All Forum Posts by: Clay French

@Derek Dombeck I would never get into an agreement with someone if I didn’t intend to fulfill it. I was talking absolute worst case scenarios. I’m glad you called me out on that though, because I’d hate for anyone to get that idea about me.

@Joe Villeneuve thanks for your reply! I’ll try to clarify my first point. I’m looking for properties where I the sellers aren’t looking to make any money. They just want to unload the property. I would literally just take over making payments. The seller would not walk away with any cash.

As for the sellers not making payments, my plan was to have everything paid out of an escrow account held by a title attorney here in town. Would that solve that problem?

When I talk about refinancing, I’m not talking about a cash out refi, I’m talking about just refinancing it with another mortgage company to pay off the original mortgage, so the property would still be able to be used as collateral in that case, right?

Thanks again for your response. It helps me to talk things like this through.

@Cory Bousfield I'm in Louisiana and we're in a similar position. We're not afraid of tackling a renovation projects and we've got a fantastic general contractor that we've worked with in the past. We are going to leverage that relationship to buy a house with an interest only construction loan and then refinance it with a traditional mortgage after the work is completed. Our bank will loan up to 87% LTV on the refi, so we'll be in the house with $0 money down.

I’ve been involved in real estate sales and investing in various capacities for the past 12 years. My family has 20 doors that we own, and my wife and I are wanting to start buying some separately for ourselves. Another investor buddy brought me a financing idea and I just can’t see a downside...

1. Find a home that is a great rental prospect but the owner just wants to get out from under it because they either don’t have the time or equity to sell it to a traditional buyer.

2. Write an offer for what is owed on the property with the seller agreeing to let an LLC take over the current mortgage.

The worst case scenario I can come up with is the bank finds out about the arrangement and exercises the acceleration clause on the note. Since I’m not guaranteeing anything personally, I could just let them foreclose and I’ve just lost some time, or I can refinance and move on with my life.

It can’t be this easy can it? What am I missing?