Investor · Dallas, TX · Member since 2012 · 158 posts · 99 votes
12y
Braden, for some reason my @tag isn't working you, but I hope you see that you are able to do as many owner financed deals to owner occupants as you please. There are a couple of thresholds to be aware of in doing so: 1) once you do 3 or more in a rolling 12 month period you must comply with RESPA, 2) once you do 5 or more in a rolling 12 month period you must comply with the SAFE act.
My recommendation is to work with a state local RMLO and RE attorney in order to make sure you're staying compliant. Dodd-Frank is really not that bad, and to anyone who actually READS the law, things are set out *fairly* black and white for what we need to do in order to comply. I have clients doing 5+ a month who are unlicensed, but I originate the loan and act as the licensed individual for them in order to keep them in compliance.
Real Estate Agent · Winter haven, FL · Member since 2011 · 572 posts · 336 votes
12y
It is just me or is everyone too worked up about the liabilty in owner financing. I always tend to see the cup as half full and always exam the risks in ever situation since in any situations there is a certain amount of risk to be aware of.
The first time I worked my RMLO I attempted to advise her of the terms I negotiated and asked her to keep the monthly low enough to cash flow. Since she is also and investor, note purchaser and servicer she understood what I was doing but made it clear that the terms had to be fair to the seller/lender and could not manipulate terms or under cut the seller. Her balance of ethics and investor knowledge presents good value and minimizes risk.
Instead of trying to be DF/SA pros. surround your self with individuals who are.
That is why an MLO has insurance and E & O insurance, just in case they do something wrong you go after their insurance, and the MLO must check all paperwork to make sure it will pass the DF act. And at this time take everything someone say about the DF act with a grain of salt because it has not been tried and tested.
Joe Gore
i agree. thats why i would use a mlo if i ever had to finance a property for someone.
It is just me or is everyone too worked up about the liabilty in owner financing. I always tend to see the cup as half full and always exam the risks in ever situation since in any situations there is a certain amount of risk to be aware of.
The first time I worked my RMLO I attempted to advise her of the terms I negotiated and asked her to keep the monthly low enough to cash flow. Since she is also and investor, note purchaser and servicer she understood what I was doing but made it clear that the terms had to be fair to the seller/lender and could not manipulate terms or under cut the seller. Her balance of ethics and investor knowledge presents good value and minimizes risk. Instead of trying to be DF/SA pros. surround your self with individuals who are.
It is just me or is everyone too worked up about the liabilty in owner financing. I always tend to see the cup as half full and always exam the risks in ever situation since in any situations there is a certain amount of risk to be aware of.
The first time I worked my RMLO I attempted to advise her of the terms I negotiated and asked her to keep the monthly low enough to cash flow. Since she is also and investor, note purchaser and servicer she understood what I was doing but made it clear that the terms had to be fair to the seller/lender and could not manipulate terms or under cut the seller. Her balance of ethics and investor knowledge presents good value and minimizes risk. Instead of trying to be DF/SA pros. surround your self with individuals who are.
I love this.
Do your marketing, find a problem, offer cash or terms, if terms use your RMLO, simple.
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
12y
Troy, I don't know any MO that just does SF deals, being one is a marketing aspect to sell mortgage products they are working with mortgage bankers, it would talk a book to explain these relationships.
MOs have liabilities for what they do in both directions, to the mortgage bankers, to their client, they can also be liable to other related parties. That's also why they are bonded. :)
It is just me or is everyone too worked up about the liabilty in owner financing. I always tend to see the cup as half full and always exam the risks in ever situation since in any situations there is a certain amount of risk to be aware of.
The first time I worked my RMLO I attempted to advise her of the terms I negotiated and asked her to keep the monthly low enough to cash flow. Since she is also and investor, note purchaser and servicer she understood what I was doing but made it clear that the terms had to be fair to the seller/lender and could not manipulate terms or under cut the seller. Her balance of ethics and investor knowledge presents good value and minimizes risk. Instead of trying to be DF/SA pros. surround your self with individuals who are.
I love this.
Do your marketing, find a problem, offer cash or terms, if terms use your RMLO, simple.
Manny u rock!
my bad, i thought the original poster was strictly talking about selling on terms, but he was speaking from both ends. i like the ability to buy on terms.
Investor · Sherman Oaks, CA · Member since 2008 · 6k+ posts · 3k+ votes
12y
Selling on terms could be a positive in several states. For instance in Ohio, if you sell on land contract, the redemption or repossession is simple if the vendee has less than 20% equity in the property and has had possession less than five years, you can evict in landlord tenant court versus foreclose.
So it depends on the state when selling on terms as to repossessing.
Selling on terms could be a positive in several states. For instance in Ohio, if you sell on land contract, the redemption or repossession is simple if the vendee has less than 20% equity in the property and has had possession less than five years, you can evict in landlord tenant court versus foreclose.
So it depends on the state when selling on terms as to repossessing.
Unless, in any state, your vendee objects and slams an unlawful foreclosure/eviction on you and takes you to court over the matter, depends on what the default might be. The equity amounts vary state by state, they are saying at that level of equity you must use a foreclosure they do not bar you from having to foreclose at a lower equity amount if your buyer objects.
BTW, I'm involved in a heck of a situation on an eviction mess, the tenant now has free legal aid, the plan is, I believe, suing the other tenant, the PM and the landlord, all separately. Just saying, don't think tenants/buyers can't get help. :)
Real Estate Agent · Winter haven, FL · Member since 2011 · 572 posts · 336 votes
12y
I thinks buying on terms/seller financing is single handedly one of the most game change techinics a new investor can learn. I preach it all the time on the wholesale forums to beginners. Learning seller financing and submitting multiple offers(the right way) can enhance your career substantially. Since your on the subject of land contracts, I am curious can anyone recommend some good reading/referrance materials for land contracts. I was ordering some new books off amazon yesterday and came across a few but do not want to buy trash (seminar into types.)
I thinks buying on terms/seller financing is single handedly one of the most game change techinics a new investor can learn. I preach it all the time on the wholesale forums to beginners. Learning seller financing and submitting multiple offers(the right way) can enhance your career substantially. Since your on the subject of land contracts, I am curious can anyone recommend some good reading/referrance materials for land contracts. I was ordering some new books off amazon yesterday and came across a few but do not want to buy trash (seminar into types.)
Manny, what makes Land Contracts or Contracts for Deed an important part of your arsenal or desire to be a part of your arsenal?
Real Estate Agent · Winter haven, FL · Member since 2011 · 572 posts · 336 votes
12y
@Dion DePaoli not land contracts but seller finance. For me personally it was eye opener to go to a weekend REIA breakfast as an invited guess to a local coach. And listean to successful people, very successful people talk about buying on terms and cash flow. After this meet up I got a very motivated lead and made to offers. Like always the wholesale cash offer was rejected and to my suprise the seller fi was accepted.
For me it is much easier physcological to make an offer on terms confidently. It is easier to tell someone you can pay them a lump some now and the rest over time instead of trying to convince some one there hard earned house should be sold for pennies on the dollar.
I still make offers in different structures wholesale being one of them But I am in a rental market and trying to graduate into the mid class market. And lock a deal up on terms and assigning the rights has worked for me because my list consist of buy and hold investors how prefer not to go through a back.