All Forum Posts by: Daniel Wrentz
Daniel Wrentz has started 12 posts and replied 49 times.
Post: Interest only Mortgages
- Real Estate Agent
- Houston, TX
- Posts 54
- Votes 11
@Jeff Shumway that’s great to hear that some don’t require more down. If you lend in Texas could you send me some information on your products? I will be refinancing a rental before long in Houston
Post: Interest only Mortgages
- Real Estate Agent
- Houston, TX
- Posts 54
- Votes 11
Hi all,
Let me know if I’m seeing this right.
Interest only mortgages look attractive, they can boost your cash flow way up for your rental. But essentially it’s just you getting your principal pay down in cash monthly instead of having “dead equity”. Theoretically you can use the extra cash flow to pay down the principal and there would be no difference with a P&I loan.
I can appreciate having my cash now and putting it to work. However, I have seen that lenders ask for a higher down payments with IO. That extra 5-10% is what your “extra cash flow” could be from the get go. So I really don’t see the point in IO mortgages.
Do you see the same?
Thanks!
Daniel
Post: 30 years fixed vs. Interest only
- Real Estate Agent
- Houston, TX
- Posts 54
- Votes 11
@John Nachtigall. Right, that’s exactly why I see also. The tradeoff is cash now or cash later. Theoretically you could use the extra cash flow to pay down the principal and there would be no difference.
However, what kills IO for me is lenders want a larger down payments. That extra 5-10% is what you could use for “cash flow” or for another investment property.
Post: Can you use a deed of trust as collateral?
- Real Estate Agent
- Houston, TX
- Posts 54
- Votes 11
Are there lenders that would use a deed of trust as collateral on a loan?
To give more details, I own a property free and clear, then seller finance it with a deed of trust (Texas). And then to free up my cash I would get a loan that uses said trust deed as collateral.
Post: Owner Financing Refinacing
- Real Estate Agent
- Houston, TX
- Posts 54
- Votes 11
Originally posted by @Drew Poniewaz:
@Daniel Wrentz
Once you transfer the deed to the end buyer you cannot borrow against the property. You would however be able to bring in private money to pay off the original loan and offer the first position lien as collateral for the loan. But more than likely a bank won’t lend in this situation.
I thought of private money also. I might be good to start with that in the first place. Avoid the whole situation.
Post: Owner Financing Refinacing
- Real Estate Agent
- Houston, TX
- Posts 54
- Votes 11
Originally posted by @Dennis Wayne:
Wether it’s recorded or not it’s understood Part of the cfd contract requires you to furnish a feee and clear title when the note is finally paid . They didn’t sign up to have a property with liens on it lol You better have that debt cleared by then is all I can say ! I would not be tying up a land contract as collateral or you risk being sued and losing big league .
Good point, thanks.
Post: Owner Financing Refinacing
- Real Estate Agent
- Houston, TX
- Posts 54
- Votes 11
@Farrukh Madaminov
Good idea, thanks for that.
Post: Owner Financing Refinacing
- Real Estate Agent
- Houston, TX
- Posts 54
- Votes 11
Originally posted by @Farrukh Amini:
If you sell on CFD and don't record the agreement at the county you can refi the loan
Have you done that? I understand that CFDs are extremely regulated (Texas).
Post: Owner Financing Refinacing
- Real Estate Agent
- Houston, TX
- Posts 54
- Votes 11
Hi Creative People,
I am considering this strategy:
-Buying a property via financing
-selling it via owner financing (higher loan and rate)
My question is, can I refinance my original loan if I’ve already sold the property? That is to say, am I stuck with the original loan until my buyer pays me off?
Many thanks!
-Daniel
Post: Due on Sale Clause and LLC
- Real Estate Agent
- Houston, TX
- Posts 54
- Votes 11
Originally posted by @David M.:
If I understand you... You take Title with the LLC and the LLC gives the mortgage, then my layman's understanding is you can effectively transfer ownership of the property by transferring ownership of the LLC. I'm not sure where are you going with a sub-LLC. I get the concept of a wrap around loan, but never done one so not too familiar with any intricacies of your thoughts.
Good luck.
Thanks. That's the main idea, yes.