How to Put a Lien on a Property? - YouTube

oh i think we're live crap okay welcome to  the flipping and wholesaling houses in new  

york channel to get the mic closer where i teach  you how to start flipping or wholesaling houses  

or if you're already doing it how to grow your  business now had a very general question again  

how to put a lien on a property so you have  to understand what that means what's a lien  

and what does it mean putting it on a property so  a lien is a how do you describe a lien is a legal  

obligation that gets filed with a local county  that requires the owner of that property  

if they were to sell it or if they want to be lean  free to pay it off so the most obvious example of  

a lien is a mortgage which is called the deed of  trust in some states it's called the mortgage lead  

of trust in other states in new york we call it  a mortgage and that is a lien so the way it works  

when you borrow money what people call getting a  mortgage is you borrow money there is a note which  

says uh you owe three hundred thousand dollars at  six percent interest payable over 15 or 30 years  

and then there is a mortgage filed that is a lien  on the property where if you don't follow the  

terms of the note they can uh they can foreclose  on the property due to you not following the terms  

of the loan that's what the lien says there are  other types of lien so if you don't pay federal  

taxes you have federal tax lien and they put  that on any property that's affiliated with you  

now again these things are put there simply saying  hey we know one day the property is going to  

have to be sold right unless theoretically  keep the property for a million years um  

most liens just sit there until you want to sell a  property a mortgage lane is different because it's  

specific that if you don't follow the terms  they can't foreclose there are other places  

uh what the hell is that that noise oh there are  other liens where you can foreclose but in general  

a lien is just something that's that's filed  against the property so how do you file it so  

why would you even want to follow so in a lot of  creative financing that goes on you want to file a  

lien right there's not a lot of creative financing  in new york right because subject to basically  

doesn't work in new york spoken about that 100  times um and seller financing where you're the  

bank doesn't really work in new york because  it takes it could take 12 15 years to foreclose  

but if you want to do some sort of other creative  financing where you're going to put a lien on the  

property for example let's say you would buy  the property the seller will finance it to you  

no that's not a good example the truth is in  general it's used when you're the bank right  

so it happens a lot in the 49 states where you  you can be the bank in a state like texas where  

if you have to foreclose it takes 40 days you want  to file a lien on the property to protect yourself  

right i'm doing a deal now that's a big mess and  then one of my partners is saying we should put a  

lien on it i'm like i don't care i want the deed  i want to get ownership of the property and then  

uh people living there i don't want to bother  with the foreclosure process i just want to  

uh if they don't do what they say they're going  to do i would try to evict them hopefully when the  

moratorium ends but but a lien is the is  usually some kind of thing that you owe so  

another type of lead is a mechanics lien right  so if you are a licensed a plumber electrician  

contractor and somebody doesn't pay you you  could put a mechanic's lien on a property  

now again that doesn't give you the right  to foreclose on the property but it says  

that someday you should get paid also very often  with a lien when it gets filed interest accruing

crap and um sorry so when interest starts  accruing the lien goes up which which is  

an incentive for whoever the lien is  placed on to pay off the lien sooner  

instead of waiting for when he sells the property  in 10 years so i had a case recently where i put  

a very large deposit down on a very expensive  house in the hamptons and then i realized it  

was a title issue and i said i want my deposit  back and they refused to give my deposit back and  

then they ended up selling the house to somebody  else i still didn't get my deposit back so i sued  

them for the deposit back this was a six-figure  deposit and i won i was shocked thought i might  

lose but we won so what the court said is file uh  judgment and i we're entitled to to interest we've  

been going through the course for about a year  it's pretty quick considering maybe two years  

and um file a judgment and i can collect  interest back to the day that we gave the money  

so that those i had two options my first option  is contact the other side and say just send me  

the send me the money back all of it today or i'm  gonna file a judgment put a lien on on the i can't  

put on the property i gotta own the property  or i'm gonna file a judgment against you for  

the property for the for the entire  amount plus interest for two years  

so he they chose to just send us the money we  got the money back that day so that was good  

that was great but the point is that judgment  can become a lien so another example is uh this  

happens to me all the time you i i file uh i sue  a tenant for eviction and for non-payment right  

so they don't they owe me money right they owe me  a few thousand dollars and the judge finds in my  

favor to evict them and the monetary judgment for  three thousand dollars so they give me a judgment  

i have to then go get a transcript of judgment  then i have to go to the county clerk and file  

that transcript of judgment so that it becomes  an official lien that i can go collect right and  

then how you collect is even more complicated and  also that you go get tenants out it's complicated  

you have to get the sheriff to get them out so you  get a warrant for possession i have judgment for a  

monetary i'm by the way i've never collected on  any of those judgments because most people just  

don't have any assets but you can do that it's  probably not even smart anymore the truth is i  

don't want to bother with monetary judgments  but i use it as a tool for i use it as a tool  

to get people out so what happens all well  i don't want to give away all my secrets but  

the point is you have to follow this link so  it has to be followed with the county clerk  

and you have to have some reason to file a lien  you have to you can't just i can't just be john  

smith and file a lien against some rich guy in  my neighborhood i have to have a reason that the  

court has to order it and then i'll put that line  unless you're a mechanic in which case you have a  

very very easy time to put a lien on the property  which sometimes sucks because very often what  

happens a lot is you're a homeowner and you pay  your general contract the general consciousness  

doesn't pay subcontractor doesn't pay a plumber  doesn't pay uh electrician plumber illustration  

just puts a lien on your property and you're like  what the hell are you putting in my property for i  

paid i paid for it and he's like well i didn't  get paid and that's therefore you have to be  

two sorry sorry so that happens a  lot and more than you know which  

is why you got these really good general  contracts don't screw over like that so um  

basically that's how you place a lien has to be  filed with a local county another very common one  

is small claims court you've got a small claims  court which is i think under 3 000 in my county  

you win them you want a summary judgment happens  all the time you sue somebody they don't show up  

judge says find your favor then you get a  judgment against them which you turn into a lien  

again collecting all means is is a whole nother  topic and not easy to do i told you i've had  

no luck with it i've probably gotten 15 or 16  monetary judgments never collected any money but  

in general most of my time i just wanted to  get the tenants out but it's hard to collect  

but if they do have a income assets you can get  a sheriff to collect from them or you can hire  

companies that will find their assets and put and  collect from them but the lien itself is just i  

wonder they really should what's that how do you  define lean i should know how to basic definition  

of lean right as long as you know something you  just can't describe it clearly uh definition

a right to keep possession of property  belonging to another person of the  

dead owed by the person is discharged interesting  

i guess that's a good definition right it's  always because you owe somebody money right  

federal taxes because you're the government money  mortgage because you owe the bet the lender money  

uh mechanics leads because you know the mechanic  money that makes sense so it's a right to keep  

possession of property rights not maybe not the  entire property but a part of that property to  

belonging to another person obviously until a debt  owed by that person is discharged that's beautiful  

that's what it is so that is how what a lien is  and how it gets how you put a lien on a property  

is you need to have a usually judgment for that  amount and then you file it with the county clerk  

but again it's probably a lot easier or more  difficult than other places not so easy here  

the only liens that i've ever placed were the ones  where i had a judgment for the league for the for  

the amount and then i put the lien on the property  with the county clerk that's really how it works  

i hope this was helpful sometimes somehow i  think it may or may not be but whatever if you  

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