I write wraps in Austin almost on a weekly basis. Comments:
1. Your interest rates are low. 8.5% is around the "market rate" for owner finance buyers right now...30-yr, fully-amortizing
2. A $30k down payment is going to DRASTICALLY limit your pool of buyers. If you can sit on the sidelines and be choosy this requirement is fine, but you are going to have to kiss a lot of frogs before you find someone with that much cash on a wrap sale transaction...it may take 6+ months unless you advertise like a mad man
3. You have the DOS clause to worry about. I am assuming you know about this, but you may want to consider doing something like a Wally Wrap so that you have an asset to show your next lender prior to your note seasoning. This only really matters if you plan to buy a house again soon...within 9-12 months
4. Instead of doing a 3-yr bullet you may consider making the note adjustable at 1% escalation annually past year 3. This will put you more in line with the market. If you need that equity that soon you may just consider holding out to sell the house outright
5. If you PM me I can get you in touch with a processing company with fair rates. I would suggest that you make the payments on your mortgage yourself and just using the processor for the wrap note
I know this is a really old thread, but I just messaged you. I am looking to do a Wrap in Temple and would love to talk to you about this.
Long story short, I am in a difficult situation with a property of mine and need to get rid of property. We have an offer for someone to purchase our property via Subject To.
Anything I need to be aware of or make sure they do for my protection? This is what they said.
This is what the buyer said.
1: We agree to sign a deed in lieu at closing. In the event we are more than 30 days late on payment the agreement becomes void. Seller retains full ownership.
There is also a provision in the promissory note that states in the event of default, we must deliver the property back in the same or better condition from the time of purchase.
2: We will deed the property back to the seller & execute a contract for deed. The terms remain the same, we still pay the monthly mortgage payment. The only difference is the seller remains on title until we have enough equity to refinance or sell.
3: Typically we don’t agree to balloons. The market may vary one way or the other & we don’t want to be stuck coming out of pocket on the backend as well.
If it was needed to get the deal done, the minimum balloon we could offer is 10-12 years.
.
Never SELL using "Subject To". I can explain why, because I buy Subject To. If you want more detailed advice, I can provide it.
You BEST option is to contact a bankruptcy attorney and find out your other options. That doesn't mean you have to file bankruptcy, but you do need to know there are better solutions than Subject To when in foreclosure.
If you sign a deed in lieu, that means you will no longer own the property and will probably never be able to buy it. It is no longer yours. Period. Doesn't matter what they promise. It's a dishonest promise.
If you are in foreclosure, it sounds like you are either there or headed that way, what you are encountering is a "foreclosure scheme" they are illegal in most places and for good reason.
(I won't do them)
The buyer can be facing "equity skimming" as defined by the law:
Equity Skimming is a type of Mortgage Fraud. The FBI’s Financial Crimes Unit investigates these matters for filing of charges on Equity Skimming violations. As a result of being federally charged with these crimes, you may face monetary fines, penalties, prison time and other consequences of Equity Skimming.
Equity Skimming and related penalties of sentencing are detailed in 12 United States Code USC Section 1715Z-19. These penalties include:
Equity Skimming may also result in Conspiracy charges, specifically conspiracy to commit bank fraud and false statements to influence a financial institution. Penalties of these Federal charges may include:
It's a Federal crime.
Why not rent it out for at least the monthly carrying costs.
Why not sell it on a lease option, get 10% cash up front to fund school?
Long story short, I am in a difficult situation with a property of mine and need to get rid of property. We have an offer for someone to purchase our property via Subject To.
Anything I need to be aware of or make sure they do for my protection? This is what they said.
This is what the buyer said.
1: We agree to sign a deed in lieu at closing. In the event we are more than 30 days late on payment the agreement becomes void. Seller retains full ownership.
There is also a provision in the promissory note that states in the event of default, we must deliver the property back in the same or better condition from the time of purchase.
2: We will deed the property back to the seller & execute a contract for deed. The terms remain the same, we still pay the monthly mortgage payment. The only difference is the seller remains on title until we have enough equity to refinance or sell.
3: Typically we don’t agree to balloons. The market may vary one way or the other & we don’t want to be stuck coming out of pocket on the backend as well.
If it was needed to get the deal done, the minimum balloon we could offer is 10-12 years.
.
Never SELL using "Subject To". I can explain why, because I buy Subject To. If you want more detailed advice, I can provide it.
You BEST option is to contact a bankruptcy attorney and find out your other options. That doesn't mean you have to file bankruptcy, but you do need to know there are better solutions than Subject To when in foreclosure.
If you sign a deed in lieu, that means you will no longer own the property and will probably never be able to buy it. It is no longer yours. Period. Doesn't matter what they promise. It's a dishonest promise.
