All Forum Posts by: Whit Ewen

I concur with the advice about envisioning foreclosure and liens. What is the least value at the worst moment in the deal, relative to how much you've loaned?  If you're new, you'll want to be conservative there.  Hopefully the property is valued at $215k as-is, and you get very good hazard and title insurance where you are specifically insured. I've had attorneys charge $500-750 for docs in Texas. Perhaps term can be 4 months or a bit more after which it defaults to a higher rate.

Robert, I would speak with a number of banks and credit unions. If term length (fixed interest term is what I mean) is one of the more important factors, you may have to find the needle in the haystack.  Banks that keep the loan in their portfolio may be willing to go with a longer term. At this size, that may include credit unions. For larger sizes ($1mm + ) on very good assets, maybe including insurance companies, from what I've heard. 

Thanks @Michael Sato and @Dave Visaya for your warm welcome and encouragement.  I'm looking forward.

I'm new to this community and have a lot of gratitude for it already. I've been investing slowly in real estate for a few years as I was focused on another non real estate related business. In my days, I've invested in other people's equity, been a development partner, a retail leasing broker and now mostly a hard money lender.  I'm interested in learning from others and helping with my knowledge when I can. I'm based in Austin, Texas. I've served on the planning commission here, and I'm also interested in city planning.  I have a growing family, so my spare time is limited, but when I find some I enjoy spending time with friends, self-development, and travel.  Looking forward to getting to sharing ideas and knowledge and getting to know some of you better. 

Amber, excuse my belated reply. You seem to need to have it in an LLC for ownership and distribution reasons. I do know of a Texas attorney that has written an article on this subject. Another attorney recommended his site to me. Not sure how to link here but search for lonestarlandlaw dot com and "due on sale" - one of his quotes in that article is "Historically, mortgage lenders are not usually interested in foreclosing upon a performing loan on merely technical grounds such as transfer of title by the borrower. " Also I had an attorney tell me once if they do have a problem with the transfer, I could always transfer it back. Hope that helps.

I have been going there since the late seventies with family and it has been just growing and growing. It's a beautiful area. I have never investigating owning there. Last time we stayed there in an Airbnb in someone's place near one of the lakes, the owner told me that he bought the lot next door for the price of removing some dangerous trees. The owner was done with all the costs of ownership and just wanted to unload it before spending anymore. I think he bought it for about $3k equivalent. I was surprised that it was that inexpensive. There are some steep grades so the advice herein doesn't surprise me.