Our Local Hero Wins for Disabled Senior Citizens

My friend and associate, Anthony Marler, won justice without having to go to court.

Do you remember my first blog post about this? Anthony was denied development rights to his land after the city council declared it a "wetlands." The city attorney warned them that Anthony could sue and that the council's position was indefensible.

Did the city council listen? No-o-o-o-o-o-o!

So, Anthony sued in federal court.

It wasn't much of a fight.

The city capitulated.

Quickly.

Without a fight.

Farr West council permits assisted-living facility - Standard-Examiner

Now the only question is: How much will it cost the citizens for Farr West to pay for the stupidity of their elected officials?

Beware the Homeowners Association

Did you know that a home owners association can foreclose if you don't pay dues?

They can regulate your lawn? Your garbage?

They can have a "special assessment" that MUST be paid, regardless of how much it is?

Read this, it's a real eye-opener...

Neighbor vs. neighbor as homeowner fights get ugly | The Salt Lake Tribune

Have you ever had a run-in with an association?

Far West City Hates Senior Citizens?

Anthony Marhler is a business associate of mine. He is honest and poured a lot of money into the development of this project only to have it rejected over fear of 24 dissabled senior citizens.

Read the full article:

OUR VIEW: NIMBY anger - Standard-Examiner

He should be allowed to build. What's your opinion?

Bank of America vs. Citizens of Utah: Continued

Once again, the private sector comes through! The Utah attorney general's office threatened to sue Bank of America, but the Salt Lake City law firm of Mumford West & Snow struck the first blow last week.

Learn more from our friends at the Salt Lake Tribune.

Utah law firm sues to halt Bank of America foreclosures | The Salt Lake Tribune

So, who has a mortgage with Bank of America?

Utah vs. Bank of America: Round 2

As far as government goes, the State of Utah has a good one! They are fighting for the rights of its citizens to have a local office to work with if they are facing foreclosure!

I posted last week that Bank of America is IGNORING a court order to STOP using out of state foreclosure services! When I posted this on Facebook I said "Maybe Utah should SHUT DOWN all Bank of America foreclosures!"

Well, someone must have read my blog because now the attorney general is suing Bank of America to stop using out of state foreclosure processors.

Click here to read the original Salt Lake Tribune article.

Well, don't you love it? A small state sticking up to a GIANT bank to defend it's citizens!

Afraid to Foreclose or Evict? Don't Be!

Sometimes real estate investors are afraid to take action to evict a renter or foreclose on a house they sold on contract. Where does the fear come from? Ignorance of the facts.

Fear that Your Renter/Buyer Will Become Your Enemy

A renter or buyer should neither be your enemy, nor your friend. They should only be viewed as the custodian of your hard-earned asset. They agreed to pay your for the use of the asset while they care for it.

Taking legal action doesn't mean creating an adversarial relationship. Legal action is an extension of the business relationship. Here is an example of how to communicate and maintain a good relationship:

"Mrs. Jones, I understand that you intend to pay the rent on the 15th day of the month, instead of the 1st, when it was due. We'll look forward to receiving the rent on the 15th. In the mean time, you'll understand that we are giving you a 3 day pay or vacant and moving forward with the eviction process. As you as you have paid the rent, we'll be able to stop the process. We look forward to having you live in this home for a long time."

Fear that Legal Action Will Delay Your Payment

I've talked to landlords who say, "They promised to pay and I am afraid that if I start eviction they'll decide to leave and I won't get paid. So, I will do nothing and if they don't pay me next Friday I'll take action then."

The opposite is true. For people who are concerned about paying the rent, they will find the money from friends, relatives, selling something, etc. The legal action becomes a fire that lights them into action.

The other tenants are never going to pay, so the faster they are out, the sooner you have good tenants that will pay you.

Fear That Eviction or Foreclosure Costs Too Much

Not taking action costs more. If your rent is $800/month and you wait for two weeks to take action, you just lost $400. In the state of Utah an eviction takes 3 weeks. Late on the first? Have them out and re-rent the house by the first of the next month. Need help? Attorney Ron Dunn will evict for $450. Tell him I sent you and he may give you a discount. Same fee for a foreclosure. You pay filing costs, he does the rest.

What are your issues with foreclosure or eviction? Share a success story.

Warning: A Joint Venture Disguised as a Loan

First I want to disclose that I am not an attorney and that you should consult an attorney when you form a business entity, sell shares, enter partnerships, etc. With that out of the way, I here are some observations about an opportunity I received to "borrow" money that turned out to be a joint venture with a business partner and that needed to be bought-out five years down the road.

The Offer

I received an e-mail about three weeks ago with the following offer to borrow money:

• $300 application fee, refundable if loan did not go through
• 100% LTV using a CMA or BPO, no appraisal needed
• 3% interest-only, 5 year term
• Letter documenting cash equal to 20% of loan is available in a financial institution
• Loan to be paid back in 5 years, with an option to convert to a conventional 30-year loan at 5% interest
• 30 days to underwrite and fund

Sounds to good to be true, right? As usual, there was a lot more to this than initially presented.

The Reality

The reality is that the “loan” became a four page “Joint Venture Agreement.” The exit strategy to the “loan” was paying-off the joint venture partner or taking him on as a permanent partner with a 50/50 split.

I talked to two attorneys, one a real estate attorney the other a securities attorney. Both told me that a “Joint Venture” is a general partnership, which means that both parties become liable for actions of the other party.

When I questioned becoming a general partner with a “lender” the response was “This is not a general partnership, just look at paragraph 5.” Well, paragraph 5 says:

“Neither the Joint Venture nor any of the Parties shall have authority to create any obligation for one or more of the other Joint Venture partners.Neither the Joint Venture nor any of the Parties shall be responsible or liable for any indebtedness or obligation of the other Parties, individually or collectively, incurred either before or after the execution of this Agreement.

In other words, forget hundreds of years of statutory and common law, we are going to agree that we are not liable for each other. Sorry, but you cannot make your bad breath go away by simply stating that it doesn’t exist!

The Bottom Line

Is this a "scam?" I don't know if it is a way to take your money, your property, or both. It could be totally legitimate. What I do know is that it was very poorly executed and that it is a securities transaction regulated by the State of Utah and the SEC. As my lawyer, Kevin Timken has taught me, be very careful of business transactions involving entities and borrowing or lending money. They are very highly regulated and occur even when you are not aware of them.

I signed a confidentiality agreement so I won’t disclose who these people are.

Two lessons learned:

1. If it sounds too good to be true, it probably is. (Not a new lesson, but definitely reinforced.)
2. By very cautious with any money making scheme coming out of Provo orOrem, Utah.

Have you heard about a loan program like this? Do you know of any other incredible “business opportunities” circulating right now that others should stay away from?