If you are in foreclosure, it sounds like you are either there or headed that way, what you are encountering is a "foreclosure scheme" they are illegal in most places and for good reason.
(I won't do them)
The buyer can be facing "equity skimming" as defined by the law:
Equity Skimming is a type of Mortgage Fraud. The FBI’s Financial Crimes Unit investigates these matters for filing of charges on Equity Skimming violations. As a result of being federally charged with these crimes, you may face monetary fines, penalties, prison time and other consequences of Equity Skimming.
Equity Skimming and related penalties of sentencing are detailed in 12 United States Code USC Section 1715Z-19. These penalties include:
Equity Skimming may also result in Conspiracy charges, specifically conspiracy to commit bank fraud and false statements to influence a financial institution. Penalties of these Federal charges may include:
It's a Federal crime.
Why not rent it out for at least the monthly carrying costs.
Why not sell it on a lease option, get 10% cash up front to fund school?
Long story short, I am in a difficult situation with a property of mine and need to get rid of property. We have an offer for someone to purchase our property via Subject To.
Anything I need to be aware of or make sure they do for my protection? This is what they said.
This is what the buyer said.
1: We agree to sign a deed in lieu at closing. In the event we are more than 30 days late on payment the agreement becomes void. Seller retains full ownership.
There is also a provision in the promissory note that states in the event of default, we must deliver the property back in the same or better condition from the time of purchase.
2: We will deed the property back to the seller & execute a contract for deed. The terms remain the same, we still pay the monthly mortgage payment. The only difference is the seller remains on title until we have enough equity to refinance or sell.
3: Typically we don’t agree to balloons. The market may vary one way or the other & we don’t want to be stuck coming out of pocket on the backend as well.
If it was needed to get the deal done, the minimum balloon we could offer is 10-12 years.
.
Never SELL using "Subject To". I can explain why, because I buy Subject To. If you want more detailed advice, I can provide it.
You BEST option is to contact a bankruptcy attorney and find out your other options. That doesn't mean you have to file bankruptcy, but you do need to know there are better solutions than Subject To when in foreclosure.
If you sign a deed in lieu, that means you will no longer own the property and will probably never be able to buy it. It is no longer yours. Period. Doesn't matter what they promise. It's a dishonest promise.
If you are in foreclosure, it sounds like you are either there or headed that way, what you are encountering is a "foreclosure scheme" they are illegal in most places and for good reason.
(I won't do them)
The buyer can be facing "equity skimming" as defined by the law:
Equity Skimming is a type of Mortgage Fraud. The FBI’s Financial Crimes Unit investigates these matters for filing of charges on Equity Skimming violations. As a result of being federally charged with these crimes, you may face monetary fines, penalties, prison time and other consequences of Equity Skimming.
Equity Skimming and related penalties of sentencing are detailed in 12 United States Code USC Section 1715Z-19. These penalties include:
Equity Skimming may also result in Conspiracy charges, specifically conspiracy to commit bank fraud and false statements to influence a financial institution. Penalties of these Federal charges may include:
It's a Federal crime.
Long story short, I am in a difficult situation with a property of mine and need to get rid of property. We have an offer for someone to purchase our property via Subject To.
Anything I need to be aware of or make sure they do for my protection? This is what they said.
This is what the buyer said.
1: We agree to sign a deed in lieu at closing. In the event we are more than 30 days late on payment the agreement becomes void. Seller retains full ownership.
There is also a provision in the promissory note that states in the event of default, we must deliver the property back in the same or better condition from the time of purchase.
2: We will deed the property back to the seller & execute a contract for deed. The terms remain the same, we still pay the monthly mortgage payment. The only difference is the seller remains on title until we have enough equity to refinance or sell.
3: Typically we don’t agree to balloons. The market may vary one way or the other & we don’t want to be stuck coming out of pocket on the backend as well.
If it was needed to get the deal done, the minimum balloon we could offer is 10-12 years.
.
Never SELL using "Subject To". I can explain why, because I buy Subject To. If you want more detailed advice, I can provide it.
You BEST option is to contact a bankruptcy attorney and find out your other options. That doesn't mean you have to file bankruptcy, but you do need to know there are better solutions than Subject To when in foreclosure.
If you sign a deed in lieu, that means you will no longer own the property and will probably never be able to buy it. It is no longer yours. Period. Doesn't matter what they promise. It's a dishonest promise.
If you are in foreclosure, it sounds like you are either there or headed that way, what you are encountering is a "foreclosure scheme" they are illegal in most places and for good reason.
