Mechanica Liens - Posted by Luther in NJ

Real Estate Investing
1

Posted by Barry (FL) on January 12, 2004 at 19:51:44:

You take an option on the lien and confirm that the debtor will pay before you actually purchase it.

Hope This Helps,
Barry (FL)

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Mechanica Liens - Posted by Luther in NJ

Posted by Luther in NJ on January 12, 2004 at 13:39:21:

Hello All,

I was reading the article How to Make a Bundle with Bad Paper by Joe Kaiser, and I was wondering how likely is it that someone will start paying on paper (a mechanics lien) they havent paid on yet?

I am considering investing in mechanics liens, but I am unsure how secure my initial, and ongoing investments. I would hate to put $500 dollars into a $1000 debt, and be unable to collect on the debt.

Any ideas or insights would be helpful.

Thanks,
Luther

3

Re: Mechanica Liens - Posted by Lyal

Posted by Lyal on January 12, 2004 at 20:36:56:

Luther,
The idea is to do enough due diligence to make sure the lien is enforceable, buy at a discount price, then negotiate with the owner to try and “come to an agreement”. If he won’t be reasonable, you foreclose.

You need to do some research on your local mechanic’s lien statutes and process to be sure you know how it works.

As I recall, in Joe’s locale, you get to add attorney’s fees of 1500 bucks or so right off the bat. That helps to make it worthwhile. Can’t do that in my area so you really need to cherry pick.
All the best, Lyal