I'm working a ex tax-defaulted vacant lot in Southern California. It has two private loans on it, both recorded in 2018: - 1st: about $617K, split among five private lenders: - Lender A: 38.9%. He's also tied to the borrowing entity and is the trustee. - Lender B: 20.6%, held in a self-directed IRA. He's in his 80s. - Lender C: 16.2% - Lender D: 16.2% - Lender E: 8.1% - 2nd: about $265K seller carry, held 100% by one LLC. What went wrong the first time: I had the lot under contract with the owner, who is also the person who raised the private money. We ended up canceling. He had no servicing agreements on file, so nobody had clear authority to sign payoffs or releases for the lenders. The lenders themselves were hard to pin down, too: several are out of county or out of state, and at least one was reportedly deceased. Without everyone on the 1st signing off, we couldn't get clear title. The workaround I'm considering: the 1st's deed of trust says the lenders agreed in writing to be governed by holders of more than 50% of the beneficial interest on default, foreclosure, and sale, "including designation of the broker, servicing agent, or other person acting on their behalf." That's the Civil Code 2941.9 language. 1. Buy Lender B's 20.6% out of his IRA. He directs his custodian to sell, and I'm not a disqualified person. 2. Buy Lender A's 38.9%, or get him to vote with me. Together that's 59.5%, a majority. 3. Use the majority to appoint a servicer, then approve a short payoff or short sale and take the lot, or foreclose if needed. A foreclosure on the 1st wipes out the 2nd, which gives me leverage there. Questions for the group: - Has anyone used a 2941.9 majority to appoint a servicer and push through a payoff or foreclosure over missing or non-responsive minority lenders? Did title insure it? - If a minority lender is deceased, does the majority clause get around needing their estate to sign, or does title still want probate or a successor? - What are the gotchas with buying a fractional interest out of an IRA (custodian timing, paperwork)? - Lender A is on every side of this. How would you protect yourself? - Is there a risk of merger of title if I hold part of the note and then take title? - Anything I'm missing on the tax-default side?

Anyone work Visalia,CA ?

I just got back from a fun weekend where I got to hang out with some of my favorites investor/friends. Not only are they amazing investors with 8+ figures in net worth,(one has incredible experience and skill in curative acquisitions ) but they are also incredibly generous & lovely human beings. Our topics for discussion revolved around how we have all witnessed so much over the last few decades & to try to distill some wisdom from what we observed & personally experienced. We discussed a wide spectrum of topics: market cycles, investor psychology & mindset, unpacking why we think some have thrived, why some people we know quit investing & everything in between. I'll be fine tuning my notes & share some thoughts at out next Happy Hour. I hope you can join!

https://www.secounselors.com/about-the-society/sec-bookstore/ Some of these books will twist your brain on how transactions can be engineered.

Peter Fortunato is teaching a SPECIAL One Day Class at NCE - National Council of Exchangors - Fall Conference In Las Vegas on THIS COMING Monday 10-19-26. He rarely teaches the use of real estate acquistions and dispositions along with exchange concepts in this type of setting. Become a Better Real Estate problem solver and do not miss this RARE opportunity to Listen and Learn from Master Dealmaker Peter Fortunato. It almost FULL and Seating is LIMITED- at $250.00 per person. For more Details or to Register: https://docs.google.com/forms/d/e/1FAIpQLSciIpN86Cihn68AU4CsvTZ4CAcaMeVvOPFntModjWCVFXWRLg/viewform?usp=publish-editor