All Forum Posts by: Pete Storseth

You can wrap a seller finance deal with another seller finance sale, essentially being the bank. Very lucrative, but not without risk. Alot of people are afraid of due on sale, but unnecessarily.

The bank wants to be paid. As long as the payment is always made on time, and nobody calls the bank, it works out fine 95% of the time.

@Paul Sassin

Ideally, I would wrap the mortgage. If you're paying the existing loan as it is, you could seller finance to another buyer for a higher monthly payment. Wrapping the mortgage. Look up grant kemp. He's on the bp podcast, youtube, and he is likely the leading expert that's easily accessible online.

@Paul Sassin

Yes and no. Due on sale means what it sounds like. In the event that the house would be sold, the bank would expect the full remaining loan due.

In other words, when a mortgage is written, its expected that if the home is sold, a new loan would pay them out of it. Basically, the loan should remain in the sellers name, and you need to be 100% certain the payments will never fall behind. Subject to existing financing.

You can buy the house subject to, keep the house in the sellers name, get additional insurance, and pay on their behalf.

@Paul Sassin

Key work is clause, not law.

Just make sure everyone knows the risk.

If you don't feel comfortable with it, you shouldn't do it

@Mike S.

Mortgage loan originator. Perhaps only required in tx

@Cory Clay

Dont give up. Deals aren't just sitting on the MLS all the time. They drop outta nowhere and get snatched up day one.

People will tell you you wont find it. Ask yourself, how can I find it?

Many of my first posts were asking how do i find my first deal when I dont have any money? The first replies on BP were, get a better job, in so many words.

Then, after continuing research and posting better questions, others reached out, I got more positive replies. I can get grants for down payment assistance, portfolio loans, hard money, private money loans, etc.

Just keep working at it. Yes, 'gurus" and YouTube videos teach you the basics, but we have to get our feet on the pavement to really understand them.

@Mike S.

When you did this, did you use an rmlo?

@James Wise

Hilarious. I'm listening

to the podcast you were on, you just said you responded prolifically. And I see your name in my notification

@Michael Noto

For sure. For one, if banks dont approve a loan it doesn't mean I wont ever be approved. It just means I have to find another way.

Two, even using hard, private or portfolio money involves meeting their expectations. OPM doesn't mean free money.

@Michael Ablan

What sort of fixed costs?

I dont plan on taking on a project that doesn't cash flow despite the hard money rates.

For refinancing, I would likely get preapproval from a portfolio lender before even purchasing the property.

I should have mentioned that the property I'm planning on would be multi-family, half long term rental, half short term rental. Putting private money into furniture and decor on the STR side, and using private money partner in the deal.