All Forum Posts by: Marcus Griffin
Marcus Griffin has started 4 posts and replied 7 times.
Post: Subto to STR insurance question
- Posts 7
- Votes 0
With a subto property that you want to Airbnb? When switching over insurance,do I provide the lender with a STR/Landlord policy or do I purchase regular home insurance to send to lender and STR/ Landlord policy for my protection. Any guidance on this will be much appreciated.
Quote from @Daniel Tanasa:
Quote from @Marcus Griffin:
I purchased a home sub2 that was a pre foreclose. The bank is offering 2 options for modification. I pay $14k and keep 3.5% interested rate and $1900 payment or no upfront payment put interest go to 7% with $2500 payment. Plan is to cash flow property as airbnb. Please advise?
Hello Marcus,
I assume you already have experience with sub to and you know what you're doing in dealing with the bank for the loan modification. As it was mention before you're walking a thin line when taking a house sub to and then dealing with the bank to do modifications. You want to make sure the seller is willing to get involve all the time they are asked by the bank to do so.
As for the 2 options I think option 1 is a much better option long term. You will recover your money in 23 months, so if you plan to hold the property longer than that, that's the way I will go. Also, in todays landing environment you can't buy a 3.5% interest with only 14 k paid in points, so again, since you have that option with the sub to I will take that all day.
Good luck. Let us know how it goes and the way you ended up going with.
Post: Subto loan modification help
- Posts 7
- Votes 0
Quote from @Account Closed:
Quote from @Marcus Griffin:
I purchased a home sub2 that was a pre foreclose. The bank is offering 2 options for modification. I pay $14k and keep 3.5% interested rate and $1900 payment or no upfront payment put interest go to 7% with $2500 payment. Plan is to cash flow property as airbnb. Please advise?
Does the bank know the property was sold and you are the new owner?
If they know and they are okay with that, that is one thing, if they don't know, that is very different and it requires a far different approach.
Is the seller still involved?
Post: Subto loan modification help
- Posts 7
- Votes 0
I purchased a home sub2 that was a pre foreclose. The bank is offering 2 options for modification. I pay $14k and keep 3.5% interested rate and $1900 payment or no upfront payment put interest go to 7% with $2500 payment. Plan is to cash flow property as airbnb. Please advise?
I purchased a home sub2 that was a pre foreclose. The bank is offering 2 options for modification. I pay $14k and keep 3.5% interested rate and $1900 payment or no upfront payment put interest go to 7% with $2500 payment. Plan is to cash flow property as airbnb. Please advise?
Post: Buy subto sell via wrap question
- Posts 7
- Votes 0
Quote from @Account Closed:
Quote from @Marcus Griffin:
Im closing on my 1st subto deal at $300K(240k mortgage balance, $60k Partial claim balance) Seller interest rate is 3.4% payment is $1900. I'm looking to wrap this to a end buyer for $350k at 9% interest 10% down. Should my wrap loan be for 30 years or should I include a balloon. Rent is $2200 in area. My 1st deal ever. Looking for experienced investor input.
Don't do it in Texas. Yes, yes, I know, it's legal. That isn't even the issue. Do you have $360,000 available to you on short notice if the loan gets called?
You have about 30 days to cure a Due on Sale call.
a. If you do as you suggest you want to do, you no longer own the property. If the loan gets called, you can not force the sale of the property to cover the wrap unless the borrower has violated the terms of the agreement. Then you have to take him through foreclosure, which takes time and money.
b. You no longer own the property, so you can't refinance out of a note call.
c. When taxes increase, when insurance goes up, when other things happen, how do you cover those?
d. You can be sued (and investigated) if you screw things up.
However, if you have available cash on short notice to pay off the underlying note, it isn't a problem. But now, you have defeated the reason for doing the Subject To and have become a lender to someone who probably doesn't qualify for bank financing. So, you could be stuck with that money tied up for the length of the wrap.
So you would recommend finding a long-term tenant..Rents are between $1800-$2200. Thinking I can ask between $2200-$2500 since it's a little more square footage and has a deck and pool.
Post: Buy subto sell via wrap question
- Posts 7
- Votes 0
Im closing on my 1st subto deal at $300K(240k mortgage balance, $60k Partial claim balance) Seller interest rate is 3.4% payment is $1900. I'm looking to wrap this to a end buyer for $350k at 9% interest 10% down. Should my wrap loan be for 30 years or should I include a balloon. Rent is $2200 in area. My 1st deal ever. Looking for experienced investor input.