All Forum Posts by: Ben Rodrigue

@Teri Feeney Styers I wanted to avoid assuming it since that would clue the bank in on the fact that we are trigging the due on sale clause. I agree, I think that is the way to go. I'm going to insert language that I'm paying the bank directly and, in doing so, my obligations to the wrapped note will be met. Thanks! 

@Jay Hinrichs Loved your podcast! Thanks for commenting. Yes, I'm paying the wholesaler at closing. They are on the HUD. I'm confused why the attorney structured it this way and I have a call into them. I may just go with the flow to prevent further delays but I'm going to add language where I pay the bank directly. In theory, doing the wrap this way does give the seller some protection since they can foreclose if I don't fulfill my obligation but it also takes away some of my control should the seller flake out. Thanks!

@Dmitriy Fomichenko Thanks Dmitriy! 

@Rick Pozos Thanks for the insight. It struck me as an odd way to structure it as well. I'm not that experienced with creative financing but I have been reading a lot and haven't heard of it done this way. I initially structured the contract as a simple sub-to where I would make their payments but when I sent it to title, their attorney came back with it structured as a Wrap without my input. I do have a current mortgage statement and their payoff info so I'm not in the dark where their loan is concerned. Since I'm buying through a wholesaler, I haven't had a chance to just talk to the seller and see if we can structure it in a more simple way. This has been dragging out for a few weeks now with the title company and I'm leery of asking them to redo the legal docs. The Deed of Trust the attorney wrote does give me the freedom to make payments on their behalf and credit it toward what I owe, so I may just talk to the seller and ask if they would be ok with that. The thing is, this is a flip and I hope to be out of it in 4-6 months anyway. 

@Steven Gillmer Thanks for the warm welcome! Too many deals would be a great problem to have. I'll be sure to take you up on the offer if that happens. Haha

Thanks, 

Ben 

@Brandon Miller Thanks for the warm welcome! Yeah, I hope it goes well also. Marketing is one of those things always feels like a waste of money until it yields results. The good news is you only need to get it right once and repeat. :) 

@Manuel Olguin Thanks for the response! The seller is selling me the property for the balance of the loan. The property needs repairs and my numbers only work if I can acquire the property for the current loan amount and if I don't have to pay for hard money or a private investor. My Deed of Trust states that if the seller does not make payments on the first note that I can make those payments and apply them to my note. I'm also going to request that I get access to their online login so I can verify that payments are being made. I think that is the best I can do to learn if the house is slipping into foreclosure and stop it from happening. At the end of the day, I only plan on being in this investment for 4-6 months but you never know. The exit strategy could change down the road. Thanks! 

Hey All, 

I'm just getting going as an investor here in San Antonio TX. I have a ton of life experience in construction, real estate, and business consulting but I'm now moving forward with my dream to both flip and buy-and-hold residential properties. It feels like all of my life experience and relationships have culminated to this exact moment. 

I have spent the last 4 months digesting every real estate book I could get my hands on, listening to Bigger Pockets podcasts, and reaching out to friends in the business. I have my first major postcard campaign going out next week to market for motivated sellers and this week I'm closing on my first flip property. In addition to setting up my new LLC (Safe Equity LLC), I'm building a great team of experienced people to guide me in areas where I am weak (which is a lot at this point! :) ).

So far, Bigger Pockets has been an incredible resource for me. In many ways, the podcast has provided me with more mentors than I could have met if I had spent my whole life in this business. I look forward to connecting with you and I hope I can pay it forward as I grow in this business. 

Thanks! 
Ben Rodrigue

Safe Equity LLC

Hey All! 

New member here! I searched the forums and couldn't find an answer to this question. I appreciate any advice in advance. 

I'm closing on a purchase this week with the goal of flipping the property in the next 4 months. The seller agreed to owner finance by wrapping the current loan. I have had my attorney review the contracts and besides triggering the "due on sale" clause my only other exposure is the seller not paying the current mortgage that we are wrapping around. I'm concerned that the seller could wake up one day and decide to stop paying their mortgage. The promissory note does state that the seller is obligated to pay the existing mortgage according the it's terms but what happens to my position and what is my recourse if they decide to pocket my payments, not pay on their note, and the bank forecloses or calls the note due?

Thanks!