Lenders that play ball in Texas

[Trevor Smith]

Hey guys,

I am very excited about being a broker for owner finance deals. I have been studying for months. I want to connect investors with people that have bad credit. There will be a wrap-around mortgage. I plan to follow all regulations and be compliant in every law so I don't need the regulation police on this post, please. 

I need help in finding lenders which I can connect with my investors. I want to be able to refer my investors to a group of lenders I have lined up already and they can get pre-approved and we can knock some deals out. I have found one so far but not done a deal with him yet. He requires 55k combined income, 700+ credit score, and 20% down. And he is offering less than 6% interest. He has worked on wrap deals before and I know that his bank will not call the note due. 

But how do I find more lenders that will not call the note due? I can't ask them, or they are obligated to tell me they will call the note due. I cannot tell them what I plan to do, or they will tell me that cannot allow that. So do I have to tell a white lie about how the investors will be holding the properties as rentals? What do I do? Tyvm

[Jay Hinrichs]

@Trevor Smith  if 99.99% of wraps are never called then why are you even worried about it or asking for a lender that would PLAY BALL.. this is perfect way for a lender to lose his or her's license ( which happens often) and you to end up committing loan fraud which happens.

its not the wrap that gets you in trouble.. I have done hundreds of them over the years and started a company in the mid 80S called California wrap  when it was a new instrument  AITD .

where I see folks get in serious trouble with this model.. is when the person you sell to defaults and you have an underlying mortgage obligation in someone's name and revenue erodes to the point you can't pay the underlying.. its really is a house of cards.. and if you have ton's of liquidity its no issue.. but most that try wraps are usually not there with liquidity and see this as a way to get into property with little to no money and no credit and it just leads to some pretty bad situations.

this is just the bad credit little money lease option to purchase model that is prevalent in Texas I guess and other states.. that is a loser all the way around.. its just glorified rental business nothing more nothing less and you make it way more complicated than it needs to be.