As far as knowing the steps of what I need to do when buying sub2 is there one in the academy? I have an attorney, RMLO that works with DF compliance and I think I have the insurance agent. 1. Get a purchase agreement with the seller; a. Permission to speak with lender; b. POA; i. Insurance authorization; 2. Open escrow (when you know you’re going to close); 3. If not front funding: Find a wrap buyer; 4. If front funding: go to closing; 5. Insurance cancelation; 6. Replacing the insurance/checking that it was accepted into escrow; 7. Change the mailing address at the bank; 7. What else? Is this all wrong? Do I need insurance if I am going to do a wrap on the property? The person buying on a wrap, don’t I need them to have good insurance or am I keeping the underlying insurance in place? How do we make sure that if something happens to the house that the money doesn’t go to the original owner and he pockets the money? If the new wrap buyer is getting insurance does he use his own insurance to fix whatever issue comes up? If I am selling on a wrap do I need to just put the new buyers name on the insurance? I need clearing up on all this stuff, my head is spinning on how it works.
Curious about doing exact wraps with a balloon (not using Sub2). Can I as an investor do an exact wrap with a seller with a contract for deed and assign the contract off to and end buyer (owner occupant). A sells to B (me) then I assign to C buyer. Now does this fall under the seller selling one house per 12 months and doesn’t need to get the buyer “loan originated” and can do a 5 year balloon or more. I would still get them together with the RLMO to see if they have the ability to pay. Would this make it so I could do as many of these that I want? I could also sell to a investor who wants to buy/hold or fix and flip if it made sense. I guess if I am using a RMLO I can do as many as I want to anyway? Sub2/wrap or CFD/wrap assign it off. *** So can you do as many as you want if you are using an RLMO? So doing a SUb2/wrap you can do as many as you want with an RMLO? (follow up question). ARV 200k; Owes 185k; Term 5 years (gets the seller out of the loan sooner); Monthly $1100 PITI; Interest 4.5%; Third party servicing company taking payments. I say “seller” Ill give you $1000 for example and I turn around and sell it for around 10% down. Say 18.5k, I pay the seller at closing 1k and pocket the 17.5k with a sale price of 203.5k. I understand that this isn’t as good as Sub2 w/ wrap. BUT if the seller wants out sooner and won’t sub 2 maybe they will do this. Also, would this trigger the DOS if I keep the original insurance in place and the new buyer gets his own insurance. So he would pay 1100 plus his own insurance. This might be the case where I don’t want to sub2 the property cause it might be to high of a price. If I do it this way it is all the same for the new buyer, except the term and I can make a chunk of money. I would tell the seller that if a default happens they can call me and I will do what I can to help. Cash for keys etc.
Can you speak about what type of liens can be removed prior to closing on a property? I’ve been reading various posts on people removing (through an attorney/title co) mechanics liens, irs liens, helocs, etc prior to taking a property sub2 and I have no idea how they are doing it.
1. Who would you call to refinance a fix and flip to transition out of hard money loan? They would need to allow owner finance. 2. Would you recommend making an offer on a trec contract or another document? I’ve got 3 meetings this week and don’t even know what docs to use! Lol 3. Should I qualify owner finance buyers with RMLO, so I can later have clean paper and liquidate by flipping the clean note after seasoned, if necessary?
How difficult is it dealing with a 2nd Lien HELOC when doing a Sub2? Is there risk of seller maxing out that credit line or do you take the risk of telling the lender that the home has been bought?
In a course on wholesaling we bought from Bill Bronchick a while back, he mentions setting up the LLC to report as an S corp. I was going to review it before the Q&A tonight and didn’t get a chance. I don’t recall your mentioning anything about which type of LLC to use in your video on the site. Do you have any thoughts on it? Is it different for seller finance, perhaps? Curious.
How often are you doing SUB2/OF to investors who choose to lease the home out?
The power of attorney is done before closing grant? That requires a notary doesn’t it? The POA filled out before closing would allow me to list it on the MLS, that would be the benefit of it. They just are intimidating documents because it requires them to put their SSN on it.
Can we get a CPA in here to discuss the IRS repercussions of paying all cap gains taxes in Year 1 on an Owner Finance sell rather than filing as an installment?
What’s the difference in refi and OF wrap and a Sub 2 to OF Wrap? It’s the same amount of DOS risk
I’d like to see a more detailed video where you fill the owner financed. sub2 contract line by line. I’d also like to see all the documents that we need to fill swhre you able to get permission from the law firm to use their contract. can you add to the ccf mentors group a list of documents we can use
Throughout the videos you mention watching certain videos or downloading certain pages, but I don’t see most of them anywhere. You mention some advanced series videos on some topics, Dodd-Frank videos, or down loads for “trigger terms”, another video on “Should I use a 3rd party servicer”? Where are all these videos and downloads? I can’t find them.