angeles (3)

REO listing assignment limits to radius

             I am sure you've heard stories about an REO agent in San Diego getting a listing assignment in Los Angeles, I am just really curious to see how many mile radius the asset management companies/banks are limiting you to I have had some companies cut back from 30 to 15 miles from office. Does anyone use their home address? If so how do they get away with it? I would like to hear seom of your feedback. Thanks, wish you all a productive 2011.

 

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How to traverse the nightmare that is the Los Angeles Housing Department’s REAP Program

The other day a good friend of mine challenged me to write a journal. I have never been a person wholiked to write anything down, I figure, let’s just sit down and talk about it.Well after going through the process of pulling a few properties out of the LosAngeles City REAP Program, I decided that I would write about theexperience. Man oh man, what anexperience that was.

Let’s first discus what the REAP Program actually stands for. The REAP is a rent escrow account program that is administered by the Cityof Los Angeles Housing Department. Theonly way to even get put into the program is when your property, or theproperty you are representing, has had violations that were not taken care of. Once you have not complied with the demandsof the Housing Department (they do give you a chance) you are done. When theREAP Department starts collecting your rents and have placed a “cloud” on yourtitle, well now the real fun begins.

Where do I start? Let’s start with the day your nightmare began.

You wake up to a new REO listing, “YEAH”. It’s a multi-family dwelling located within Los Angeles City boundaries, “Oh no!” You check the Housing Department’s websiteand find out that the property has some issues and it is in the REAP Program.“Oh Boy! Now for the fun.” Oh, did Iforget to tell you that there is now a “Cloud” on the title, so forget abouttraditional financing options for your buyers. OK, now what do you tell theseller, (remember they have taken back the property and are now considered theowners, and guess what, they are responsible for the REAP and all of theproperties issues.) So you tell the Asset Manager the truth and they respond likeArnold from Different Strokes, “What you talkin’ bout Willis?” Thenthey snap back to reality, they either tell you to sell the property forcash. That’s so they don’t have to dealwith the title issues, but then you have to find an all cash buyer and/orsomeone who is going to deal with the REAP on their own (scary thought) or theyclear the title and get top dollar for the property.

So now let’s get the property out of the REAP Program and clear the title so you can sell your property. Now we have to deal with the Systematic Code Enforcement Program. Thisis pretty much where it all began for you. You have to get a copy of the previous violations and/or have theproperty re-inspected so that you can find out what the violations are. Thenyou fix the property and have it re-inspected by the Housing Inspector. Onceyou have cleared the Housing Inspector, you need to contact the OutreachContractor and have the property re-inspected by them. (Now understand thatmore than likely you have had a Building & Safety Inspection because youneed to get your permits signed off and you have had a Housing Department inspection,ok sorry I digressed for a moment, too many inspections). Ok the OutreachContractor has signed you off, now what? Make sure that all of the DWP bills on the property are paid, I mean allof them (and I don’t care who’s name they are in). The Housing Department alsohas an UMP Program (Utility Maintenance Program) that you must not be in; ifyou are then pay the bill. OK, now you have made sure that you don’t owe, DWPbut did you check to see if you owed the Housing Department any money? Well youneed to check that little bit of information. Ok, now we are cooking withgrease. You have paid the HousingDepartment bill and now they will clear you for removal from the REAP Program.Ok they refer the property to the City Council and recommend removal from theprogram. YEAH! well no , not yet. Oncethe property has gone through City Council and you have been cleared, you stillhave a few more steps to go. Now you have to wait, yes I said WAIT 30 daysuntil you can even ask the Housing Department if you owe them any moremoney. Yes, I said it; you may still owemore money. What you say, you just PAIDthe Housing Department. Well you will have to pay them again, yes again, tofinally remove your property from the REAP Program and remove the “Cloud” fromthe title. Once issued, this “Demand for Payment” is good for 30 days. You hadbetter get your loan funded within that 30 day window or pay the final demandamount, if you don’t, then there will be penalties and you will owe more money.But once paid, the Housing Department will remove the “Cloud” from the titleand you are REAP free. The moral of this story is if you own a multi-familydwelling within Los Angeles City Boundaries, “TAKE CARE OF YOUR PROPERTY,COMPLY WITH ANY AND ALL NOTICES FROM THE HOUSING DEPARTMENT AND KNOW THE RIGHTSOF A PROPERTY OWNER AND THE RIGHTS OF YOUR TENANTS.”

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In most cases the Fears Of Shrinking Industries, Your 401k and Real estate Investments go hand in hand. With the current state of job securities, massive lay offs and the fear of what to do next is most thought about and one of our biggest worries today. I recently read an article about a husband and father of two who had worked in his industry for well over 20 years, and was suddenly laid off and his 401k was reduced to nothing. He was facing his biggest fears of his life, what was he going to do, his family was depending on him. His wife a stay at home mom was forced to look for work and after 5 months she did find a part-time job in the retail industry for holiday shopping. The husband on the other case sought processional job counseling and after submitting application upon application he was actually spinning his wheels and going no where fast. He sought training in a new industry and this was the key. To this day he is getting back on track, he made an investment with the savings he had into real estate and he and his family are very happy that he did.We never think about our 401k's until it is too late. Many of us never thought to open it or have any idea about what we would do with it. Of course retirement has it's benefits, unfortunately in today's hard and trying economy most of us will not have the opportunity to retire from our industries. With shrinking industries we must take the first step to secure our futures. It is time to open your 401k pull out your money and put it to work for you unless you want to continue to work for your 401k. Don't wait until it you open your pay envelope to see the infamous 'PINK SLIP'I would like to introduce you to a few ideas i came across a few weeks ago. REO agents ace also become real estate Investors. The downloads I am including will introduce you to and fortify your beliefs and realistically show you how you can benefit from these free downloads and course materials. Within this link you will find many useful resources that you could incorporate in your current industry or pass on to someone you know with an interests in real estate.Free Web Bonus PackFree e-Book: How To Create Multiple Streams of Income Buying Homes in Nice Areas with Nothing Down!https://mfg.infusionsoft.com/go/FreeWebBonusPack/cdnsi/Ultimate Investors Boot CampLearn Multiple Ways to Buy Homes with Little or No Money at the Ultimate Investors Boot Camphttps://mfg.infusionsoft.com/go/UIB/cdnsi/
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