All Forum Posts by: Tom S.

@Denis Churchill  Why wouldn't you just sell it outright and get the loan paid off and out of your name?  It still seems to be a sellers market in many locations, and probably will continue to be with the drop in mortgage rates lately.

@Lex Layton  Similar to Peter's experience above, for my first investment property the partner put up the downpayment, and I got the loan in my name.  This way we each had something into the deal.  We split everything 50/50 after that, and it worked well for us.

@Tommy Kerwick Jr.  Just adding, in VT is goes by the town.  Some smaller towns have minimal zoning.  As mentioned above, check with your town as a starting point.

That said, the septic permit will be the challenge. Even if you have plenty of land for ADU's and septic, if the best location for septic on your property is adjacent to the neighbors, and they have a well there already, you wouldn't be able to build there.

@Mark F.  What's the purpose of doing all this?  In the end the mortgage will still be in your name, and you're ultimately still responsible for the payments since there's a personal guarantee.  

Regardless of a corporation making the mortgage payments, the end of year mortgage interest statement would still be in your name as well.

@Jacob Stevenson  Definitely agree with the above post, make sure you get the title for any creative finance deal.  That said, it looks like you'd have to bring a huge downpayment to the table for this deal.

Why not just purchase with conventional financing?

@Minh Vu  You need to look at the mortgages to see the exact terms.

I'm assuming the value of this property is far greater than $175k, which is why you're pursuing this?  Can you post the numbers?

@Dan N.  I believe most house insurance policies have a standard minimum anyway, typically $300k is the standard that comes with a fire insurance policy.  But to the excellent point above, for liability you should definitely go higher and it's usually not too much more expensive.

@Joe C. There's a fairly active REIA in Burlington you should try to look up.

@Timothy Cooper  One of my first deals like that I did, I had an equity partner put up the downpayment, and I got the loan in my name, and then we split everything 50/50 after that.  That way we each had something into the deal.

That worked for us, so something to consider when seeking partners.  Hope that helps and good luck!

@Adaze Foltz  Depends too if you're flipping and seeking money for short term projects, or long term rentals.

- For the reasons posted above, for short term, PML is definitely great.  

- For long term rentals, traditional financing is my Go To for the long term buy and hold.   During the pandemic, I refinanced some of my rentals into 3% 30 year terms.  You'll almost always get the best rates and longest terms with conventional financing.