All Forum Posts by: Lawrence Potts

Hello BP members,

I am looking for information regarding owner financing and title transfer when facing a pending balloon payment. My understanding is that one would simply cash-out refinance right before the balloon payment is due and pay off the owner finance balance and then begin making payments toward the refinance note, or establish a HELOC. However, my assumption is that most, if not all, owner financing contracts do not hand over the legal title until AFTER the final payment has been made. Therefore, refinancing or using a HELOC from the property is not an option to pay the balloon payment because there needs to be a legal title that the bank or credit union can use as collateral in the event that money is owed and not paid.

Does this mean that if I were to hypothetically be in a negotiation with a seller and they want to have a balloon payment after 5 years on a 30 year amortization that I would need to ensure that the legal title is transferred to me at the down payment and not until after the final payment? Or would I need to find funding from elsewhere to pay off the balloon? If I had this property as well as other properties in an LLC, could I refinance one of the properties to pay off the balloon?

Please comment and help me understand this or if I am misunderstanding any information. Thank you!

Hello BP,

I've signed a purchase agreement on a 6-unit in Shreveport. My numbers are great, and the owner has offered to carry the down payment at 20%. Can you guys give me any referrals for hard money lenders or any commercial lenders? I'm in a different time zone working full-time and have been having trouble finding a suitable lender. Many won't lend because I am wanting to purchase through an LLC. Thank you!

Hello BP Nation,

I am a new investor in the Albany/Lebanon OR area. I am finalizing my first purchase as a house hack! I'm excited to learn from everyone here. I've been around BP for a few months studying and learning from others but forgot to give my intro. Feel free to PM me at anytime and do not be surprised if you get a question or two from me as well. Best of luck to everyone and their investing endeavors.

Welcome, Brady!

I live in Albany/Lebanon as well, if you ever want to meet up, just message me! Best of luck to you and your endeavors.