All Forum Posts by: Carlos Webel

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@Dion DePaoli, thanks, you explained very well what I was attempting to do. I guess as @Wayne Brooks mentions, it's not really a 4% interest loan. The seller ended up taking my cash offer at a lower price so we are good for this particular property. 

Thanks @Cameron Tope, I'll look it up. I have to put the ~20% down in full because this is the last transaction of a 1031 exchange that I'm executing and I have to exhaust all the remaining balance so I don't have a boot to pay capital gain taxes on. What's making this different than a conventional loan is the amortization schedule that is not standard but a fixed interest, that allows me to build equity lot faster and hence makes the deal attractive. I know owner financing is legal, but my question was around the legality of the modified amortization schedule. 

Thanks for the input 

Dear all,

I'm working on a 3/2 SFR rental lead in Houston Metro area. Asking price is 175k$ and I'm coming back with the following 2 offers:

• a)160k$ cash, no contingencies
• b)175k$ Owner financed with 40k$ down and 135k$ financed over 30 years at 4% with no pre-payment penalty

I’m structuring the amortization schedule such that the monthly payments are exactly the same $ amount as with a conventional loan; however, I’m turning it into a fixed interest / fixed capital amortization schedule to build up equity much faster. The way I came up with the numbers was using a conventional amortization schedule and summing up the total amount of interest over the term of the loan (360 months), then dividing that amount over 360 to come up with a fixed monthly interest and hence a fixed capital amortization.

As a result of this change, my equity build up during the first 5 years is $22500 instead of $12896 (with conventional amortization schedule).

Has anyone done this before? Any comments on your experiences? Is this considered legal in Texas and/or other states? Can this be called a 4% interest rate loan? We will run this through a lawyer and provide full disclosure of the details to the buyer but wanted to get some feedback from the greater community upfront.

Thanks, Carlos  

@Scott Groves ... I'm using Equicap Exchange, If you send me a PM I'll give you the feedback.  

@Steven Loveless @Igor Messano @Alex J.@Chuck Webb Thanks for the feedback. I've shopped around since then and got some good contacts from different sources. It seems like the quick turnaround for closing had something to do with the offered rates. I found one lender that assures he can close in less than 3 weeks at 4.5% or lower (30Y fix). I'm moving ahead with him but I still have my concerns. I have a backup plan to pay all cash but that would significantly slow down my acquisition plan for the year. With the lenders you're dealing with, have you seen a correlation between turnaround time and interest rates? 

@Account Closed, I'm using Equicap1031, I talked to one guy there that seemed very knowledgeable and decided to go with them. They are charging 750$ for the sell and 250$ for each purchase. The only problem is that the guy I was dealing with just left the company so I'm now trying to manage an unexpected transition. 

Hi all,

I'm selling a condo in Miami, FL and reinvesting the proceeds in several properties in Houston, TX. I'm doing a 1031 exchange so I'm time bounded on the identification of the replacement properties (45 days). I made couple of cash offers with enough time built in the closing date to try to get conventional mortgages in before closing so I can buy more properties with the cash proceeds from the sale of the condo. I'm working with a lender (mortgage broker) that confirms he can close on time. However, I was surprised when I saw the rates. Below the details of the financing on one the the properties:

- 3/2 SFR

- Purchase Price = 146k$

- Down payment = 36.5k$ (25%)

- Loan Amount = 109.5k$ (75% LTV)

- Loan Type = 30Y Fixed (Non-owner occupied / Investment) (Fanni mae loan)

- Interest Rate = 5.25% (No points upfront)

- APR= 5.435%

The loan will be on my personal name. This will be my 4th conventional loan, my credit score is 760+ (FICO) and my assets/liability and monthly income Vs expenses position is very strong. 

I was expecting the interests rate on this 30Y Fixed loan to be around 4.5% o less. Am I missing something major here or is this a very bad deal and I have to talk to a different mortgage broker?

Rgds, Carlos

Hi,

I'm currently working with a local bank to get a line of credit using my stocks as collateral. This particular line of credit doesn't require the stocks certificate to be transferred to the lender. They agreed to lend up to 80% of the value of my portfolio with an interest rate of 5.5 to 6%. I thought this was a fantastic deal until I was told that some of the bigger banks are offering the same products with interest rates below 3%. Based on this a talked to Chase Bank and they said they do have this product with interest rates below 3% (base on Libor), however, for the same portfolio they would only lend up to 50% of the value of it and it requires a portfolio size of at least 500k$. So that option won't work for me. 

Has anyone had experience with these type of line of credits in Texas either with smaller local banks or bigger firms? Anything around better than 5.5 to 6% with 80% of the portfolio value for a ~200k$ portfolio? 

I know I'm giving very general information and that a lot of this will depend on the stocks held on the portfolio and how volatile they are considered as well as the person borrowing but I just wan't to have a general feeling of what people is doing out there and potentially get some additional contacts for banks working with these type of line of credit. 

Thanks, Carlos   

Hi @Sean Dolan, anything else cooking for the Katy REI group.