All Forum Posts by: Tyler Mills

Is there anyone who has experience with the rules regarding Loan Assumptions? I was told by Bank of America that all loan assumptions have to be occupied by an owner occupant within 12 months. Would this mean that if I sold the house before the 12 months I would not be required to live in it? I have a deal that would work if I could assume the loan and lease option it to a buyer already in hand. Any thoughts appreciated.

What type of loan is it? Conventional or FHA/VA?

0 Votes

Originally posted by @Richard Huizar:

Actually I meant to put a BP link on my website? Is there a link that I can get from BP to add to my website?

Here is the BP page on how to post a link to them on your website using text or images. Hope this helps!

http://www.biggerpockets.com/link-to-us.html

1 Vote

Originally posted by @Johann Jells:

@Tyler Mills:

Sorry Tyler, but you're mistaken about the plastic, those parts are metal, as I've said, I've disassembled one myself, not just looked at pictures. This video shows the construction better https://www.youtube.com/watch?v=aQjXl78DdUA.

This does not mean the demonstrated vulnerability is less, just that they're not stupid enough to make it from plastic.

https://www.youtube.com/watch?v=7LHeY35zxxM

Mentions plastic interior, but also in the description it states that in more recent releases of the SmartKey series they have upgraded a lot of the plastic to metal parts. So good to know they already correct one glaring oversight of this series

0 Votes

Originally posted by @Account Closed:

@Tyler Mills and @Bryce Y. I don't see DOS as the issue in the wrap letters Dion posted. DOS is the least of my concerns. It's about sanctions from a federal agency. Additionally, I was interested to learn that when HUD pays out a claim to a lender on an FHA loan, there is an investigator and an investigation......just like any other type of insurance claim. Lots of sub2 buyers out there think that no harm can come to them if they let the property go to foreclosure. Putting aside their failure to perform per their agreement with the seller, they reason that the loan isn't in their name so there will be no consequences. The case in the letter above suggests otherwise.

Both letters mention the sanction imposed though, you may be barred from future VA/FHA loans for at minimum a year. Personally I think this is less of a detriment than having your note called and foreclosure. There are many other finance options out there than FHA/VA, so if you get barred you go for conventional financing for the period. Though this would not be the ideal situation, the real threat is the the property as an individual, especially if you don't have the cash reserve to pay the loan in full when it comes called.

And in a sub2 situation, it is pretty easy for the seller to turn around and rat the person out to HUD if it really comes down to it, and show them the sub2 contract. The belief that there could be no consequences because your name isn't on the note is a pretty uneducated belief to have, even without seeing the above letters.

0 Votes

Originally posted by @Bryce Y.:

The way I read it is this applies to agents and title companies, and not so much the individual investor. That's why I asked what would have happened if this was discovered when both loans were still performing. Would HUD have the ability to force the bank to call the note due? No legal advice.

Just dug into this a little more for you, looks like as per the HUD handbook a wrap-around is acceptable BUT it requires a HUD full review for approval. So from the sound of it if you go the proper channel and get HUD approval on the wrap-around they would not be able to call the note due, but if you do it without their knowing they would. Here is the link to the Handbook section, be aware though its a .doc format so it may try to download.

http://portal.hud.gov/hudportal/documents/huddoc?i...

1 Vote

Originally posted by @Johann Jells:

Originally posted by @Tyler Mills:

Actually, they're metal, I've disassembled one myself to reset it without a key. But it depends on one tiny metal gear tooth per tumbler, so unless the gears are made of something insanely hard but not brittle, they can be broken with the force method.

So everyone has heard the same stories and seen the same videos as me, but no one has actually heard of a burglar forcing one?

Here are pictures of the internals of the KwikSet Smart Key, you can see the majority of the cylinder is plastic:

http://www.lockwiki.com/index.php/Kwikset_Smart_Ke...

That being said, if you really are looking for a lock that is harder to force entry on, look at Schlage Primus, or other similar keys that actually have two sets of pins. These again are by no means "thief proof" but they are going to be harder to pick and can't be bumped.

0 Votes

Originally posted by @Johann Jells:

There's lots of pages out there about how easy it is to defeat a smartkey lock, but I can't find any anecdotes of anyone actually getting robbed by a thief doing so. They're a very attractive idea, and and I have a few, but I'm hesitant to go all in. And it's not clear they're any more vulnerable than regular low end locksets which can be picked and bumped, unlike Smartkeys.

Does anyone have any actual info related to this?

Watch this video:

https://www.youtube.com/watch?v=7LHeY35zxxM

Should tell you all you need to know about how terrible these locks are currently. The internals are mostly plastic, allowing them to easily be broken with a specialized tool, or even a screw driver, and show no external signs of forced entry. Takes about 15 seconds to break a kwikset lock, and the bigger issue is, once broken they can re-lock the door and you have no idea.

0 Votes

Originally posted by @Bryce Y.:

Interesting. What do you think would have happened if they discovered this while the wrap loan was still performing?

How difficult is it nowadays to assume an FHA loan?

It is no more difficult than a regular closing to assume an FHA loan. All you need to do is qualify, same as you would to get a new FHA loan. Once qualified you fill out some paperwork, take over the mortgage, and release the seller from liability. Only issue for investors is the owner-occupancy requirement, which is likely a motivation for wrapping or sub2

1 Vote

Originally posted by @Beau Blinder:

Originally posted by @Abou C.:

Yea I washing machines and parking is a must and maybe a mini vending machine ha. But you mean by cable?. As for wifi do you mean offer it as "free" or just have wifi only tenants can access?

If you are planning on offering internet access, beware that you, as the provider, are responsible for what you tenants do on your wifi. If they download copyrighted material, illegal pornography, or engage in other shady online behavior, you can be held liable, I believe.

You can mitigate this risk by installing monitoring software.

On top of this, any time the WiFi goes down or there are any other internet issues you are going to be the one getting a phone call, especially if the modem and router are not in a commonly accessible area. I would almost steer clear of offering internet unless you are getting a great deal on it, it is going to be more of a head ache than a benefit.

1 Vote

Originally posted by @Ryan Ahlgrim:

I always enjoy hearing the different ways investors structure their direct mail campaigns. I'm planning on starting one in a few months but have some questions.

Would it be better to put a phone number on the mailer for the seller to call me directly? Or should I give them a website address that would take the seller to a questionnaire where they can fill out information about the property they'd like to sell?

I assume the phone number would give me a better chance of getting my foot in the door and negotiating. But the questionnaire would help me quickly sift through deals and only focus on ones with potential.

Thoughts?

Both, you want an interactive landing page where a user can visit, but also a phone number where they can get in touch with a live person. Interaction is always key, and as much as websites are great, if the URL is not easy to type in right off the DM, then it is less likely they will visit it. Keep your URL simple, easy to remember, and don't use a URL Shortner as it will just increase the amount of people who mis-type the URL.

With the website, also make sure you have some sort of analytics in place to track who is coming from the site, how many times, and from where.

0 Votes

All Forum Posts by: Tyler Mills

Tyler Mills has started 0 posts and replied 33 times.

Post: Loan Assumptions

Post: link to my site.

Post: Are Kwikset Smartkeys as insecure as critics say? Have you had one broken in?

Post: Wrapping a FHA Mortgage

Post: Wrapping a FHA Mortgage

Post: Are Kwikset Smartkeys as insecure as critics say? Have you had one broken in?

Post: Are Kwikset Smartkeys as insecure as critics say? Have you had one broken in?

Post: Wrapping a FHA Mortgage

Post: value added?

Post: Direct Mail: Phone Number or Website?