1. If you are doing a Sub2 at 150k and you need to give them 25k with a 2nd, what are you using as a second? Are you doing a 2nd note and mortgage? What exactly are you using to create the 2nd? 2. Following up with that. What if the seller needs a large chunk of cash at closing (they need it for a DP on their next house)? Could you use private money to come in and make that DP? For example 25k for 5 years, also, you need to give 25k more to the seller for their equity, total of 200k. Would or could ever do something like that? Hope that makes sense. Maybe on a Free and clear it might be better because the DP money could be put in 1st position.
Could you provide an example of how you do deal splits on your JV deals?
When you originate an owner finance transaction, one of the selling points is that they can save on their taxes by being a homeowner. However, You can claim mortgage interest it won’t amount to a change in the AGI (adjusted gross income) because the standard deduction is $18K for heads of household, and $24K for married couples. Are there any other ways besides mortgage interest to increase deductions for a new homeowner?
In the past, you have said that you MLS most all your Owner Finance(OF) deals looking for a wrap buyer. What do you put in the MLS fields to qualify the house so that Realtors bring you only OF Buyers instead of Bank Pre-qualified Buyers? Or, do you turn your Bank Pre-qualified Buyers into OF Wrap Buyers? Do you accept Discount Offers? Do you advertise in MLS a discount price for all cash offers AND an Owner Finance price?
I have a question regarding how to go about finding someone to originate and service. In sub2 the owner keeps the mortgage in their name, but the title goes to the investor; vice Lease Options, the title and mortgage remains in the owners name is my understanding. Are there certain scenarios where one is preferred over another? From owner’s perspective is one more preferred? Can you provide both as options for the seller? If so, how would that look. In which case would you offer more money over the other?
I am not sure if this has ever been asked but IF a due on sale clause ever gets called how long do they give you to pay off the remaining balance? Also I remember you saying before that you tell the seller that they have protection with the deed of trust. I told the seller this before and they asked how would they ever know if i wasn’t making the payment to the existing mortgage?
Can I create a second promissory note for a OF buyer if they don’t have the full down payment or the closing costs? And can I make that second promissory note payable over 3-4 years by having them pay it back with their tax refund?
Do you ever do Options? Not lease options
Took my home off the market, considering getting my first wrap done and some experience, using my own home. Any thoughts? (afraid- don’t know Spanish speaking R-agents who know about wraps)