The deadline has come and gone for applications to the fund. This marks the end to my push to raise money, now I am focusing on making it. Over the next few weeks, I may take on a few late subscribers if I am under my sophisticated investor limit. The absolute closing date of the fund is the day I close on the first property and there is profit and loss. No subscription funds will be taken after that time. Many subscribers are processing self-directed IRAs and this processing takes a few weeks. There is still time, but don't delay.
I want to thank everyone who contacted me and requested information. I met with many wonderful people over the last several weeks. One of the unique joys of this hobby is being famous in a circle of people. It's always fun to talk to people that genuinely appreciate the work I do.
Self-Directed IRAs
The most common questions I was asked over the last several weeks concerned self-directed IRAs. For self-directed IRAs, I recommend any of the following:
I have used all three of them at one time or another. Entrust is a bit more expensive, but they also have a local office where you can go and meet with someone. Both IRA Services and Sterling Trust are very inexpensive.
Usually, I don't think much of the foreclosures I have profiled because they are mostly Ponzis. I don't cherry pick those properties, it's just how the people were. They are the rule not the exception. Today's featured property didn't have HELOC abuse. It was a responsible borrower who must have fallen on hard times. The loan modifications failed, and the owner lost the property. This is the elusive hapless victim of circumstance the mainstream media is always looking for. She did nothing wrong, but she is losing the house.
This property was purchased for $182,000 on 8/14/1998, close to the bottom last time. The owners used a $172,900 first mortgage and a $9,100 down payment.
On 8/9/2005 the remaining owner refinanced the first mortgage for $175,000. That represents very little cash out given what was going on around her.
On 10/2/2006 she was granted a $50,000 HELOC, but there is no evidence she used it; although, once she ran into trouble paying the first mortgage, I could see where that HELOC would be a handy Ponzi loan.
Foreclosure Record Recording Date: 07/07/2010 Document Type: Notice of Sale
Foreclosure Record Recording Date: 06/07/2010 Document Type: Notice of Sale
Foreclosure Record Recording Date: 11/12/2009 Document Type: Notice of Default
Foreclosure Record Recording Date: 11/05/2009 Document Type: Notice of Default
Foreclosure Record Recording Date: 04/28/2009 Document Type: Notice of Rescission
Foreclosure Record Recording Date: 04/10/2009 Document Type: Notice of Sale
Foreclosure Record Recording Date: 01/07/2009 Document Type: Notice of Default
This property sold at auction for $319,000. There is a chance that this owner actually had equity after everyone was paid off. There is no telling how much in fees was charged to her loans while she was delinquent. You have to imagine the bank got it all.
Home Purchase Price … $182,000 Home Purchase Date .... 8/14/1998
Net Gain (Loss) .......... $189,300 Percent Change .......... 104.0% Annual Appreciation … 6.1%
Cost of Ownership ------------------------------------------------- $395,000 .......... Asking Price $13,825 .......... 3.5% Down FHA Financing 4.52% ............... Mortgage Interest Rate $381,175 .......... 30-Year Mortgage $77,378 .......... Income Requirement
$1,936 .......... Monthly Mortgage Payment
$342 .......... Property Tax $0 .......... Special Taxes and Levies (Mello Roos) $33 .......... Homeowners Insurance $330 .......... Homeowners Association Fees ============================================ $2,641 .......... Monthly Cash Outlays
-$311 .......... Tax Savings (% of Interest and Property Tax) -$500 .......... Equity Hidden in Payment $23 .......... Lost Income to Down Payment (net of taxes) $49 .......... Maintenance and Replacement Reserves ============================================ $1,902 .......... Monthly Cost of Ownership
Cash Acquisition Demands ------------------------------------------------------------------------------ $3,950 .......... Furnishing and Move In @1% $3,950 .......... Closing Costs @1% $3,812 ............ Interest Points @1% of Loan $13,825 .......... Down Payment ============================================ $25,537 .......... Total Cash Costs $29,100 ............ Emergency Cash Reserves ============================================ $54,637 .......... Total Savings Needed
Property Details for 187 ROCKWOOD 64 Irvine, CA 92614 ------------------------------------------------------------------------------ Beds: 3 Baths: 1 full 1 part baths Home size: 1,260 sq ft ($313 / sq ft) Lot Size: n/a Year Built: 1983 Days on Market: 43 Listing Updated: 40437 MLS Number: U10003600 Property Type: Condominium, Townhouse, Residential Community: Woodbridge Tract: St ------------------------------------------------------------------------------ One of the most desirable neighborhoods in Irvine. Don't miss out on this amazing townhome which is the largest model in the tract. Spacious open floorplan with large Living Room with cozy fireplace and seperate eating area. Desirable kitchen with stainless steel appliances and plenty of cabinet space. Near parks, tennis courts and pool & spa. Motivated seller will consider all offers.
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