTION OF PROPERTY SHOULD BE ENOUGH TO LEGALLY PUT HER OUT BUT IF U DONT WANT A PROBLEM MAKE A CREDIT CRITERIA AND RAISE THE RENT. AND CALL YOUR INSURANCE COMPANY AND SEE IF U CAN GET SOME OF THAT MONEY FROM THEM THERE USUALLY GOOD WITH THAT

U DOING IT REAL BIG U KNOW WHAT U DOING STOP FRONTIN

Man this cat is very foolish... He has broken a few REAL ESTATE INVESTING 101 Rules.

He purchased a property for the intent of income producing but is paying the difference between the rental revenue and the mortgage
Then he purchases several propertie at once at close to market value without a surefire means to flip them
To top it off he has "cooked" his loans to get financing for all this foolishness!
Buddy just needs to UNLOAD all of his properties and learn about real estate investing before he steps back in the game

 

[DiamondDeuce]

Oh shit, that niccas in trouble....

Nah NIGGA you in trouble too!

Equity Skimming: An investor may use a straw buyer, false income documents, and false credit reports to obtain a mortgage loan in the straw buyer's name. Subsequent to closing, the straw buyer signs the property over to the investor in a quit claim deed which relinquishes all rights to the property and provides no guaranty to title. The investor does not make any mortgage payments and rents the property until foreclosure takes place several months later.

 

[afroyale]

I went into some real estate ventures. I invested a shit load of money with a partner. And now im looking on public records and its saying that there is a notice of lis pendins and claim of lien on both properties. The 2 houses are in the price range of 800 grand each. Im losing sleep over this shit.

In the words of guru Dave Chapelle, "You be fucked!"...

 

[Dboy4ral]

Man this cat is very foolish... He has broken a few REAL ESTATE INVESTING 101 Rules.

He purchased a property for the intent of income producing but is paying the difference between the rental revenue and the mortgage
Then he purchases several propertie at once at close to market value without a surefire means to flip them
To top it off he has "cooked" his loans to get financing for all this foolishness!
Buddy just needs to UNLOAD all of his properties and learn about real estate investing before he steps back in the game

jUST BEING SARCASTIC BUT HES ALRIGHT HE HAS 80K SITTING AND OBVIOUSLY A GOOD RATE ON 280K ALTHOUGH ITS IMMORAL HE CAN WALK A WAY WITH FROM THE OTHERS AND SINCE HE PUT UP CASH I WOULD WALK WITH A COUPLE OF THOSE RENT PAYMENTS TO GET BACK SOME OF MY CASH BECAUSE THE SHITS GONNA HIT THE FAN ANYWAY

 

[Dboy4ral]

Man this cat is very foolish... He has broken a few REAL ESTATE INVESTING 101 Rules.

He purchased a property for the intent of income producing but is paying the difference between the rental revenue and the mortgage
Then he purchases several propertie at once at close to market value without a surefire means to flip them
To top it off he has "cooked" his loans to get financing for all this foolishness!
Buddy just needs to UNLOAD all of his properties and learn about real estate investing before he steps back in the game

jUST BEING SARCASTIC BUT HES ALRIGHT HE HAS 80K SITTING AND OBVIOUSLY A GOOD RATE ON 280K ALTHOUGH ITS IMMORAL HE CAN WALK A WAY WITH FROM THE OTHERS AND SINCE HE PUT UP CASH I WOULD WALK WITH A COUPLE OF THOSE RENT PAYMENTS TO GET BACK SOME OF MY CASH BECAUSE THE SHITS GONNA HIT THE FAN ANYWAY HIS PARTNER GONNA HAVE TO FILE CHAPTER 13 IF HE FIND THE LOOPHOLE. SO GET WHAT U CAN AND BE OUT!!!!

 

[afroyale]

Ok, we have three houses on the same street. Me and my wife both nurses currently living in one house. Were paying around 5500 a month plus 405 hoa +utilites. We make around 10 grand a month without over time. The house is not in foreclosure. The 2nd one is being rented out by these white people. They paying 3500/month on the house. The 3 of us make up the difference wich is 2 grand. The third house is empty with the lockbox still on the house. The house that is being rented out, is leased for a year. We were using the rent from the from the 2nd house (rented) to help cover the third house (not rented). The 3rd house mortgage is 6g/month.
When we closed on the house we had renters lined up. Then when it was time to rent the renters to be, low balled us on the price. A judge in west palm offered us only 2000/month on a 4000sq/foot house, "WTF"! We turned him down and now we wish we kept him. So now we owe 34,000 on the 2nd, and 38,000 on the 3rd. We spoke to the lender on the 2nd (the one thats rented) and they took us out of preforclosure, but we had to pay 1 g extra/month on top of our mortgage. Now the mortgage is around 7 g a month +405 hoa fee. And now its back in preforclosure cause we never payed. The guy who's name is on the properties checked his fico today and now it show 2 preforclosure on his credit report. His middle score is 437. I think he's going to try and kill us.

?? ... Insanity.

$120K a year salary ain't shit. You don't have any business fucking around wit borrowed paper like that. Now innocent tax payers are gonna have to clean up your mess.

Damn! $6K, $7K etc PER MONTH for the right to rest your head for 8 hours a day?? WTF y'all smoking?

