All Forum Posts by: Chad George

@Chad George

What state is it in? I can provide you with name of a servicer

I agree with Jeff and Rick. There are several types of seller financing. Another additional tip aside from the above posts, is to not go with contract for deed. Texas has strict compliance for seller's with contract for deed since it caused too many issues. Avoid that type of seller finance if possible. I'm assuming you are the buyer (not enough information above to give you more specifics). For instance, seller gives you possession of property. You fall behind on payment or payment is not accounted for. Seller can either evict you or foreclose on you (depending the amount already invested in the property. 

But even if you're not the buyer and possibly on the seller side, there's strict rules you must apply. Anyway good luck!

Notes here about Seller's and Buyer's right: 

If you violate (breach) any term of the contract and the seller wants you out, the seller must give you written notice by certified or registered mail. The notice must tell you want you can do to remedy the breach. If the breach is for nonpayment, it must state what you owe in principal and interest, additional charges (like late fees), and the date of each missed payment.

• If you’ve paid less than 40% of the total purchase price or made less than 48 payments and have not recorded your contract in the property records, you have the right to cure (catch up on all payments due) within 30 days of the notice. If not, the seller can cancel the contract and file an eviction suit in Justice Court to remove you from the property.
• If you’ve paid more than 40% or made more than 48 payments, or if you recorded your contract in the property records and you defaulted on payment after Sept. 1, 2015, you have the right to cure within 60 days of the notice. If not, the seller can post, file, and serve notice of sale as a foreclosure. After a foreclosure sale, the purchaser can file an eviction suit to have you removed from the property
• Nancy Truong, Texas Attorney at Walter & Truong PLLC. 

Get with Ceshker title and use them for all your sub2 and mortgage wrap stuff. They are attorney owned And can bullet proof all your contracts 

@Chad George

What state is it in? I can provide you with name of a servicer

Average price of a single-family was $235,000 and I had $40,000 saved up, which wasn't enough. I started spreading the word to everyone and their brother that I was looking for a cheap fixer-upper under $100,000. Several months later, someone heard about a hoarder house that wasn't listed because the owners were embarrassed. They wanted me to buy it without even looking at it! Fortunately, I live in an area where people don't lock their doors and I knew the Owners didn't live there any more, so I snuck in early one morning and took a 5-minute look. Long story short, I bought it with a conventional loan, 20% down. I gave Sellers an additional 90 days to finish moving out. Even after they left, I loaded three 40-yard dumpsters full of stuff and spent six months cleaning up and renovating. All told, $70,000 spent. It's been rented by the same tenants for six years and is now valued over $250,000.

@Chad George Great question! There are all sorts of different programs, from higher leverage/higher yield private/hard money, to conventional, and everything in between.

Generally it ultimately comes down to what type of investment are you trying to do? If you want to buy a turnkey investment, conventional may be your best route, you could get an 80% LTV loan with rates in the 5-6%+ these days. If you're trying to do a deal with a construction element, you'll probably need to seek private/hard money, which can get you leverage at 80%++ with rates in the 8-9%++ range.

In any case, focus on networking with a variety lenders, especially those that are local to where you’re investing. Relationships are key in the business!