All Forum Posts by: Alex Garcia

 Did you ever found out if you could borrow agains it?

 How does one go about calculating the bases without the closing disclosure of this was done via land trust?

Does it matter your LLC is in the title or if the sub2 was done via land trust for depreciation?

How do you calculate the numbers without closing disclosure, e.g. if the freak was done via land trust

Can you loan money in second position?

e.g. to buy a loan subject-to that has 100K in arrears and around 200K in equity after the traction is completed.

could a loan be made in second position?

What's up people! I need of your wisdom. 

I received a call from an elderly relative and they are in the following situation, I want to help them to not get foreclosed, get them some money to downsize and add the home in my portafolio so it stays in the family.

The situation

Austin TX metro area

There were in forbearance since 2019 (COVID)

- Arrears are 104K-

Mortgage has been accelerated

- Mortgage balance 403K (including arrears)

- Reinstaintment balance is arrears + attorney fees (servicer is working on getting us a solid number)

- HOA liens ~15K

- County appraised value 622K

- Rent we could get 3.2K - 3.5K

- Current loan interest rate 3.5%

What are some options here?

also if I were to do sub2 on this it other property, how do you protect yourself before using your own money to catch up payments and reinstate the loan?

how do you protect yourself from the seller deciding not to follow thought after you catch up payments?

@Michael L. What I meant is that it could be more convenient for you to do the rehab while the property is being financed owner finance and the do the refi after the rehab is complete, that way you could do a cash-out refinance and get some of that money back.

Of course the challenge of doing this is to get the money to do the rehab, for that an option could be do use hard money or do a Joint Venture with someone willing to invest the capital for the rehab and get paid back after the cash out refinance.

Of course the numbers would need to square up to make sure the cash out refi gives you enough cash to pay back the HM lender your partner.

Just an idea that crossed my mind while reading about the situation, you'd have to run the numbers to see if it makes sense for your particular situation.

I haven't done this myself but  a couple things do come to mind.

1.- Seller finance properties are usually sold at a premium so you need to consider this, the bank appraisal needs to match or exceed the amount owed on the seller finance principal.
2.- I'm wondering if doing the rehab work first while on seller finance, with HM or JV, would be better as then on your refi you could get some cash out to cover closing costs

I haven't done this myself but I do know some people who are into the seller finance business.
Essentially once they own the property they sell it on seller finance and get monthly cashflow.

You have to be mindful of state and federal laws regarding seller finance but I think it is a good way to get hands off cashflow I do want to try and do this eventually

Hi, I'm an investor and I want to mainly focus on buy and hold, I want to do wholesaling as a way to find properties for myself and sell the ones that are good deals but don't meet my criteria.

The properties i have now I got from the market with convectional loans, as someone who has basic knowledge of how this works what would you recommend as a good learning resource to learn wholesaling, subto and seller finance? For context I'm in Texas