All Forum Posts by: Mike Morrison

I ran across a post this am on housingwire.com. Appears Green River Capital, a servicer for Freddie Mac, is launching a REO RENTAL PROGRAM for Freddie.
Folks at Zillow don't think this will bode well for RE Investors.
Another example of BAD Economic Policy from HUD.

What makes the contract binding in Texas is the "unrestricted right to terminate the contract" section. This let's the buyer out of the contract for any reason. If there is EM it must be returned by title co. to the buyer. If no EM then no problem.

To make the contract valiid, the Buyer MUST pay the Seller an agreed to amount for a "drop dead" date to terminate the contract.That's where the consideration comes in. Buyer pays the Seller directly for the unrestricted right to terminate the contract within a specified time period.

J.Scott has it.Agents are lazy or inept. Please remember, getting a RE license does not make you profecient. You're not asking too much. Before I pass on a deal to an investor, I've already done all the homework.I want the deal to close and I want a continued relationship with that investor.
I hate to say this but,training in this industry is sorry at best.

Texas allows dual agency.However, I don't view the deal as "arms length".Many disagree with me. My question is how can you "fairly" represent the buyer & seller at the same time? I don't think you can. In many instances you will have knowledge of confidential information from both parties.
i've seen to many of the deals wind up in litigation.

Jason, I can only speak to usury in Texas. 21% is the max. that can be charged. Except for pawn shops which can charge 1% per day.In the early 80% I saw Commerciial Inter. Const. loans at 20% + 3-4 points. The lender, usually a S&L kept a point as an origination fee. We all know what happened.Hope that helps.

Bill thanks for the input.Good point about the LTV.

Guy's, You all have Great points!To Joel, I'm a commercial agent by choice but, you do what you have to do. The owner finance deals are mine as an investor.
I find that folks can't come up with a 1% down payment, much less 10%.
I guess ny point is when I shoulder the risk, regardless the price of property,I should be able to charge a risk premium. Only makes sense, lenders call it debt yield.
I really appreciate this forum. I think it's the best on the web.

Bryan, I'm talking sub prime borrowers and agents. They haven't looked at hard money lately.

Way to go Josh!!!

I ask this question because in the last year,all of my residential sales involve owner financing. I would say that 80% of prospect buyers expect an interest rate of under 6%.
When they find that we are talking north of 7.5%, they balk.
Are any of you finding this?