 

[3nedds]

sucks 2 b u

 

[Dwayne Wayne]

Whats a straw buyer?

This scam involves a home owner who sells his property to an accomplice. The seller forges appraisal documents to help inflate the value of the house he is selling to the fake buyer. The bank lends money to the fake buyer, with the proceeds going to the seller, for a house with an inflated value. The bank is left holding a mortgage on a house that's worth about half the outstanding loan. The fake buyer disappears--and gets a cut of the profits from the seller.

Sorry yall already answered this my bad

 

[Real1]

Ya'll call this Real Estate Investing

It seems like you ignored the fundamentals

1)Know your MAO (Maximum Allowable Offer). This is the MOST you should be paying for properties. Sticking to this number will help to prevent you from being upside down.

MAO: 70% x ARV(i.e. What the house will sell for in average/move in condition) - repairs needed = MAO

EXAMPLE: A seller calls you and wants to sell a house that is worth $400,000 , but needs $20,000 in fix-up. What do you offer?


70% x $400,000 - $20,000 = $260,000


There is never a good reason to buy at retail. You make your money when you buy, not when you sell. In other words, you should be securing your profits when you purchase the house, not waiting/hoping/praying for appreciation. Fuck appreciation! Real Estate is cyclical. Prices go up, go down, and stay flat.


2) For rental properties, the average market rents MUST support the debt service (mortgage payment), operating expenses, and vacany. I don't buy rental properties that break even or don't make money. It has to be profitable from the start. If the rent can't support the debt service, expenses, and vacancy, then I'm looking for a better purchase price. It doesn't matter if it's a single house or 11 units. Also, I usually don't put any money down of the properties that I purchase. Why? I don't need to when I'm sticking to MAO.

3)Know your exit strategy....then know your backup strategy.

Also, don't get happy and pull out all your equity at closing. I may pull some out to place into reserves for that specific property.

This post made my fuckin head spin. It sounds like a comedy of errors...but it ain't shit funny. My phone is ringing more than ever and alot of the people in trouble start out with saying "I bought this house as an investment" or "I'm a real estate investor too".

 

[CybaCipha]

Here it is. Me and some partners invested a total of 240 grand into three properties in an upscale area of west palm beach. We closed on the three properties in consequative order the first one in july of 2006 and the last october of 2006. The least expensive property was 649, most expensive 849. 80 grand was put down in closing on each property. Mortgage for each property is 5500 + 405 HOA fees. We havent paid shit for about 7 months. Are plan was to sell when the market went up. The fucked up part is the market went down. Im on the deed but not the mortgage. I would have gotten less because I had less to lose (Just money). I did a special warranty deed saying that I was a co-owner of the property and nothing could be sold without my authorization. Now the nicca with the mortgage's in his name is suicidal b/c he is going to have 2 possibly 3 foreclosures in his name. He didnt put down any money in any of the properties, we only used his credit. He was around a 790 middle score b4 this biz venture. I just want to know if my credit is gonna be fucked up.

Short answer yes
Your credit will be fucked up

After they come after him and he don't got it they will come after you.

1. What the fuck made yall think yall could purchase property and not pay the mortgage.

Mortgage is translated into Death Grip.

2. Why would you purchase a property without performing a title search? Then you will find out all leinholders against the property.

3. I got a crew in Miami and Boca that can probably purchase the property but don't expect market value fam. They been doing this shit for years.

4. Why are you still purchasing property in April if you ain't resolve the situation from 06?

 

[CybaCipha]

,,,,,, I cant believe I laughed at this shit. Im feelin like a dick now.

Since I have a special warranty deed i'm straight, right??

No your not in good shape either.

Damn homie that supposed to be your boy and you straight at him. Talk to a lawyer fam.

 

[CybaCipha]

How did we commit mortgage fraud when the lender accepted the loan. They made an ethical decision. We presented our info to the mortgage broker and the mortgage broker presented it to the lender. The lender gave a high interest rate, they were greedy just like us.

Stated income means that they base the loan on the information YOU provide. They are not responsible to verify your information because you take responsibility for the information you give.

In other words if you lie about your income and the shit hits the fan... every one looks at you and your partners.

 

[CybaCipha]

Oh shit, that niccas in trouble....

You too:

o Equity Skimming: An investor may use a straw buyer, false income documents, and false credit reports to obtain a mortgage loan in the straw buyer's name. Subsequent to closing, the straw buyer signs the property over to the investor in a quit claim deed which relinquishes all rights to the property and provides no guaranty to title. The investor does not make any mortgage payments and rents the property until foreclosure takes place several months later.

You and your partners are the investors and the dude who's credit you fucked up is the straw buyer. Yall going to jail. get a lawyer.

 

[CybaCipha]

Man this cat is very foolish... He has broken a few REAL ESTATE INVESTING 101 Rules.

He purchased a property for the intent of income producing but is paying the difference between the rental revenue and the mortgage
Then he purchases several propertie at once at close to market value without a surefire means to flip them
To top it off he has "cooked" his loans to get financing for all this foolishness!
Buddy just needs to UNLOAD all of his properties and learn about real estate investing before he steps back in the game

RE Investing 101

Rule #3 - Money is made when you buy. Know your exit strategy homie. This dude did not have one! Don't make the same mistake.