All Forum Posts by: Ryan Taylor

I am curious as to how I can qualify to borrow money to purchase a multi-family property. I have over $100k in student loan debt. I have no credit card debt and no other debt except my student loans. I make roughly $53k/year and have $50k saved up to find a property. I have a 780 credit score as well. It doesn't make sense to pay off my student loans since I will still have a significant amount to pay off. I wanted to house hack but it looks like I won't qualify for an FHA type of mortgage. I was hoping I could possibly use the potential leases toward my income to help me qualify but am unsure as I am still learning.

I was wondering if others have overcome their student loans to still be able to purchase properties? I was considering a hard money loan as well.  Thanks for the help.  

Hi All:

Does anyone know of a cost effective place to buy apppliance for rental units in the Milwaukee, WI area?

By the way: Assumption and Subject To are two entirely different things. Assumption is approaching the lender and qualifying for the loan according to the lender's guidelines and getting lender approval. Subject To is simply taking over the responsilbility of the debt and making the payments, usually without notifying the lender.

@Ryan Taylor: Here is what the Clause actually says:

18. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent,

Lender may require immediate payment in full of all sums secured by this Security Instrument.

However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower.

No there are no audits that I'm aware of. I just threw out an arbitrary number of years where it's unlikely conditions would prompt banks to go searching for loans to call. The shorter the timeframe the less likely they will call the loan.

I always like to tell new sub2 investors the story of the first sub2 deal I ever did. I went with the seller to their bank, sat down with the manager, and told him I was going to take over the payments. We signed the paperwork for all of the loan notifications to be sent to me instead of the seller, I even showed him the contract where I was agreeing to take responsibility for the sellers payments.

Would you like to know what the manager said?

"Doug, you're crazy! Are you absolutely sure you want to take on the responsibility of paying someone else's mortgage?"

No he didn't call the loan due.

@Ryan Taylor

no, not your home owner's insurance, the clause on the mortgage I believe for Title.  Many people forget about that.  If that needs to be updated, then they will know Title has transferred.  Nothing is saying the clause will be executed..

@Ryan Taylor

I don't necessarily think it matters whether the lender retains the loan or not...  If they call the Note, then assuming they can recover their principal now they have non-performing cash...

The County Recorder only record, they don't tell or notify anybody.  There is no requirement to notify.  The public has to go look..

The main thing is updating the insurance clause on the mortgage.  Depending on what you are doing, that might have to be updated and then the servicer will know something has happened.