> Continued from :: PG 32 The Daunting Default

sell it, or rent it out. •

erty is located to ensure that the documents are prepared properly. Have the note assignment recorded to protect your interests. Prepare a letter from the note seller to the payor instructing them to now send their payments to you. Have the seller sign it. You then send it to the payor via a service with proof of delivery. Follow the “3 P’s” and you will be on your way to making double-digit returns! •

and co-branding:

investor deals or selling deals they don’t want, then investors will need to de- cide to adjust their models or exit the business. To be sure, these com- panies are not reces- sion-tested. The majority of these iBuyers have only been around for a hand- ful of years, and they’ve enjoyed nothing but an increasing market. If we enter a recession, no one knows for certain what the game plan will be. WHAT TO DO Keep a close eye on the inventory local iBuyers are chasing. When pos- sible, build relationships with their local represen- tatives and see if there’s a way to work in tandem. Sharpen those skills to tackle uglier rehabs, add square footage, and focus on creating value. The easy stuff is likely gone. If Wall Street decides not to work with Main Street, it’s time to get scrappy and creative. Plan on it. • > Continued from :: PG 92 Prospecting for Opportunity “I keep telling everybody you have to take care of that stuff before you put it on the market. Nobody has this money. Young kids coming out of college are in debt. They don’t have the money at the end of the month to fix the plumbing. You’re going to have to take care of that if you want the house to sell in a reasonable time.” Still, investors want to be

“additional insured,” call the company and find out if the policy is still in effect. If it is not, order a policy of your own. You need protection.

in the Seattle market. Cap rates are staying around four percent while Shank notes that he still gets calls from investors look- ing for a 10 percent return on multi-family properties. “Around here you’re lucky if you get six percent and super lucky if it’s seven percent,” he said. ATTOM reported that foreclosures in the Seattle metro area were un- changed in the first quar- ter from the same quarter last year. When it comes to buying at foreclosure auc- tions however, institution- al investors like Vestus are buying in bulk and boxing out smaller investors who can’t compete. “They’re wearing out

the market. Everybody’s so fatigued they’ve stopped going to the auction since they can’t beat Vestus. So, they are able to monopolize the auction. They’re whole- saling them on their website after they buy them at auction paying top dollar.” Still, for investors look- ing for deals in Seattle there are opportunities to be found. “Opportunities are still there but you have to go back to knocking on doors because you’re not going to win at auction. I’m making my own projects,” said Shank who does a lot of direct mail marketing and social media. •

• Walmart and Buzz- Feed

> Continued from :: PG 47 The 3 P's of Real Estate Note Investing THE PAYOR Do not contact the

4) Your checkbook. They will have you prepare a “Decla- ration of Default” document of some sort, sign a few

• J. Crew and WeWork

• Starbucks and Spotify

2. Check the property

• Home Depot and Pinterest

taxes with the County Tax Collector. If they are delinquent, then pay them current. Get a receipt be- cause some counties are slow to update their records. 3. Find out the status of any senior loans. Call first, but if the lender refuses (privacy rea- sons, usually), have an attorney make the request. Pay the senior loan(s) current, and get proof. tance, drive by several times. It’s best not to step on the property, but taking photos from the street, and dating them, is a good idea. If the property is distant, hire a service like to go take pictures. If the occupants severely damage the property, and you decide to sue them for “waste,” the pictures will be useful. Foreclosing is a well-trodden path in real estate. Done properly, it usually works out. Once you recover the property, you might need to evict the occupants, make repairs, then decide whether to 4. See the property. If it is within driving dis-

payor; get this information from the note holder. Here are the questions you need to ask about the payor: • Have they ever been late making the payment? If so, how many times? • Are they current on payments? If not, how far behind are they? • What has the note holder done to bring them current?

times, write a check, and you’re done!

• Crate and Barrel and Dolly • Dunkin’ Donuts and Waze • GoPro & Red Bull

“RIGHT OF REDEMPTION” In some states, a

foreclosure is not really over when the foreclo- sure auction or court judgment takes place. The defaulting borrow- er retains a “right of redemption.” Basically, they can pay up the back payments and foreclo- sure costs and redeem the property from you. Twenty-five states have no “right of redemption” at all; 22 others have a fixed period, up to 365 days, and three states let the court decide on a case-by-case basis. Your foreclosure processor can explain whatever might apply, and any tactics you can legally use to deal with owning a property that might get redeemed. Renting it out during the redemption period is a common ap- proach, for example. PROTECTING YOURSELF DURING FORECLOSURE 1. If you received an insurance policy from

• Nike & Apple

> Continued from :: PG 55 Co-Everything in Commercial Real Estate

Retail real estate is undergoing an entrepre- neurial state of mind and being more innovative than ever before. People want to be able to live, work, and play in their communities. As a local broker you need to be on top of the market and know what is going on for your clients. With shifting consumer preferences, commercial real estate will continue to be more creative and collaborative as companies teaming up will always be exciting to customers. • > Continued from :: PG 63 iBuyers: Investor Friend or Foe? of America (now Zillow Home Loans as of April 2019), the aim is to verti- cally integrate the entire transaction allowing a con- sumer to complete a trans- action without ever leaving the Zillow ecosystem. If iBuyers don’t work with local investors by buying

Kohl’s stores that offered Amazon returns was “on average, 13.5 percent higher than at those without the program.” Kohl’s


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American Association of Private Lenders

81 99

Anderson Business Advisors

also an- nounced a new

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Investor Review: 12-13

• What is the

Constructive Loans

50 39 33

stra- tegic collab-

payor's name(s), address, and (if known) Social Security number?

Investor Lending

Mobile Home Millions

National Association of Rental Property Managers


oration with Weight

Norada Real Estate Investments

Investor Review: 4-5; 100

Out of Town Landlord


Watchers (WW) to bring

PeerStreet Investor Review: 1-3 Pull the Trigger Enterprises 66 RealPage Inc. Investor Review: 8-9 Real Property Management 26-28 Real Wealth Network 2; Investor Review: 14-15 Recon Realty (Andy Williams) 22-23 Residential Assisted Living Academy 3 Residential Capital Partners Investor Review: 10-11 SmartRent Investor Review: 6-7 Think Realty 6, 11, Investor Review: 16 US Probate Leads 45

together both compa- nies’ shared passion to live healthier lives. WW Studio at Kohl’s will create 1,800 sf inside Kohl’s to host workshops and healthy kitchen products, including a line of health-conscious WW branded kitchenware and cookware. A few collaborations

CLOSING THE NOTE TRANSACTION Buying a note can be as simple as the seller writing on the back of the note that it is assigned to you and signing it. But it is best to use a title company or attorney in the state where the prop-

the borrower and were named as an

96 | think realty housing news report :: august / september 2019

thinkrealty . com / hnr | 97

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