All Forum Posts by: William Coet

Thanks for the reply,
Our insurance company said that a landlords policy will not cover relocation, but they will cover loss of income. They said it would require that the tenant have renters insurance that covers their relocation costs. Not sure if this is there are policies where the landlords policy will cover relocation.

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Hello,

The sewer line is not accessible from a basement or crawl space. Removal of floor in apartment is necessary and the project will take a week or so. Will insurance cover the cost of replacement and the cost of relocating tenants to a hotel?

Insurance company will be contacted tomorrow, but trying to get an idea of what to expect.

Thank you

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Hello,

I would like to know if there are solutions to this problem:

Despite the thermostat being set to 68-70 degrees, the tenants will plug in electric space heaters and drive up the electric costs.

This is a 4 unit building and it would be very costly to add additional electric panels and meters.

Thanks!

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Quote from @Account Closed:

Quote from @William Coet:

Quote from @Account Closed:

Quote from @William Coet:

If the bank states that they do not allow their mortgages to be assumed, is there any room to negotiate by offering them a one-time upfront payment or offering to have the loan interest rate to adjust up slightly?

It's Unlikely.
However, you can assume the loan without offical approval. It's called "Subject To".

What they can do, if they learn that you've done so, is call the loan due. They send you a letter giving you 30 to 60 days to pay off the loan. But, there are a lot of positive ways to handle this. However, it's very unlikely they would bother until interest rates get into the 7% - 8% range and they think they can make more interest calling the note due.

Thanks. When a loan is assumed via "subject to" how is the buyer protected from the seller refusing to transfer deed? I'm guessing the deed doesn't transfer which would trigger the bank to be notified...

A Subject To needs to be done correctly using the legal method of doing so.

The Deed of OWNERSHIP transfers, the Deed of TRUST (mortgage) does not transfer.) These are two entirely different things. You now own the property .

You are not on the loan the seller has, and he still is liable to the bank if you don't pay. You are liable to the seller to perform according to the agreement. Yes, the seller actually can sue you if you start missing payments. Yes, you do ruin his credit if you start missing payments. Yes, the bank can start a foreclosure if you start missing payments. Yes, the bank can call the loan due if you start missing payments. Yes, there are solutions if the bank calls the loan due. Do Not Miss Payments. ;-)

Thanks. Does the bank get notified? Are average attorneys familiar with this process? How can I find one that is?

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Quote from @Account Closed:

Quote from @William Coet:

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Hello,
What kind of private lender rates are available these days for small multifamily (4 units or less)?

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Quote from @Ned Carey:

@Riaz Gillani wrote
"They instead have a "Due-On-Sale" clause. If title transfers - via purchase, transfer deed or whatever other mode - the mortgage is required to be paid in full."

I am going to nitpick Riaz comment a bit. Traditionally the clause is called the "Due on Sale" clause as he said. However if you read mortgages they generally do not say the mortgage is due upon the sale of the property. It says the lender has the right to call the loan due. From a practical standpoint, it means the same thing. Virtually no lender will allow it if you ask them.

However this does leave open the window for what I mentioned above, the Subject to strategy. This is a perfectly legal strategy. I do not use it myself. It contains risks and may be perceived as being predatory. You as an investor have to decide whether those risks and hassles are worth it to you.

One problem is there is a lot of bad information about "subject to". Many people recommend essentially misleading lenders and the seller. Some propose dubious strategies that may not hold up if challenged in court. There have been may experts in this field post here. But not everyone who claims to be an expert on BP truly is one.

PS: By no means is this last comment aimed at Riaz.

Thank you Ned,
Can you recommend any experts in the field of subject to purchasing?

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@Jason Wray @Sergey A. Petrov

Thank you both. Aren't there risks that when the ARM adjusts it will be a higher interest rate than today's rates? I'm not familiar with ARMs

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For conventional 30 year fixed rate mortgages is it possible to find a 5% rate anywhere (or anything below 6%) for non-owner occupied 4-units? If so, where?

Looking at a deal and the 6.5% I was quoted today will ruin the budget.

Thank you!

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All Forum Posts by: William Coet

William Coet has started 207 posts and replied 570 times.

Post: Clogged Main Sewer Line, Vacating Four Apartments. Insurance??

Post: Clogged Main Sewer Line, Vacating Four Apartments. Insurance??

Post: Need Help. Paying For Heat/Elec. Tenants Using Space Heaters!

Post: Will a Bank Negotiate a No Mortgage Assumption Policy?

Post: Will a Bank Negotiate a No Mortgage Assumption Policy?

Post: Will a Bank Negotiate a No Mortgage Assumption Policy?

Post: Private lender rates for small multi-family

Post: Assuming a Mortgage as a Solution To Raising Interest Rates

Post: Does 5% APR for Non-Owner Occupied 4-units Exist? If So, Where?

Post: Does 5% APR for Non-Owner Occupied 4-units Exist? If So, Where?