Investor · San Antonio, TX · Member since 2016 · 242 posts · 126 votes
Hey everyone!
I know that your time is valuable so I'll get right to the point.
I need your advice!
I'm putting the finishing touches on a new course called "Stop Flipping, Stop Renting: Owner Finance your way to Financial Freedom", and want to make sure that I don't' leave anything out.
So, will you let me know your biggest question(s) that you have about Owner Financing or Creating Real Estate Notes? It could be anything...even if you think it's silly.
All you have to do is post your questions in the comments below.
In exchange for your advice, if you also message me your address, we'll send you a free copy of our book by the same name (available for first 25).
Ok, here's the easy form:
What is your #1 question about Owner Financing or Creating Real Estate Notes?
Real Estate Broker · Northwest Indiana, IN · Member since 2011 · 2k+ posts · 2k+ votes
9y
To address the above ideas:
1. Quickest way to have borrower refinance and lender's who refiancne A loan has a maturity date that is the only way to attempt to control the timing of a borrower needing to refinance. A mortgagee can not otherwise force a borrower to refinance.
2. There is more to a conventional refinance than simply payment history. Foreclosure, bankruptcy and other credit will affect the borrower's ability to qualify for other credit, which would probably need to be better than that to which they have in order to incentivise a refinance.
It would be wise to understand who you extend credit to and their ability to qualify for credit in the future if you plan on being taken out by a refinance event. Additionally, you are required to abide by Ability To Repay rule.
3. The clause is Due on Sale. Not Due on Call. Get your documents from an attorney in the state the subject property is located.
4. If the trust owns the real property, yes. if not, then the trust is acting as a lender.
It is illegal to attempt to circumvent the borrower's right of redemption and foreclosure process when lending.
Euless, TX · Member since 2017 · 20 posts · 8 votes
9y
What is quickest/easiest way to have borrower refinance a loan so you could get all of your money out if need/want to? Who are the lenders that will refi to the credit-challenged that are showing good payment history on the note? How long would that typical history have to be? 3, 6, 9 months or longer? Thanks!
Real Estate Investor · Pleasanton, TX · Member since 2016 · 8 posts · 3 votes
9y
Where can I get owner finance document?is grantor trust best way to avoid due-on- call?is that easy to sell my owner financed note? how much should I expect?
Real Estate Investor · Pleasanton, TX · Member since 2016 · 8 posts · 3 votes
9y
Could we do owner finance through a trust? Could we sign an interested to the buyer through a long term until they pay off the whole loan? If they fair on payment, we could easy to eviction without a foreclosure.
Real Estate Broker · Northwest Indiana, IN · Member since 2011 · 2k+ posts · 2k+ votes
9y
To address the above ideas:
1. Quickest way to have borrower refinance and lender's who refiancne A loan has a maturity date that is the only way to attempt to control the timing of a borrower needing to refinance. A mortgagee can not otherwise force a borrower to refinance.
2. There is more to a conventional refinance than simply payment history. Foreclosure, bankruptcy and other credit will affect the borrower's ability to qualify for other credit, which would probably need to be better than that to which they have in order to incentivise a refinance.
It would be wise to understand who you extend credit to and their ability to qualify for credit in the future if you plan on being taken out by a refinance event. Additionally, you are required to abide by Ability To Repay rule.
3. The clause is Due on Sale. Not Due on Call. Get your documents from an attorney in the state the subject property is located.
4. If the trust owns the real property, yes. if not, then the trust is acting as a lender.
It is illegal to attempt to circumvent the borrower's right of redemption and foreclosure process when lending.
Investor · San Antonio, TX · Member since 2016 · 242 posts · 126 votes
9y
Shantel James:
The majority of people that buy houses through owner financing don't have the good credit to get loans through banks. What we do to get our capital out is either sell the note to an investor or leverage through a bank.
Faye Lyu:
Typically an attorney or 3rd party loan originator will create all the documents you need. "Due on Sale Clause" will only come into play if you try and assume a note from a seller. We focus on creating new notes.
Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
9y
What is the typical % of contract (mortgage) balance an investor will buy at if we are selling a stream of income? For example- I have a 1st trust deed on a single-family with a balance of $125k, 70% LTV, 10 yrs good payment history at 8% fixed.
Would someone buy this at 70%, 80%, 90%+ of the $125k? Mostly looking for an 'in general' response because I have no idea. Thank you!
We sell all of our notes at face value. We've done this by creating our own pool of note buyers.
Thanks, Collin. In you experience could you speak to the average Joe seller like me? What % is typical for a seasoned and juicy one at 8%? A new one at 5%? Assume 1st trust deed at 75% LTV.
Investor · San Antonio, TX · Member since 2016 · 242 posts · 126 votes
9y
In the open market you can expect any where from 60-75% typically. Especially if you're dealing with a broker. We try to teach in our course to deal directly with the note buyer and not a broker. Which will get you in the 80-100% range.
Investor · Austin, TX · Member since 2015 · 4 posts · 1 vote
7y
What is the best way to market your properties to your end buyer? Zillow? Craigslist? FB Marketplace? How do you find the buyers that need the product you are selling?
Investor · San Antonio, TX · Member since 2016 · 242 posts · 126 votes
7y
We do Craigslist, Facebook marketplace, and good ol' fashioned bandit signs mainly. That keeps us quite busy here in San Antonio. We don't' really use the bigger sites like Zillow and such as our typical buyers wouldn't be found there.
We've also toyed with the idea of advertising in rags that get distrubuted in our neighborhoods but haven't pursued that yet.