All Forum Posts by: Philip Aleman
Philip Aleman has started 3 posts and replied 6 times.
Post: I Need a Subprime Commercial lender
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I have a client who is based in NJ. He is trying to secure funding using Commercial properties he owns. There is a lot of background issues with the deal, but the business has good cashflow and the he has the assets to back it up. Does anyone know of any funders who can work with someone who has had tax issues and numerous judgments and liens over the years?
Post: Need a subprime Commercial lender
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Quote from @Andrew Postell:
@Philip Aleman you might get some responses here but I think the "commercial" forums are better for this type of question. I will say that if there are complex issues it is likely that he will need to work with a very small, local lender to get anything done. That, or more of private, short term financing. That is, depending on what is going on. Again, post in that commercial forum and see what you get there.
Thanks, will do!
Post: Need a subprime Commercial lender
- Posts 6
- Votes 0
I have a client who is based in NJ. He is trying to secure funding using Commercial properties he owns. There is a lot of background issues with the deal, but the business has good cashflow and the he has the assets to back it up. Does anyone know of any funders who can work with someone who has had tax issues and numerous judgments and liens over the years?
Originally posted by @John Mocker:
Philip
I would contact your insurance agent. You company may be able to add the LLC until you can straighten it out. Ideally you would want the Named Insured to match the Title but it would be better to have both the LLC and your name as Named Insureds. If that does not work, they may be able to list the LLC as an Additional Insured. Again, not the best but its better than not having it listed at all.
Right, but if he just transfered the property back from the llc to him wouldnt it make life easier? Either his old policy would be valid again, or he could just get a new policy that the mortgage company could accept? I figured transfering it back would be the easiest way to fix both problems of getting it insured correctly and not triggering the mortgage company. Unless theres something im overlooking.
Originally posted by @Will Fraser:
Hi @Philip Aleman, welcome to the Bigger Pockets forums! This is a sticky situation, but not an uncommon one.
While it is true that all of this COULD trigger the Due on Sale clause, example of that clause being enacted are few and far between (compared to the number of cases in which it could rightfully be invoked). Now, that being said, now is not the time to dance with the devil.
Regarding the COVID-19 complications . . . you do not need a home to be inspected in order to refinance. You will need it to be appraised and that appraiser MAY need to gain access, but you can work creatively to get around this. For example, if you have a Matterport Virtual tour of the property, complete with the floor plan schematics and list of updates you've done and when, then the appraiser can completely do their job and complete the appraisal without entering the occupied property. This doesn't necessarily mean they will, but it is a viable strategy that is being used in other markets.
I would recommend that your friend have an honest "all cards on the table" conversation with his lender and make a game plan. This lender can be a great ally, or a liability to work around and there is no sense having the latter.
But wouldnt transfering the title back reverse the mistake that was made? Though it is an expensive option In theory wouldn't the mortgage company would be happy and the insurance insurance policy be valid again? Or at the very least he could get a new policy that the lender wouldnt reject?
A friend of mine was instructed by his mortgage lender to close on a property in his name to get a better rate. After closing he transferred the property to an LLC owned by himself and 2 partners. Now he is having issues. After further research he realized he could invoke the due on sale clause. The insurance policy is in his name since he closed it in his name. He wants to get the property insured properly, but doing so will trigger the due on sale. So now he is debating transferring it back to his name to avoid potential issues with the mortgage company and to be properly insured again. Is this the right move? He considered refinancing to the LLC, but with the COVID pandemic you can't get an inspector in an occupied property. Any suggestions? Is transfering the property back the right move?