All Forum Posts by: Andrew Syrios

 tend to agree on portfolio loans. But then why on many of the commercial loans are there pre pay penalties ??? I will have this conversation with my Banker and ask him for instance on a commercial loan I have at about 4% why I cant just pay it off without a big fat pentalty. ?  Right ? 

I suspect Don may know why banks have pre pay penalties on 4% loans today.. One answer might be deals are harder to find so they want to keep thier funds out and working

@Adam Macias I agree that laws change fast per state. 

In Oklahoma, they passed in November 2021 the Predatory Real Estate Wholesaler Prohibition Act & have made multiple updates over the years. The reasoning is to reduce the amount of predatory behavior for the consumer because Oklahoma saw that so many people were either being scammed, taken advantage of, losing property & money unethically or unknowingly without as much educated advice, and more. The act essentially means that in order to do wholesaling & market publicly - you have to be licensed, & if you are not you are doing unlicensed activity that can result in investigations & fines. Many local wholesalers that are unlicensed have hidden under the updates & ultimately do different things now, but most don't "publicly market anymore or they or their spouse have gotten licensed. 

I've had multiple out of state people call me that are spam because they have pulled my number from a public database & have to inform them they shouldn't be doing that - even if I may help them sell, wholesale or buy. They have to be licensed in the state & have had prior business relationships with people & not just purchase a list or do their own public skip tracing research.

I definitely agree with @Alan F. & @Bill B. as governments are just finding more ways to squeeze money from the people to support their agenda & needed programs. Oklahoma City passed a rule August 1st, that they are requiring all roofing matters to go through the permitting process. Whether getting a repair or full replacement you need a permit otherwise you may be subject to fines if you get caught. It is the same reasoning as the wholesaling law, to prevent the amount of unlicensed predatory behavior from the consumer, ultimately raising the standard for roofers. This backfired against them as they don't have enough infrastructure and inspectors to support this. They've even been pulling other trades inspectors in to cover the gaps.

Sure some of the reasoning is legit, then I also think that it is government just trying to make as much money as possible and controlling public business as much as they can to support their paychecks, employment, then government spending habits & programs. @Andrew Syrios & @Nick C., what all else you think?

 I dont think rates play into like your thinking.. so many notes are sold to servicing companies so payoffs are not good for them.

 2006 ish 

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Your comment: "I have never seen a bank call a Due on Sales Clause on a performing loan"

That would be very rare, but Pace Morby in May said he had 10 called this year (2025). If I can find his post, I will note it here.

It's my experience and my opinion that he was doing something wrong. It becomes concerning for those who follow his teaching, in my opinion.

yes twice in the PDX market.. And how it went down Andrew was we got a letter . forwarded to us by the people we bought it from, It was a demand letter IE bank is aware the property changed hands per your Alienation clause the bank will call this note if its not paid in full by this date.. These were both smaller local banks One in Banks Oregon by coincidence and one in PDX.. So we just paid them off in cash. The rub comes if this happens to an investor who is highly leveraged does not have 250k to pay off a mortgage in cash and cant get a loan in time or at all ( as the reason they bought sub to is they cant get loans) Now you have a NOD being filed against the people you bought it from and their credit is trashed.. You can expect a lawyer letter and maybe the seller turns you into the AG etc etc.. Have seen that happen..

You and your family would have no issues with this method (Sub To) as you have the wherewithal to cure at a moments notice. Its the beginner or the dreamer who little to no real money that is going to have some major issues. Or the investor who does not want to lose their down stroke because they cant refi or pay it off or get it sold for enough to cure.. Many of the deals are at max LTV leaving very little room to maneuver..

Our play in the day was foreclosures and ONLY buying these that had at least 30% Equity above what we were in it day one.  And we just used the sub to as a short term option while we stabilized and resold for profit  Or hopefully for profit :) We were not doing these to create a rental portfolio.. Like what it appears is happening now.. And to make matters even worse those that would then resell these on terms or LOs to other non credit worthy buyers and this can lead to huge problems.. I bailed out a group in PDX that did this about 30 times.. And once the lease option tenant stopped paying it created a downward spiral as you have to eject a lease with option to buy client with a full blown foreclosure in Oregon.. This group drank the coolaid from whatever guru was selling this system back in 2002.. I grabbed about 10 of them that had equity the rest of them went into the toilet.. this company got sued and turned into the AG and really goofed them up.. They simply did not know what they did not know and were naive enough to think that all tenants pay :)