Conflict Of Intrest - REO Property Preservation Forum
 
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post #1 of 8 (permalink) Old 05-29-2015, 01:05 AM Thread Starter
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Conflict Of Intrest

Here is my question to you seasoned vets out their in the P&P industry.

I have access to a mobile home park that i know is in foreclosure, i also know that it has a violation on the park, a major code violation that i can cure at a reasonable price. which is noted on park entrance.

I have be asked by one of the company's that i work for to cure this violation, but if it is done threw the service company it going to cost a heavy fee for me to do the work. The city in question has changed some rules governing the mobile home parks in this area recently.

I also know its s a failed partnership which will in up in a forced bankruptcy court ordered sale.

Now here is my question, how should i approach the bank about buying the park with out them know all the info i have on the part? going to owner at this point is out of the question, but i do know that its listed on Zillow as being in pre-forcloser.

I all so know the tenants are making the rent payments direct to the bank. I also know as per zillow and the tax map number and taxes paid last year that their this is a fairly sizable income producer.

I also have the cash to buy the park out right at this point. I know this because the park was sold to the new owners last year, and the selling price is listed.

i was wondering if this would be a conflict of interest, and what would be the consequences of such a buy out.. also i have a 2nd corporation already set up under a different name for my rental properties which i could use to buy the park.
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post #2 of 8 (permalink) Old 05-29-2015, 06:00 AM
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I don't see it as a conflict of interest at all. A conflict would be say, you were assigned the property by the bank and you were doing repairs on it, so you could buy it from them. IOW you could falsify work needing done with work wanted done but getting the bank to pay for it.

But just because another approached you to do some work and you haven't done any work, it is just the same as if I told you of a property I know of.

Sounds like an awesome opportunity! I wish you well in your endeavors!
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post #3 of 8 (permalink) Old 05-29-2015, 07:15 AM
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What's the conflict again? I'm not seeing one. There should be a broker involved if it is listed and he/she should be your go to guy. I wouldn't worry too much about what name is on your offer sheet.
FWIW, I also have no issue getting paid for a property I may or may not end up owning. Done more time than I can recall.
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post #4 of 8 (permalink) Old 05-29-2015, 10:41 PM Thread Starter
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What's the conflict again? I'm not seeing one. There should be a broker involved if it is listed and he/she should be your go to guy. I wouldn't worry too much about what name is on your offer sheet.
FWIW, I also have no issue getting paid for a property I may or may not end up owning. Done more time than I can recall.

The thing is as of yet, their is no agent or broker involved. The courts have made sure this thing is in limbo for 1 1/2 years.

Monday I have an appointment with the attorney over seeing the case, which im friends with.

We will see how it goes! I think i can get first crack at the drawing rights before its hits settlement terms. Its a vary small bank, just state wide and im going to throw a bone at them by transferring one of may business accounts with them.

Funny thing is this loan falls on their business side of the loan Dept, and Ive had dealing with one of their reps in the passed when fixed a closing on a commercial building that they wanted sold asap.
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post #5 of 8 (permalink) Old 05-29-2015, 10:47 PM
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If they thought there was anything funny about it they would run it past their compliance officer. I just know in my dealings, that the banks are about money and getting the crap loans off their books. And if they happened to have paid a guy 12k to put a roof on a house before they ended up selling it to him, well, as long as the dates and paperwork all add up to show no collusion, then it shouldn't be a problem.
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post #6 of 8 (permalink) Old 05-31-2015, 05:39 AM Thread Starter
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Originally Posted by GTX63 View Post
If they thought there was anything funny about it they would run it past their compliance officer. I just know in my dealings, that the banks are about money and getting the crap loans off their books. And if they happened to have paid a guy 12k to put a roof on a house before they ended up selling it to him, well, as long as the dates and paperwork all add up to show no collusion, then it shouldn't be a problem.
Well yesterday i found out what the violation was, the county want a 6 ft high privacy fence built around the park, treat wood fence with 4x4 post. about 1678 length worth of fence, which according to the bank per the coordinator has to be put up asap.

The fence will have too have a 280 yards of brush and trees cleared before it can go up. So ive asked for a survey done to show some clearly define boundary lines before i will start any work, i did this to by me some time to get more involved the discussions of cutting loose property before an agent can get involved. Looks like the fines are pretty hefty too.

The park itself is called little Mexico because of the migrant population has taking it over, but contrary to popular belief they taken vary good care of the park and the trailers from what Ive seen. and after speaking with the neighbors they appear to be vary happy with they invasion compered with what was it was once occupied by.

So Monday im going to make my move.
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post #7 of 8 (permalink) Old 05-31-2015, 04:58 PM
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The park itself is called little Mexico because of the migrant population has taking it over, but contrary to popular belief they taken vary good care of the park and the trailers from what Ive seen. and after speaking with the neighbors they appear to be vary happy with they invasion compered with what was it was once occupied by.

So Monday im going to make my move.[/QUOTE]


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post #8 of 8 (permalink) Old 05-31-2015, 08:22 PM
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There is no conflict there...if you have the revenue to invest and you feel that is a good fit for you then buy.....

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