All Forum Posts by: Ronald Isgate

Go to the Recorder of Deed's Office in the county where the property is located.  They can pull all the current mortgages (of record of course) against the property.  You could also pay a title company to do a full judgment and lien search against the property (couple hundred bucks most likely) - that will show all liens (including taxes, etc.) judgments, etc. that have attached to the property.  

I agree with everything said above.  First and foremost reach out to the lender and see what their requirements are.  Many will not agree to secondary financing to make up the difference - both from a total LVT and debt service - but again, you never know until you call around.

You may be forced to explore the only other options out there:

a) get a partner to contribute money as an equity owner; or

b) find a hard money lender willing to finance, but this is short term with an eye on refinancing in 6 mos or so 

You should speak with your accountant and an attorney in your area before making any decisions.  In my opinion, your attny and CPA are valuable team members, that if utilized can save you substantial sums of money.  Sit down with both and go over your business model/plans.  They should take a global approach in reviewing your business plans to select the best entity for you for each particular venture.

Subject to may be harder than usual given the borrower is deceased - the bank would only have the estate to go after if something went totally south. Banks tend to know when the borrower is deceased (moreso that if they just moved and kept getting checks from a new person on the account). I would absolutely reach out to the lender regardless to see if they would allow you to assume it (or you could take the risk and see if they call the loan of course). Hard Money may be an option - but that all comes down to math - both in how it will impact your return, and the LTV a lender will be comfortable with --- though you are correct that if you are newer in the industry, it may be harder - and you will most likely pay alittle more as well given the lender risk. But if your numbers are solid, that's a solid profit margin there that makes it worth exploring.

I would explore all financing options and also try to wholesale it.  If your lending does not come through you can at least make a profit on the wholesale of it.  I would put all irons in the fire until something hits - better to have options.

Best of luck - sounds like a solid project

It is getting very tight out there banking wise.  I have had several clients hit the same wall you describe.  I work with numerous lenders, both banks and private/hard money - and it is all over the map who is doing what.  Alot have hit the pause button totally and have stopped lending for the time being, while many big banks have tightened the purse strings.  You really have two options - call around to the local banks and Credit unions - they may still be lending.  Your other option is hard money, which if the numbers work could give you the 6 mos you would need for all this to blow over and conventional financing to come back more to the main stream.     Best of Luck

Most of my clients who look for passive investments in real estate tend to go the lending route - i.e. invest their money with a hard money/private lending entity fund.  You get a return on your investment - anywhere in the 6-10% range depending on the fund - and its all backed by RE.  Its truly passive since you invest you money for a set period of time and get your return.  Another option is being a Limited Partner in a venture.  Both options by definition have you performing zero work, but thats a blessing and a curse.  You are essentially investing in an entity you dont have control over (hence truly passive).  

Could not agree more with @Jaysen Medhurst.  The market is tightening - call around to all the local banks and credit unions, you would be surprised how much each varies on what they like to lend on ---- and the rate changes accordingly.  

Best of luck 

I work with alot of lenders - but the best things you can do are: a) Search BP ; and b) ask around to local investors.  Both are tremendous resources for making contacts.  There are alot of bogus lenders out there - so do some due diligence.  I cant tell you how many borrowers i am encountering that lost money by sending a lender a "lock" or "doc prep" fee with the supposed lender just running away with the money.  Search around to get the best rate and terms you can.  You will most likely pay more now since you are newer in the industry - as you get more and more flips under your belt (and if you get a good relationship with a lender) your rate/term will go down in the future.  Pay special attention to Rate, Points, Term and prepayment penalties especially.

Best of luck 

Definitely start first by calling around the local banks and credit unions first.  While alot are not lending, many still are.  Exhaust those options first before you go the hard money route.  Getting a relationship started with a local/regional bank can go a long way in building your portfolio in the future.  I represent alot of hard money lenders, and the first thing I always ask potential borrowers is if they inquired into all the traditional/mainstream options. 

First and foremost absolutely speak with your attorney regarding the terms in your lease regarding what you can and cant do.  That being said, one thing that I am telling all my clients is to open lines of communication with your tenants to educate them on the options that are out there as far as govt assistance - namely the SBA options.  You would be surprised how many people either dont know about them despite it being all over the news, or they dont understand/believe they would qualify for those programs.  Getting tenants to apply for those programs benefits everyone and ensures that they are able to catch up on rent as thats one of the requirements that the money must be spent on.

Best of luck