All Forum Posts by: Nicholas Covington

@Christopher J Lemmon

That is very good information to consider, I guess I look at it from a perspective of caring what actually happens to building itself. Not saying as an investor that you don't care about the building you are renting out, but you are more accepting of the risk than if it were your primary home you and your family are living in. I haven't dealt with too many customers wanting insurance on their investment property since my company was like the others you state and immediately priced out.

One thing I would like to know is which program is allowing you to get an ACV policy for your home? I know conventional loans require that your insurance coverage be in replacement cost terms only, granted i'm more familiar with OOC dwellings. Is this different for investment purposes or are we just finding a private lender that is ok with an ACV policy.

 You forgot to mention any depreciation that might occur as well. Since this is one of the main differences with cash value policies. The bad thing with this is that material costs and home prices normally increase, but the policy coverage will only decrease.  This is only just talking about the dwelling itself, and not any content that might be lost in addition.

@Breton Van Syoc what type of loan are you applying for? I'm assuming it's a conventional loan? I mean at this point it kind of is what it is I guess. How you tried just finding another lender? They all have their own rules and such granted their is still a min requirement but maybe a broker might be able to find you someone that is willing to hold the loan on their books.

It's hard to answer anything when you tell us "they said this, they said that," because if that's what they are saying then that's what you have to go by. Unless you are saying that you tried 10 different lenders and tried contacting a broker, then you haven't exhausted all your options.

Well @Azah Che you are very smart to ask questions, I think this is where a lot of people go wrong. They just don't ask any or don't ask enough. Granted I am sure that I am missing some things as well about your situation, but it sounds like they want you to pay a fee to the wholesaler and then "hope" that they is able to get the place sold. Then you are hoping to get the title of the home after its sold. Any realtor would tell you this is probably a scam that they are running with calling it "owner financed" to make it seem like everything is under the table. 

Please just cease communication with them, I wouldn't even bother to respond back to them. Honestly if I knew everything about it, i would try to find a way to report them.

@Breton Van Syoc 800 and 900 credit score are pretty much the same thing so I didn't pay that any mind. So do you not have the 20% you originally stated, because you could technically "gift" that to your wife up to a certain amount depending on program which would mean you don't have to sell the home first. 

Why is there a 30 day time frame to find a home? Granted I don't know all the details of your situation and don't care to pry into your personally life, I am just wanting to know where you are picking up all this information.

I'm with Natalie on this one, it's not owner financing if they already have a loan they must pay back first. 

To answer your question, no you can not transfer a loan like that, that is called "assuming" the loan and to my knowledge the only program that lets you do that is a VA loan.

So are you saying they want you to put down 12k to hold the deal for the wholesaler to find someone for you? It seems like there is an extra piece to this puzzle that doesn't belong.

Owner financing comes to mind, maybe find a home and see if they are willing to consider that way since you obviously have means to pay for the home.

 Still being on a monthly basis and something that is technically agreed upon, that friend might have some legal right to the home based on state laws. An example would be like common law marriage. Too much grey area and not worth the risk, but to still ultimately answer the question this is still not counted as a gift.

@Brandon Hall Thank you for this clarification, good information to take to the bank.

@Account Closed Hello!

I guess ultimately it comes down to the decent human being test otherwise known as karma. Now I am sure there are plenty that say business is business, and that is very true. But not all business is "good" business.

Do you have grounds based on contract to push execution through court? Yes, yes you do. Will you find someone will to take on your case? Maybe, might be tough. Will the cost be higher than your intended profit from this transaction? Possibly. Would you every want to be placed in this position yourself (granted if and only if  it was an honest mistake)? Heck no. Will there be other great deals that will come your way some other time? Heck yes.

Now some will say karma shwarma... but the world has very funny ways of working. If you didn't know about this problem that was one thing, but actively asking what you should do in this situation I think you know what the "right" thing to do is. You don't want all these pretty numbers to come crashing at your feet if you really were to push for the execution of this deal.

Best of Luck,

Nick