All Forum Posts by: William Coet

Quote from @Riaz Gillani:

Some of the answers above seem to be a little coy ... so in most circumstances - NO. Certainly not conventional loans. Some government issued loans may be. And the current owner of record could read his loan docs or ask their lender to be 100% sure. But conventional or private lenders don't allow payments to transfer from person to another with the exception of some unique circumstances (Death, Divorce, transferring to a family member or when a Living Trust is at large). It doesn't really benefit them (unless the current borrower is at risk of being default).

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. 

Thank you.  What if the title doesn't transfer and the seller keeps the mortgage in their name and the buyer simply makes payments to the seller until the mortgage is paid off?  Once paid off the title could transfer.  

Hello,
Is it common on properties over 500k for the listing agent and brokerage to give up the percentage of commission that would normally go to the buyers agent if the buyer uses the listing agent?  

Thank you

Hello,

It seems that the cost of borrowing money is going up.  There are points on mortgages for investment properties (one bank quoted 4 points today) + appraisals + loan origination fees+minimum 20-25% down payment.

Is there a more cost effective way than a conventional mortgage on the property being purchased to use equity in existing rentals to buy more rentals?

For example if there a several rentals that are unencumbered by a mortgage, is there a more cost effective way to take equity out of them to fund new purchases?

Thank you

Hello,

For a mortgage with a regional bank, can it be assumed by the buyer so that they can keep the lower interest rate (4.1%) instead of having to make a new mortgage at 6.5%?

Thank you

@chris @Chris Seveneyundefined

Do you have any thoughts on the chart posted?

Quote from @Chris Seveney:

@William Coet

Love to see the chart as I cannot find 6 different decade long spells of low to normal returns in 100 years

Quote from @Chris Seveney:

@William Coet

Owner financing is handy if the property will not qualify for fha / conventional financing. The seller would most likely own the home outright and want to defer some tax gains

Most owners when they sell want out of the property. Typically on owner finance the rate is significantly higher. The comment that $400k more is not apples to apples as if the seller took cash now and invested in stocks with a historical 8% return they would have significantly more money in the future.

Also owners will like to sell close to asking price on seller financed homes as well

Thanks for the reply. The stock market has experienced 6 different decade-long periods of low or no returns in the past 100 years. I suppose it comes down to individual tolerances.  

I'm trying to brush up on what the benefits of owner financing are for a seller so I can list them for him.  I plan to make an offer, but it will be for quite a bit less than asking price.  It's the only way the property will work with the improvements it needs. 

If seller holds the mortgage at 6% he can earn almost 400k more than asking price over a 30 year amortization period. (He may not want such a long payback period so I'm interested in hearing solutions to this issue as well). 

In addition to earning the interest on a loan secured by the real estate, what are some benefits for him in holding the mortgage?

Any ideas would be appreciated. 

Thank you

Hello,

This is a small city where there is a lot of new construction of new apartments.  The new apartments are all filling up quickly at the highest rates in the area.  They are attracting higher quality tenants. 

The majority of other apartments in the town are older housing stock that has been converted to apartments.  The rates are lower.  None-the-less I am wondering if the quality tenants were previously in these apartments and now are going to the new construction.  This would mean less desirable tenants for the older stock.

Any insight into what effect new apartment construction can have on the tenant base for these older apartments and how to compete/ stay relevant would be appreciated.

Thank you!

Quote from @Nathan Gesner:

Quote from @William Coet:

I believe you've already asked this another thread. Work can't always be done in 14 days, so I believe your State allows you to send an estimated list of charges, then you have additional time to complete the work and send a final list of deductions.

Any idea if the 14 days is buto return deposit is business days or calendar days?