Anyone ever have to file BK? - Posted by Anon

Real Estate Investing
#1

Posted by Stan (Ga) on June 18, 2007 at 13:55:19:

Dont think I would risk my financial future to a lawyer advertising out of the yellow pages. You need a referral from local investors. Find out the attorneys that they use. Make sure that they have experience dealing with creditors. You say that you have attorneys threatening to pierce the corporate veil? Should not be that difficult for them to do since you personally guaranteed the loans/credit cards. Would probably take them about 20 minutes. I say that to say this. Get your attorney yesterday. Start negotiating with those creditors. Check into the possibility of a forebearance on your mortgages. Get those suckers sold now.

#2

Anyone ever have to file BK? - Posted by Anon

Posted by Anon on June 17, 2007 at 18:02:51:

My real estate business is in a real jam. We have 3 houses rehabbed and on the market. No money coming in. No renters interested as these are in war zones… I messed up.

I financed about 25k on credit cards that were in the business name but I personally guaranteed.

I have about 10K in yellow page advertisement from LAST year…

These 3 mortgages, taxes, insurance, marketing to sell…

I’m totally in a rut.

Over the last year I have not been very active other than these deals here. I am totally tapped out.

I have started a landscaping business which is making good money.

Its been suggested I go wholesale something…

I would like to but with the current financial crunch I’m involved in I can’t even fathom the idea of misrepresenting myself as someone who can buy all cash, close quickly, etc… if I am in such a bind.

I have lawyers calling me threatening to “pierce the corporate veil” and come after me personally. They’ve even mentioned “pending lawsuit”.

I’m not sure what I should do.

#3

Re: Anyone ever have to file BK? - Posted by Tim

Posted by Tim on June 18, 2007 at 10:57:52:

Cant the private party take the properties and your issues should be over?

You obviously got in over your head and need immediate answers. Deed the properties to the private lender and get a second job delivering pizza’s or somthing till you pay off the rest of your debts. You can make 1000 a month doing that if you tried.

After you do this for a few months go wholesale, get back in the game and learn from your mistakes.

Good luck,
Tim - VA

#4

Re: Anyone ever have to file BK? - Posted by Sailor

Posted by Sailor on June 18, 2007 at 08:22:00:

Refer the telephone terrorists to your attorney’s office. Note the folks calling are probably not attorneys. Contact each of your creditors & work out each situation. Lenders w/probably accept short sales, & if the properties are priced low enough, they’ll sell in spite of location. Since advertising debts don’t involve “hard goods,” they can often be negotiated down significantly. However, if you are still using the same co. name & phone #, they’ll probably hold fast.

I don’t know where you are located, & that can be a really important consideration on handling the mortgages. You definitely need a chat w/your attorney, & if he/she doesn’t specialize in this area, you need to find one who does. Time is really critical, as your options w/decline the longer the situation is not addressed. Make your appt. today & just resolve to do what is necessary to put this behind you. Good luck!

Tye

#5

Re: Anyone ever have to file BK? - Posted by IB (NJ)

Posted by IB (NJ) on June 18, 2007 at 06:57:00:

I agree with RJB.

Also: Wholesale something. I know it’s tough but you won’t be misrepresenting yourself at all. You will be partnering with cash buyers and flipping the properties to them for a fee that the BUYER pays (not the seller). This is what you will be telling your sellers. No misrepresentation at all. And 1 or 2 wholesale deals can put you in the clear. Consider that as an option before you file BK.

Ib

#6

Have faith… - Posted by RJB(MA)

Posted by RJB(MA) on June 17, 2007 at 18:23:00:

You can get through this, but first you have to believe.
Talk to your creditors to get more time and better terms, get your properties rented or sold (lower the rent or price if you have to, but get it done), and get yourself to a good lawyer for a sitdown discussion.

Bankruptcy is the last resort. Sometimes it’s necessary, but it is to be avoided if at all possible.

Buck up! Fight on! It’s amazing how answers to your problems can appear if you really put out the effort to find them. Believe.

RJB

#7

Re: Anyone ever have to file BK? - Posted by Anon

Posted by Anon on June 18, 2007 at 10:28:53:

In the state of Flori-duh!

I don’t have an attorney yet… I will be flipping through the yellow pages today to find one.

Both mortgages are privately held by an individual.

#8

BK…not needed. - Posted by acw

Posted by acw on June 18, 2007 at 20:33:38:

Remember what Donald Trump did? He made partners with the Lenders…they don’t want your property back.

I’m not sayiing that this is the case…but its possible to negotiate with lenders.

Also, consider wholesaling those properties.

There’s a way out…strenghten your faith.