All Forum Posts by: Bob Reinhard

Further into the details, as in your line 2

Mortgage Electronic Registration System (MERS) is a privately owned database that the mortgage banking industry created to simply the registration and transfer of mortgages. By tracking mortgage transfers electronically, MERS eliminates the need of a lender to register the transfer with the county recorder every time the loan is sold from one bank to another.

Sometimes MERS itself is designee as the mortgage lender (mortgagee).

While MERS can save time and recording costs, it has drawn criticism for making it difficult to see who actually is the current owner of a mortgage. 

See also, https://www.investopedia.com/terms/m/mortgage-electronic-registration-system-mers.asp

1.
If your HELOC permits, use it to satisfy equity infusion for the lender.

2.
You are trying to buy a property with no skin in the game. How successful do you think you would be obtaining some one else's money in a scenario where they take all of the risk and your risk is insignificant?

A.
What is the actual "as is" value of the property?

B.
If rehab is needed, what is involved and what is the cost? Any answer that involves a phrase similar to "I have not been able to get inside to see it" will not be acceptable.

Much success.

Many auctions are online. Networking there a poor choice in my opinion.
Judicial live auctions, generally the same incestuous exclusionary group IMHO at them, or their minions without anything more than bidding authority.

Much success.
Bob

I would imagine it is as simple as a quitclaim deed from one (you) into the other (LLC). It will not matter to the new borrower what it is lending to, although hard money goes to the legal entities, not personal. If it is a refinance, it's a whole new loan but the new deed must be in place.

Tax implications, well, I cannot speak to that on the transfer. Maybe someone else on the tax question?

@Angie Castro

I won't lend to a wholesaler because what is my lending asset/insurable interest? A soon to be flipped contract?

If it is a real double-close, it's something else ... maybe; but as @Greg Scott said "a good wholesaler should be prepared to buy the property at their wholesale price."

Again, if I count correctly, you are looking for two different lenders for the property at the same time. This will never happen. Neither will subordinate its position to the other.
Perhaps if family/friends join with you, you'll reach an 70-80% down-payment threshold  and then only 1 loan may be needed. Of course, other things beyond the scope of your post come into play too.

I If I certainly appreciate your enthusiasm. If I understand you correctly what you are looking to do is take a loan for the down payment and then another loan for the remainder of the purchase and the rehab. This would essentially have you have 0% as your stake in this transaction.  This has, essentially, a 0% chance of obtaining funding.
Next, it is highly unlikely that any investor will permit a second mortgage nor will any hard money lender permit a first mortgage ahead of it.  Therefore 2 loans on the property are also unrealistic.
As for the mechanics and the number aspects in terms of percentages and amount down payment and adown payment and I'm on purchase money mortgage and I'm out rehab I will leave this for others to offer their expertise.
Much success.
Bob

So, many lenders (Often groups funded by investment companies) have moved from that term to "direct private lending". It's all marketing yo my mind.

Deep down analysis seemingly suggests nothing different for what they offer from what I broker; terms, rates, points. I am also a private direct lender but I reach into my own pocket, pull out the cash, and fund the deal.
I hope my understanding helps.
Bob

 If you If you bid at the auction and win you will not be buying the property from auction.com; only bidding on their platform. It acts as agent for the owner of the property and the owner of the property will transfer title to you through its legal representatives.
Please also be guided accordingly if you will be bidding, because auction.com will bid against you on behalf of its client this is disclosed but most people fail to realize this.
Much success.

You are looking at ground up construction costs including site preparation.
A tough sell, especially with likely miminal or little construction experience.
requires architect plans, wastewater runoff, etc.
Is this a business decision or an emotionally driven one? Examine you motives also.
Much success.
Bob