November 25, 2014
Watch the training replay for November 25, 2014.
Audio Stream Only
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Intro and Announcements:
December 12th & 13th – Max ROI with Junior Liens Workshop with special guests Saprina Allen and Jillian Sidoti, who’ll be helping us answer some key questions about structure so we can raise capital to take things to the next level. December 11th is a Co-Invest Group Members Only Workout Mastermind from 1 pm to 6 pm.
NOTE: You must RSVP – please click here
Location: Hilton Garden Inn San Diego/Rancho Bernardo – 17240 Bernardo Center Drive, San Diego, CA 92128
Directions from San Diego Int’l. Airport: Take I-5 south to CA 163 North towards Escondido. 163 North merges into I-15 North. Continue North for 12 miles to Rancho Bernardo Rd. exit. Make a right at bottom of ramp, then turn left on Bernardo Center Dr. Turn left on Park Terrace, then follow the signs to the Hilton Garden Inn.
The negotiated room rate is $129 per night. Internet/WiFi is included. The optional hotel breakfast buffet is only $12.95.
Minute 5:00: Takeaways from PaperSource
– It doesn’t matter what level you are at. Whether you are a newbie or seasoned veteran, you can always learn new things.
– Connecting and meeting new people can’t be done outside of a live event like this.
– Quality of attendee is higher than most other events he’s been to. This is what we’re looking to do with NIS.
– Very impressed overall. Classes were great but there was a lot of value in meeting the vendors and talking one-on-one with them.
– Networking was great. Some great vendors. Received positive feedback from the "mistakes" that were shared as it’s not always a bed of roses.
– Realized we have a great thing going here with this group.
– Learned from Matt Kelly: Jr Liens status – if there is a redemption right you can buy that from the seller.
– Learned from Kevin: Statute of limitations is per payment. So you don’t lose your rights on the back payment
– Great to meet people he’s known face-to-face. Good variety of people from newbie to experienced.
– Networking was great. Did a price analysis and comparison on pricing while there. Goes into some of her experience with vendors and what they are able to do for loans the vendors are boarding.
23:01: Collateral File Review
You can download the files referred to on the call here: http://www.capstonefundinggroup.com/downloads/file-review.zip
Going over the summary of things they need. Later will go through additional documents.
Sabrina goes through the documents in detail.
– Place of employment is important. Make sure to put that on the summary sheet.
– Include balance of 1st lien position, current payment, and if the loan is current or delinquent
– This gives you an idea so you can see at a glance how much equity you may have in reference to this account
– Note: This property is underwater. But looking at the pictures there is a lot of emotional equity invested
– You have to think outside of the box when you put some of these together
Q: Are we ordering full title in preliminary due diligence?
A: If you’re not going to foreclose and you aren’t sure what you’re doing to do with the loan, don’t order a title report. When you send a file to the attorney for foreclosure, they are going to pull a title report and charge you for it anyway.
Check bankruptcy. Might seem redundant but it’s really important because of the time that has lapsed that you repeat some of these processes. Very very important to check every 3 months or 6 months depending on the borrower you have.
Check if the property is listed for sale. It can be a positive, but you need to be prepared that if they want to take a reduction in principle balance, you need to do your due diligence to make sure you aren’t giving away the farm for free.
On junior liens, check credit every 90 days as long as it’s a soft pull and not a hard pull.
If you see a lot of medical bills, something happened in their life which could be the reason they fell down. Tax liens makes it harder to do deed and lieu. If you see a lot of inquiries on their report that’s a red flag that they might be trying to get a loan to get this paid off. You also need to know their employment, industry, etc.
Q: Have you noticed any trends with those people who file for bankruptcy?
A: If you see them fluctuate a lot that is an indicator they may file for bankruptcy
Don’t let things you find discourage you when doing your review.
– When looking at the picture, does this look like someone who wants to lose their home?
– Just need to know how to approach it to make it work for you and them.
– Always lead with being nice
– Are we confident Richmond Monroe would have caught unrecorded assignments?
– Question regarding loans at Allied Services and Richmond Monroe
– Comments regarding Richmond Monroe
– Comments regarding files from Allied
– We will send info out about the servicer we met at the AAPL conference
– Contact: firstname.lastname@example.org
We submit the loan numbers to our account rep at Richmond Monroe. Note sellers are not always as good at giving us file updates. They don’t always instruct the custodian the loan numbers. It’s up to us for follow-up
– Give your custodian the physical property address and parcel number to process to get a faster answer.
– When you just want a copy of your note and mortgage, depending on your custodian, they will often give you a copy of your notes
– If you get in a pinch, play stupid and see if there is any way they can provide the loan and mortgage on the note they just purchased
– Question: Is there a way to get records from previous sellers?
A: You request them from the seller. When you get the collateral file sent to you, you can find the golden nuggets because sometimes there are voided checks, 1003’s, etc. You may find there is a lot in the collateral file you didn’t realize was there.
Question on checking IRS and state taxes
Please confirm for the mastermind session on the 11th, then for the workshop on December 12-13th.