To help or not to help?

[SD Realtor]

stopthebubble – no I have not personally been involved with second trust deeds or any equity sharing deals. I do know people who have carried back financing on sales and I always referred them to an attorney to generate the note. That is about as close as I have gotten.

I also agree with the sentiment about not loaning money or renting out property to friends or family.

I think that if your friend needs help, then maybe help her out but don’t view it as a business deal ya know what I mean? Otherwise perhaps just try to counsel her and help her through the tough times. Perhaps she can just give up the home, deed in lieu of foreclosure or something that will not hurt her to much.

SD Realtor

[SD Realtor]

stopthebubble – no I have not personally been involved with second trust deeds or any equity sharing deals. I do know people who have carried back financing on sales and I always referred them to an attorney to generate the note. That is about as close as I have gotten.

I also agree with the sentiment about not loaning money or renting out property to friends or family.

I think that if your friend needs help, then maybe help her out but don’t view it as a business deal ya know what I mean? Otherwise perhaps just try to counsel her and help her through the tough times. Perhaps she can just give up the home, deed in lieu of foreclosure or something that will not hurt her to much.

SD Realtor

[4plexowner]

I enjoy watching Judge Judy and Judge Joe Brown

Which of these shows will you sue your ‘friend’ on after they find a reason not to pay you back?

I’ll be sure to tune in and watch

[4plexowner]

I enjoy watching Judge Judy and Judge Joe Brown

Which of these shows will you sue your ‘friend’ on after they find a reason not to pay you back?

I’ll be sure to tune in and watch

[Chris Scoreboard Johnston]

Loaning money to friends is never a good idea, regardless of the dynamics of this individual situation. The exception would be that the amount is so trivial to you that if it completely vanishes you will not care, and it will not effect your feelings toward the person at all. I speak from experience in this area, although it was not an RE transaction.

As to the merits of the transaction itself, it is my feeling that this is no time to try and make money in RE. Buying into something that is declining, which also has poor fundamentals, is not a good backdrop for a profitable investment.

[Chris Scoreboard Johnston]

Loaning money to friends is never a good idea, regardless of the dynamics of this individual situation. The exception would be that the amount is so trivial to you that if it completely vanishes you will not care, and it will not effect your feelings toward the person at all. I speak from experience in this area, although it was not an RE transaction.

As to the merits of the transaction itself, it is my feeling that this is no time to try and make money in RE. Buying into something that is declining, which also has poor fundamentals, is not a good backdrop for a profitable investment.

[Bugs]

If you wanted to view this strictly in terms of dollars and cents your first step would be to get an appraisal of the property. And by “appraisal”, I mean an appraisal that includes an exhaustive analysis of the supply/demand, listing vs. sales prices, lots of really similar comparables, etc.. This would not be a good assignment to shop around for based on the amount of the fee – you would want to find the old pro and pay their price.

Just guessing, but I wouldn’t be surprised if the $1mil turned out to be a lot less, which of course would cut into your returns.

[Bugs]

If you wanted to view this strictly in terms of dollars and cents your first step would be to get an appraisal of the property. And by “appraisal”, I mean an appraisal that includes an exhaustive analysis of the supply/demand, listing vs. sales prices, lots of really similar comparables, etc.. This would not be a good assignment to shop around for based on the amount of the fee – you would want to find the old pro and pay their price.

Just guessing, but I wouldn’t be surprised if the $1mil turned out to be a lot less, which of course would cut into your returns.

[cr]

stop_the_bubble_hype,

Just curious. Where in LA are the properties, and what are they? SFR? Condo? Mutliplex?

It’s a longshot because even if it is what I am looking for, they likely want to make 100K on each property.

[cr]

stop_the_bubble_hype,

Just curious. Where in LA are the properties, and what are they? SFR? Condo? Mutliplex?

It’s a longshot because even if it is what I am looking for, they likely want to make 100K on each property.

[speedingpullet]

I’d echo others comments on not lending money to friends – it never ends well – unless you’re willing to just donate the money to her (which I’d hazard a guess you don’t want to do).

Urge her (strongly) to sell off the property(s) and see what her financial situation is like after the sale(s). Until then, she’s just in limbo.

[speedingpullet]

I’d echo others comments on not lending money to friends – it never ends well – unless you’re willing to just donate the money to her (which I’d hazard a guess you don’t want to do).

Urge her (strongly) to sell off the property(s) and see what her financial situation is like after the sale(s). Until then, she’s just in limbo.

[stop_the_bubble_hype]

Cooprider14,

The property I am speaking of is a Multiplex (4 units) and it is located in what I would consider an average neighborhood. Between Fairfax and La Brea, southeast of Pico. There is only 1 other multiplex on her street though there are several duplexes. Each unit has individual garage parking. Not sure where her other property is located, but I’m assuming it’s the same vicinity.

She thinks she can make about $200-300K on each property.

[stop_the_bubble_hype]

Cooprider14,

The property I am speaking of is a Multiplex (4 units) and it is located in what I would consider an average neighborhood. Between Fairfax and La Brea, southeast of Pico. There is only 1 other multiplex on her street though there are several duplexes. Each unit has individual garage parking. Not sure where her other property is located, but I’m assuming it’s the same vicinity.

She thinks she can make about $200-300K on each property.

[ibjames]

don’t do it

[Author]

Posts