All Forum Posts by: Brian Kempler

Hello, if I plan to sell 10+ houses this year on a land contract, does Dodd Frank apply to me? Does the land contract sale also require an RMLO to "originate" the financing? No lien will be secured against the house by me (the seller). If it matters, we focus on Alabama (Also Missouri although less activity up there).

Hi, if I lease my house to a tenant, and the tenant has an option to purchase, will DSCR lenders look unfavorably upon the tenant's purchase option? Are DSCR refinance loans ever approved in this case?

This article says there are a lot of restrictions on seller financing: https://www.thebalance.com/buy...

1. Max three seller finance properties per year (you as the seller)

2. No balloon payment

That kills a deal structure I had in mind if it is true. Or are there workarounds and if so, what exactly?

Scenario is that you're trying to calculate a potential buyer's monthly payment to you at various interest rates. Easy enough to derive PI from that, but how do you find TI (taxes, insurance)? 

- My theory of taxes for the state of Ohio is to see what property taxes are for a given county, and divide the rate by 12. Then multiply this monthly number by the total sales price.

- Insurance: Not sure. Any techniques you guys use including ballparking would help, thanks.

Hi,

I'm currently marketing for wholesale assignments and also any lease/option or sub2s that find their way to me. I am in a cheap market where one can get 12+% cash on cash returns straight off the MLS.

As I have a fair savings and am in a market with $60,000 houses I was thinking of buying some and reselling on seller financing. I would make money on the mortgage payment, probably 80-90% LTV, and also on the refi cashout by pricing the house slightly above market. I would not expect a quick cashout though, I'm happy to hold.

Foreclosure would be a greater concern. It is somewhat but not totally mitigated by a land contract early on in my state.

I was curious if others thought this was a decent way to invest in real estate or not. 

So far I've tried:

1. Getting emails of people showing interest in local off market REI groups on facebook

2. Posting a dummy house on CL, saying it's gone but should I contact you in the future?

3. Posting my deal to facebook, the same groups as #1

4. Pulling cash sales by LLC buyers (propertyradar). Then skip tracing using batchskiptracing.com

1, 2, and 3 seemed to mostly get interest from other wholesalers. I have not testing #4 yet.

Are there any other methods you guys suggest? I heard trustee sale buyers are also good.

Every month he does 20-30 deals. I ask him how, he said it's all from his network of agents who pass him pocket listings.

Pretty amazing stuff. Does anyone else rely heavily on referrals? How do you build the trust to get to that level with them?

Hi, I'd like to buy a property in the 110k range (my own cash), refinance out the cash and sell it in a land trust on owner financing, deed held in escrow until fully paid off.

The niggle I see is that I think most lenders have a seasoning requirement on the property purchase before you can refi the cash. Is that true or does seasoning only apply to new mortgages?

If the above is not true I welcome any suggestion why more people don't do this. 

If the tenant has a lease your only option is to wait out the lease, should you decide to buy right? 

So if I'm targeting MLS soon (or already) expireds I pretty much can't install a tenant buyer or seller finance someone new. I must be a landlord until lease expiry... right?

Or maybe do a buyout. But there's no guarantee of a yes, and it may hurt the deal viability.

As I think about this, seems like rented houses, unless month to month, really limit your exits.

Thanks for any clarifications on this.

I spend a lot of time outside the US these days and am curious if that's essentially a deal killer for raising capital.

If "not necessarily," I've seen that looking up private lenders (grantees) in the public records is a good way to identify prospects. I was thinking of sending them webinars on what I do, and also mixing in mailings that offer a free strategy call with me. Just curious if you guys think that could be enough for simpler (SFR) deals or unlikely to work.