All Forum Posts by: Corey Martin

BP podcasts, blog, and forums have been a great help in grasping the concept of real estate investment.  Thank you to everyone who contributes with intriguing questions and clear answers in the forums!  I've learned so much.  Also, the people I have connected with have been a huge influence:

Thank you @Danielle Wolter for taking the time to answer my prying questions!  It was very helpful in understanding a real life buy and hold investment scenario.

@Sean Kline - Thank you Sean for your significant amount of time and effort in advising and introducing me to the local neighborhoods through the eyes of an experienced investor.  You have been such a fantastic and greatly appreciated help.  I look forward to catching up with you soon!

@Thomas Rutkowski - Tom, you are such a great guy to speak with.  I appreciate the clarity in your explanations, and your excellent guidance in understanding your niche and how I can take advantage of it.  If anyone has questions or wants to bash (kidding) life insurance, Tom is a prime source of knowledge in the subject along with investing in general.

@Joe Villeneuve - I genuinely appreciate your time explaining the investing and real estate concepts we discussed.  You are a wealth of knowledge and articulate very well through your humor and bluntness.  I hope I can bother you in the future with more discussions!  Thank you Joe.

@Michael Perez

When is the next meeting for the REIA's? I can't find much online. Thank you in advance!

Hey Rickey, I'm trying to acquire my first buy and hold near the Fredericksburg area.  I'm not experienced whatsoever, but @Sean Kline is a great person to talk to.  He's a great guy and will spend the time to discuss his knowledge with you.

Are there any rural real estate investors willing to share advice and pros/cons with a new investor?

I would love to hear about the challenges involved with investing in rural areas and any advice you are willing to share with someone considering investing in a rural area.

Thank you!

Awesome, I’ve learned a ton from these responses. Thank you all very much!

@Sam B.  Great!  Thanks for the response.  In your scenario, what happens if I stop paying the mortgage?  Is the property foreclosed on by the bank or does the buyer just have the option to buy the property from the bank, now?

Thank you all for responding.  Listening to the podcasts, I've heard wraps are potentially illegal.  Did I misunderstand that?

@Joe Villeneuve  Would you mind going into further detail on this?  Am I understanding you correctly?  If I owe the bank 200k (mortgage) for the property that would be one lien (bank).  If I sell the property for 210k that would be the second lien on the property (me).  I would be at the butt end on the first lien.  The purchaser would be at the butt end on the second lien.  So, if I don't pay my mortgage the purchaser in the seller finance contract is screwed because the bank has the original interest in the home.  There may be some sort of attempt at a lawsuit by the purchaser against me, the bank, or both to reconcile the lost interest in the property.  I guess you would need to write up an agreement with all 3 parties to assure no one will sue and lay out contingency plans for possible worst case scenarios?

@Dennis M.  Hey Dennis, that's a great question and good suggestion.  I was just thinking it would be beneficial to both parties (I and the purchaser) because:

1. I don't think you're going to find a ton of people who are going to do seller financing that has a huge mortgage behind it right?  (Not sure because I am very new to this, so please correct me if I'm wrong).

2. I would think you'd have the ability to take a much smaller margin on this sort of strategy vs evaluating a rental because you don't have to subtract property tax, vacancy, cap ex, etc. due to you just carrying the note or whatever it would be called in this situation.

3. I should've really put this in the first post, but I'm assuming you have no money in the deal because you cashed out or just had a VA loan or another variation of it to begin with. With that in mind you're earning free money with no work involved except to set it up in the beginning, so any amount of free money would be amazing.

4. Back to the purchaser; a big reason would be so you can go for a larger buyer base such as owner occupants instead of just investors looking for a good price on a property who are willing to fork over a large interest rate payment for the CoC/ROI. If you have a good interest rate on your mortgage and you offer the purchaser a rate just above your good rate, they may choose the seller financing option over a bank considering it's probably going to be a competitive rate depending on the purchaser's credit score.

Would you be able to do a seller financing deal With a SFR you have a mortgage with little to no equity in?

Such as a home you purchased for 200,000 And are selling to someone for near the same price of $210,000 with a slightly higher interest rate than your mortgage?

@Aaron K.

Thank you for responding so quickly yesterday! I guess this wasn’t a very intriguing question for anyone but me. hahah

This is probably a pretty cut and dry thing that most investors know, which makes me even more appreciative of you taking the time to answer. Thanks!

I’m always creeping on the forums but not contributing, and I have a ton of questions especially listening to the podcasts. I’m very new to real estate so my questions may sound like they have a rhetorical answer or are blatantly obvious, but...yeah I have no clue. Any and all responses are very much appreciated!

I love the idea of the BRRR method and buy and hold in general. What I have been trying to run through my brain is what would happen in a worst case scenario of the mortgage/loan on whatever property you purchased using a cashout refinance or even a mortgage you have your typical 20% down in, being called due. What are possible courses of action you can take to avoid losing the property and maybe some money in court if it comes to that?

I understand this is unlikely according to other posts in the forums concerning the subject, but I would love to hear ideas on how you guys would dig yourself out or prep beforehand to avoid the situation altogether.

These are the options I assume would be possible:

1. Find another source of money to pay off the loan such as private money/hard money.

2. Don't worry about losing the property and let them take it if you don't have any money in the deal after your cashout and if the property is under an LLC. (I'm guessing this will damage your reputation)

3. Attempt to renegotiate your mortgage terms with the lender.

Thanks again!!

- Corey