All Forum Posts by: Gina Francis

Quote from @Jerel Ehlert:

To clarify, you will be assuming the 1st lien loan already in place, and the seller will carry back a 2nd lien loan, correct?

Note and deed of trust (assuming in Texas), with reference to 1st lien deed of trust.  Pretty straight forward. Myself or a fee attorney closing office could get it done in Texas.

Hi Jerel, Little delay on my end as I was waiting to speak with the lender. Here's what I learned: because the existing loan is an FHA loan, we can only assume the loan if it's our primary residence which knocks us out of this assumable loan piece. We suspected this might be the case but were hoping we were wrong. We're exploring other options but not sure it will make a lot of sense based on current rates. However, if we are able to come up with another creative financing option will reach out to learn more about your services. Appreciate you reaching out!

Quote from @Chris Seveney:

@Gina Francis

Yes you will need an attorney to draft the note, mortgage/deed of trust

Thanks Chris!  This is very helpful.

Quote from @Eliott Elias:

Use an attorney owned title company to facilitate this transaction. I use Ceshker Title in Austin to draft my notes.

Very helpful Elliott!  Thank you!  How much should we expect to pay for this service....just a ballpark? 

Quote from @Doug Spence:

Following! I submitted a seller finance offer last week. I believe the seller typically hires an attorney to draft up the agreement and it gets recorded with the title company. 

But if you're assuming the loan, thats going to be with the lender I believe. 

Hi Doug!  Appreciate your feedback! We're dealing with two unique variables here: 1) assumable loan for the balance due on original home loan and 2) owner financing for the monies owed to him for agreed upon purchase price (in this case about $108K). I anticipate that we'll start the process in assuming the loan in the coming week. It's part 2 that I am not as clear on, does the promissory note/or DOT get filed with the title company, or is that an independent transaction between myself and the seller? 

Quote from @Matt Devincenzo:

The actual loan docs are pretty basic...promissory note and a mortgage or DOT depending on State. Obviously the terms of the loan itself can be more or less complicated depending on what the seller agrees to, but the actual docs for the loan are the same.

Thanks Matt! I presume the lender is hands-off with the DOT or promissory note as this is outside the scope of their purview. Would it be appropriate for us to have the DOT or promissory note drawn up by an attorney in the respective housing market and present to the seller? 

Bigger Pockets Family! 

We we have a dear friend who is in a financial pickle and has offered to sell us his out of state 3 bed, 2 bath home for $290K (currently listed for $300K). Loan is assumable ($182K balance at 3.75%) and he'll carry the $108K balance at 5.5% with a 5-7year balloon.  Down payment is 20% on the 108K. 

We're looking at purchasing this as a family investment with my sons. 

We'll work directly with the lender to transfer the loan but are unclear on what documentation is needed to protect both parties regarding the terms of the "owner carry." I'm assuming we need to hire an attorney to draft up an agreement, but don't want to go into this blind. 

Grateful for any recommendations.

Thank you Doug! I appreciate you taking the time to review this and for the advice. I will be sure to let you know how we proceed.  Thanks, again! 

I appreciate your feedback Marc!  Thank you!  If I don't jump on it....I'll be sure to share your info with the seller.

Bigger Pockets Family! 

We have a unique opportunity to buy a an out of state home in Ft. Worth, TX but because it is out of state and involves some creative financing, I'm hesitant. The home belongs to a close friend of the family who is in a financial pickle and needs to sell the house asap. This 3 bed, 2 bath home 1600 sf, was originally listed for $310K and price was just dropped to $300K this week. The owner is offering to sell us the home for $285-290K with the following terms:  1) Loan is assumable at 3.75% with a $182K balance owed, we would take over the title/loan 2)  $20K down 3) owner would finance the $83-$88K balance @ 5.5% for 5-7 years with a balloon due at the end of the term.

The house currently rents for $2100, PITI is $1762. Compared to what I am used to in Denver, property taxes are quite high: $575/month. Based on the terms at hand, would you jump on this or run? Any suggestions or recommendations would be greatly appreciated. Thanks in advance!

Gina

Hello fellow investors!

We are looking for an accountant who specializes in both STR and LTR in the Denver, CO area. Ideally, we would love someone with both a legal and accounting background. We are exploring the possibility of working with the Mark Kohler's team (KKOS Lawyers) since they also specialize in accounting. But prefer to work with someone locally if possible. Would be most grateful for any recommendations! Thank you!