Michael T. Morrongiello - Posted by Doug Rink

Posted by oneal hodges on June 12, 2006 at 21:24:09:

hello mike thanks . cash not at this time. but mike i never count myself out of anyting i believe i can pull the deal of with alittle help from you steerng me in the right direction. i live 3hours from GA. i go there alot. i’ll get due-diligence going. hard money lender who you recommend. i like to flip this deal quickly.

Michael T. Morrongiello - Posted by Doug Rink

Posted by Doug Rink on June 10, 2006 at 21:31:28:

Hi Mike,
I think the market “we” (you and I in the mid 90’s) is coming back to the “simultaneous-closings” As you might remember, we’d create a note and sell it all at one closing. Since that time, conventional “thinking” and financing had, until recently, taken over the way we used to do it. Where is Eddie Speed when you need him? Is the market for “simultanious notes” back? Do the investors dare give us a yield ITV matrix? Can we now make money in newly create real estate notes like you and I did in the 90’s “big hair” days? And if so, where;s the investors?
and someone tell Judy Miller I still love her.

Your long time friend and student from NC
-Doug Rink
Newton, NC.

New “paper” - Posted by Michael Morrongiello

Posted by Michael Morrongiello on June 12, 2006 at 13:26:00:

Doug:
We’ve continued to purchase new unproven Real Estate secured “paper” even thru these low interest rate days… It never really went away. We still buy newly created notes…

However there are “seeds of change in the wind” Yes the lenders underwriting criteria (based upon edicts from the FED, Department of Banking, and other beauracacies, etc.) is making it VERY clear to the lending community that they MUST tighten the “noose” and stop the fast, loose, and relaxed, underwriting and loan programs being offered. There will be shake out over time in many markets around the country as a result - heck its already happening.

This will undoubtebly create more opportunities for the savvy RE entrepenuers who UNDERSTAND how to effectively use the power of “paper” to both get them IN and OUT of properties by creating their own financing. Those that have relied too heavily on all of the attractive loan programs of late and have become myopic better brush up quickly…

Let the good times roll…

Michael Morrongiello
Author of the Unity of Real Estate & “paper” home study course

New “paper” - Posted by oneal hodges

Posted by oneal hodges on June 12, 2006 at 19:28:18:

hello mike found a deal in fulton county ga. area home needs $48k in repairs. seller asking $125k for home worth $285k to $300k fixed up. how can i do this deal. or how about collateral conversion no my credit is not good. maybe i can joint-adventure. home will have $112k profit after repaired.

Re: New “paper” - Posted by Bob Smith

Posted by Bob Smith on June 12, 2006 at 15:16:52:

>Yes the lenders underwriting criteria (based upon edicts from the FED,
>Department of Banking, and other beauracacies, etc.) is making it
>VERY clear to the lending community that they MUST tighten the
>“noose” and stop the fast, loose, and relaxed, underwriting and loan programs being offered.

How has that affected the underwriting and pricing of the (secondary market?) buyers for your portfolios?

Re: New “paper” - Posted by Doug Rink

Posted by Doug Rink on June 12, 2006 at 14:12:33:

Mike,

Thanks for your assestment and I concur. I know you are a very through underwriter (remember the Winston Salem deal you bought from me in NC?) Please make sure I have a way to run deals by you again. Are you operating Sunvest still or…(you can copy email me if you want without the posting)

Thanks again. Godd to see you’re still buying-advising.

~DR

Fix and Flip - Posted by Michael Morrongiello

Posted by Michael Morrongiello on June 12, 2006 at 21:03:24:

O’Neal:
Sounds like the deal is better suited for a HARD MONEY lender to make you a loan to acquire the property and the some additional funds to FIX up the property. Do you have any of your own cash to put into the deal and are you local to the property?

Another option is to get the property tied up under contract (which is assignable) and them simply “wholesale” the deal to a local investor who will take it from there and earn the lions share of profit.

Michael Morrongiello

mike morrongiello./new paper - Posted by oneal hodges

Posted by oneal hodges on June 12, 2006 at 19:30:29:

read the first post mike please

Re: New “paper” - Posted by Michael Morrongiello

Posted by Michael Morrongiello on June 12, 2006 at 15:27:55:

Bob:
Yes, underwriting has tightenend up - with the rising interest rates those holding fixed rate long term notes should expect LESS money for their Notes…

Warmly,
Michael Morrongiello