experienced a foreclosure for several years thereafter. If there is not enough money from the sale of a distressed property to settle the encumbrances—what is owed and tied to the property—creditors can seek personal judgments against the property owner for debt settlements unless that distressed property owner filed for bankruptcy. Timing is everything in the distressed property market because property owners are in need of help right away. Their urgency can make them very open to a win-win deal that can help them avoid a black mark on their credit and could allow Sub-Series LLC to step into a rental property far enough below market value that it can expect good monthly cash flow. Only bankers and real estate agents make money on foreclosures because they have the inside scoop. Bankers make their money on loans, not on holding property. Real estate agents primarily make money on real estate transactions, not buying and holding property for cash flow. There are plenty of opportunities if the Parent LLC knows where to look. It only takes one great foreclosure to create a powerful stream of positive cash flow. If the Parent LLC learns some key details about the foreclosure process and learn to collect leads from a variety of sources, it can find a number of good properties that could be cash flowing assets. Purchasing a distressed property will pose special challenges. Parent LLC will be responsible to resolve any unpaid mortgage and punitive fees. It will have to settle any liens against the property. It will be required to do its homework to have a clear and complete knowledge of any encumbrances attached to the property. The Parent LLC should be willing to face and solve these kinds of problems, then foreclosed properties can help to generate significant cash flow. If the Sub-Series LLC buys a foreclosure and use it as a rental unit and receive cash flow, then the Sub-Series LLC is an investor.
November 1, 2022 r 1, 2022 Business Article:
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