All Forum Posts by: Nate Bartlett
Nate Bartlett has started 5 posts and replied 22 times.
Post: Title company in Illinois refuse to do a double close…
- Lawrenceville, GA
- Posts 22
- Votes 5
I'm curious how much more will a double closing cost you vs. just assigning the contract? With an assignment, you simply receive a check for your assignment fee. On a double clsoe, you are paying for title services, attorney fees on both ab and bc closings, transactional funding fees, etc? Couldn't this be several thousand dollars? I just want to make sure I understand the implications of moving forward with a double close before I do one.
Post: Recording a mortgage on seller finance deal.
- Lawrenceville, GA
- Posts 22
- Votes 5
Quote from @Caroline Gerardo:
What state?
Seller does need their own representation. There are "free" promissory note templates online but I would not print and sign that.
My opinion is you would be "safer" handwriting the terms and conditions, rate and exact balloon due. Simplify your terms.
Sales price $54000 loan amount $44000 I would avoid the extra payment in 6 months as you or he have to agree to re-amortize or not-- and make annual calculations --and file 1099C . He needs a CPA to figure the numbers. How many months is the payment amortized??? In three years you owe about $41000 You need an attached amortization schedule and all the state and federal forms.
What is your exit strategy? You cannot count on refinancing the $41000 as you have road blocks: Loan to value low for an investment loan, loan small, many lenders don't do small loans as they get hit with High Cost rules. You have to plan on selling. Conventional loans are not going to be easier in three years. Your rate of 3% is far far cheaper than market and LTV low so cash flowing with a refinance probably won't fly.
All very good points. Noted.
Edit: state is Illinois
As far as exit strategy, I'm fairly confident in being able to refi. I'm purchasing far under the current value. I also plan to add value by upgrading kitchens and bathrooms, paint, etc.. ARV is conservatively $125k.
It does have a tenant in place and she’s far under market rent. She’s aware than rent will increase by $200 in 30 days from $850 to $1050. I’m going to do a one year lease with her at that new rate. Once her lease is up and the home is vacant, I’ll do the upgrades. This will raise rents from the current $850 to $1800. Cash flow will not be a problem.
Please let me know if you see any holes in my strategy. I’m here to learn.
Post: Recording a mortgage on seller finance deal.
- Lawrenceville, GA
- Posts 22
- Votes 5
Quote from @Tom Gimer:
Quote from @Nate Bartlett:
@Wayne Brooks I don't know either. Honestly, I'm so over using this attorney. She is my attorney and owns the title company and she has a terrible attitude, but I'm too far in the process to switch to someone else.
This is my first off market deal, so I'm just making sure I don't screw it up. Are these forms I can find on Bigger Pockets? (I have a pro account). Or can a title company supply them? I searched online and could only find a promissory note template, but I couldn't figure out how to get it to show that the mortgage was amortized over 30 years, but there's a balloon payment in 36 months.
Possible language
FOR VALUE RECEIVED, I, [Borrower name] (hereinafter known as “Borrower”), promise to pay to the order of [Lender name, address] (hereinafter known as “Lender”) the sum of [X and 00/100 Dollars] ($[]), with interest from the date hereof until paid at the rate of [X percent ([]%)] per annum on the unpaid balance. Said principal and interest is payable as follows: Commencing on [date], and continuing on the [1st] day of each and every month thereafter [principal and interest payments of [$]], with the entire remaining unpaid balance of principal and interest, if not sooner paid, being due and payable in full on or before [maturity date].
Add same maturity date to mortgage.
Monthly payment amount reflects the applicable amortization schedule. Good luck.
Thanks for this!
Post: Recording a mortgage on seller finance deal.
- Lawrenceville, GA
- Posts 22
- Votes 5
Quote from @Jeff Copeland:
@Nate Bartlett - Any real estate attorney licensed in your state can do this for you.
I was going to say any title company will have an attorney who can handle this for you as part of the transaction, but I see your attorney is affiliated with the title co.
The conflict lies in the fact that she is "your attorney", but she'd be preparing mortgage documents that should be designed to protect the seller; she can't (or won't) represent both parties.
It is not something I would DIY.
@Jeff Copeland Thanks. Any ballpark on what an attorney might charge for something like this? I might also reach out to a title company that I used to work for many years back to see if they can do it.
Post: Recording a mortgage on seller finance deal.
- Lawrenceville, GA
- Posts 22
- Votes 5
@Chris Seveney Thank you. It's not owner occupied, but it does come with a tenant in place.
Post: Recording a mortgage on seller finance deal.
- Lawrenceville, GA
- Posts 22
- Votes 5
@Wayne Brooks I don't know either. Honestly, I'm so over using this attorney. She is my attorney and owns the title company and she has a terrible attitude, but I'm too far in the process to switch to someone else.
This is my first off market deal, so I'm just making sure I don't screw it up. Are these forms I can find on Bigger Pockets? (I have a pro account). Or can a title company supply them? I searched online and could only find a promissory note template, but I couldn't figure out how to get it to show that the mortgage was amortized over 30 years, but there's a balloon payment in 36 months.
Post: Recording a mortgage on seller finance deal.
- Lawrenceville, GA
- Posts 22
- Votes 5
I'll keep this short. I'm purchasing a property from a fried in Illinois (Cook County) using seller financing.
Purchase Price: $54k
Down Payment: $10k at closing, $3k in 6 months
Terms: Remaining $41k amortized over 30 years at 3% apr, balloon payment in 36 months.
The sellers attorney has ghosted him. I have no idea why. My attorney will draw up the agreement contract, but she does not want to do handle the mortgage document because she says it's a conflict of interest.
What's the best way for me to do this?
TIA,
Nate
Post: [Calc Review] Help me analyze this deal
- Lawrenceville, GA
- Posts 22
- Votes 5
This would be my first BRRRR deal. Not a DIY deal for me.
There are more photos here:
Post: [Calc Review] Help me analyze this deal
- Lawrenceville, GA
- Posts 22
- Votes 5
*This link comes directly from our calculators, based on information input by the member who posted.
Post: Do all lenders charge origination points?
- Lawrenceville, GA
- Posts 22
- Votes 5
Quote from @Dave Skow:
@Nate Bartlett 1) there are many lenders that allow 15% down for sfh rental purchases 2) you should be able to pay lower loan fees ( points ) - this may require you taking a higher interest rate than the one offered with the 2.2.5 points ...ask you lender for higher rate / lower fee options
Thank you. I will ask for sure.