All Forum Posts by: Brian Gibbons

http://www.consumerfinance.gov/newsroom/agencies-issue-final-rule-to-exempt-subset-of-higher-priced-mortgage-loans-from-appraisal-requirements/

This give me a headache!

Happy New Year!

Newsroom CFPB http://www.consumerfinance.gov/newsroom/

No equity deals are, for acquisition,

1. sub2,
2. lease option assignments, or
3. short sales.

There is little else to think about.

To properly analyze, you need to know everything about the property.

This includes the existing financing details. Fixed is usually must better than ARMs; think about the buyer over 2 - 5 years: is that good for them, the ARM? Keeping a fixed rate payment is always better.

When your PITI is HIGHER THAN your rent, be cautious. You could get the tenant buyer to pay higher than market rent, but it could be structured as rent and an extra option payment.

Ex)

Rent is $1000, PITI is $1200.

Have the tenant buyer pay option to move in, and market rent, plus an option payment of $200, the difference, that is part of the option.

@Bill Gulley may want to comment.

"Sub2 then renting long term" is probably not a good idea, you have to be willing to refi or sell quickly. There is no equity here.

Short Sales take 6 - 12 months and are are not certain.

I hope this helps.

Brian

http://www.mhmarketingsalesmanagement.com/blogs/daily-business-news/new-final-rule-exempts-manufactured-homes/

Happy New Year!

Hi @Michael Otranto ,

Are you trying to find sellers or buyers?

Lease Options or Wholesaling?

Sellers on Lease Option -

1. Listed with Agent - Web Leads

2. Expireds - Web Leads

3. FSBOs - Web Leads

4. Landlords - Web leads

5. No Equity Deals (2006 - 2008 purchase) in Nice Neighborhoods - ListSource.com

----------------

Frequency - You need to mail 5 - 7 times over 3 - 6 months.

@Michael Quarles might want to add here.

as @Steve Babiak said, it's about the local customs of getting a bad tenant buyer out, NC has issues too.

Use a lease from ur Realtor Assoc and an addendum , and a separate option.

To avoid transactional funding, try a reverse assignment

Say you have a deal:

A to B - purchase price $100K

B to C purchase price $130K

Your profit is $30K

Assign your interest, Use a mortgage - DOT and a note for your $30K profit.

Get paid from closing, use escrow instructions, use a letter of intent and get it signed from the seller and new buyer to be transparent.

@Page Huyette if it costs you $80K and worst case is $110K on re sale, thats $30K net before holding costs and costs to sell (10% of sales price)?

I like to use Credit - Finance Partners, like busy doctors that have $100K liquid or more.

But this deal is too thin, as you are lucky to net $15K, and split that.

$750 a month fixed rate?

Is it rent ready or does it need work?

I like the spread of rent vs mortgage, look at taxes and insurance and possible repairs.

I would consider a Sandwich Lease Option.

Rent for Owner - $750 per month for 36 months, option to buy at $84K, buyer pays closing costs.

Rent for Tenant Buyer - $1200 per month for 12 months, ability to extend lease for 12 months, option to buy at $99K, buyer pays closing costs.

Warning - You need to have cash reserves in case you need to pay to the seller and the tenant buyer does not pay you.

For thin speads of rent vs PITI, stay with Lease Option Assignments.

@John Jackson might want to add to this.

Getting a commercial sales license if your are doing alot of MLOs might be prudent.

yes control w a master lease plus an option, you need to find a problem that has a motivated seller.