All Forum Posts by: Sean Dezoysa

I've heard the end buyer tends to refi you out after 5 years or so.

Anything to do other than give a fair rate at around ~2% above market?

For those who use a prepayment penalty, what is reasonable? I was thinking 10% of the home price at purchase, reduced by 1/360 for every month they've paid.

Quote from @Joe Villeneuve:

That list, without the eviction filter, is priceless to an investor that understands the value of it.

Thanks Joe, can I ask what you mean?

Turns out Propstream / Property Radar don't have eviction filters anyways so out of state is the winner by default :)

I suppose I could target both, the list size would of course go down a lot.

Although I have also been filtering for 20+ years ownership to find more senior, high equity landlords. I suppose removing that filter to then add eviction may create a stronger motivation signal

Sure Chris I'd love to hear your servicer and what states they operate in (I market over many states).

Ideally, I want to set up the servicer to
1. Pay the seller subto note from my end buyer's account (A-C)
2. Pay me for any additional notes owed to me (B-C)
3. Pay the seller from my account should buyer default (A-B)

Awesome idea @Chris Seveney, thank you! I plan to use a servicer for payment. Do you have any idea for having the servicer auto-bill my bank account as a backup in case the end buyer (C) fails to make payment? Are they usually able to accommodate that request?

I would start foreclosure but need to make payments without interruption to avoid defaulting myself.

Let's assume this scenario:

A-B sale. Seller sells a house for 10k down, 190k note secured by deed of trust in first position

B-C sale. Investor resells house on a land contract, 15k down, 200k note secured by deed of trust in 2nd position.

If the above house ARV is 210k this seems to be a problem: liens of almost twice the home value encumber the house and block a sale or refinance.

So if the above structure is not valid, and a 2nd note can not be attached as a 2nd deed of trust, can someone educate me on how the investor's position should be secured?

Hi @Andrew Postell, after I have sold it with owner financing.

My pipeline is starting to fill with seller finance prospects but I'm not comfortable offering a 5 to 7 year balloon because I don't know how safe it is to have say 10 to 20 coming due within a short timeframe.

Let's pretend the house always appraises at/above my purchase price. Are there other concerns that I should be aware of? Debt to Income comes to mind.

Rural will be a problem for two reasons, lack of people to buy it and most likely those in the area will not understand a wrap. An investor most likely will not want to pick it up as the payment will most likely exceed the revenue so it will be cash negative. Why not just try and sell it outright? 

Hey wants a little more than FMV for it so only a terms sale would work. I'm probably going to pass on it, thanks

I have a house in Bloomdale, OH that I'm picking up on seller financing.  Rent on it is $750/mo and my payment is $500. I'm thinking of selling on a wrap.

Problem is the deal is rural. 700 people in the town. Do you guys think that kills the deal? If not I'd love to hear strategies for moving a house in a low population area.