(I won't do them)
The buyer can be facing "equity skimming" as defined by the law:
Equity Skimming is a type of Mortgage Fraud. The FBI’s Financial Crimes Unit investigates these matters for filing of charges on Equity Skimming violations. As a result of being federally charged with these crimes, you may face monetary fines, penalties, prison time and other consequences of Equity Skimming.
Equity Skimming and related penalties of sentencing are detailed in 12 United States Code USC Section 1715Z-19. These penalties include:
Equity Skimming may also result in Conspiracy charges, specifically conspiracy to commit bank fraud and false statements to influence a financial institution. Penalties of these Federal charges may include:
It's a Federal crime.
Long story short, I am in a difficult situation with a property of mine and need to get rid of property. We have an offer for someone to purchase our property via Subject To.
Anything I need to be aware of or make sure they do for my protection? This is what they said.
This is what the buyer said.
1: We agree to sign a deed in lieu at closing. In the event we are more than 30 days late on payment the agreement becomes void. Seller retains full ownership.
There is also a provision in the promissory note that states in the event of default, we must deliver the property back in the same or better condition from the time of purchase.
2: We will deed the property back to the seller & execute a contract for deed. The terms remain the same, we still pay the monthly mortgage payment. The only difference is the seller remains on title until we have enough equity to refinance or sell.
3: Typically we don’t agree to balloons. The market may vary one way or the other & we don’t want to be stuck coming out of pocket on the backend as well.
If it was needed to get the deal done, the minimum balloon we could offer is 10-12 years.
Thank you all for the replies! As of right now, we are in the process of trying to sell my SF-LTR.
@Basit Siddiqi two of the properties are STR's and cashflow pretty well. As of now, the cashflow over 3yr would be near if not more than the equity I have right now. My personal residence I think I am going to try and and turn it into an STR and see if I am able to keep it over the next few years.
@Marcus Auerbach that is my exact thought right now. I think I would regret it much more later on, so my thoughts right now are to only sell one of my properties, and decide to sell the others if needed while in school. Not going to school wouldn't be an option for me. This is something I have planned to do for years, and this advancement would triple, if not more, my current income.
@Jason Malabute Cash-out refinance wouldn't be an option for these either. All properties either got financed, or a HELOC during the last 2 years, so the equity available along with the cost of the increased mortgage wouldn't make sense. But yeah, I am thinking right now I would rather just hold.
@Armstrong Maignan, that is not a bad idea to consider. My duplex cashflow's well, so an above market offer would not be a bad consideration at all!
@Gino Barbaro My thoughts exactly. I think I am going to try and hold for now, and sell later if needed. Would be in a lower tax bracket at that point anyways. And if all fails, I could sell after I graduate, and take the proceeds and pay off my high student loans if needed, or just "level up" to a different asset class when I am in another profession.
Howdy!
Considering buying/renting in Clarksville. Lots of folks make the commute. Clarksville is more affordable and has better rent-to-price ratios.
I am a property manager, broker, and investor here in Clarksville. Let me know if I can be of assistance!
I would try to keep it if possible. I bought a condo while in grad school to live in and rented the other room out. I then turned it into a rental as I went on to do my PhD in another country. Best decision I made. Rent paid for all of the expenses, so it cost me nothing and over the years (I kept it for ~20 years) price almost tripled by the time I sold it.
Not sure what grad program is 3 years (I'm used to 2 for masters, 4 for PhD), but if you do need to sell one, I'd look at each property and see which one has the most equity, highest interest rates, lowest return, major expenses in the near future (eg new roof) and you mentioned you'd lived in two for 2 of the last 5 years, so have capital gains exemptions. If one is a duplex and the other a single family home...I'd bet the single family home is the better one to sell. You may not have as much equity, but interest rates are probably higher and you wouldn't have to deal with have a vacancy while you sold it.
Will you truly have zero income while in grad school or will your partner be working? Good luck. Grad school doesn't need to be stressful.
When Do you think the best time would be to sell off a small portfolio?
long story short, I will be starting grad school next year and will not be able to work while in school for the next three years. I am wanting to sell off my 4 properties and use those proceeds to help fund the next 3 years of living expenses for my family and I.
Question is, should I go ahead and sell off all the properties now while I am still have a job and sell will be reflected on 2024 Taxes, them 0 income next 3 years. Sell them all off next year when my earned income will be $0, or try sell Mayne 1 or 2 now, and then the other two next year?
I would immagine from a tax perspective, next year i would be in a much lower tax bracket, but then i am not sure if i might be missing something in regards to student loans, etc...
You likely still would owe capital gains tax on these. I would recommend doing everything possible not to sell and just hold for the future. You wont regret it! Even if you hold just one