All Forum Posts by: Eric Williams

A lot of people are buying houses sub to where ownership of the property transfers to the buyer but the existing loan stays in the sellers name and the buyer just takes over payments.  Could you trigger a due on sale clause?  Yes it is possible.  Chances of that happening are very unlikely.   If it is a small lender more of a chance as they might review things more carefully but larger lenders won't be looking that closely.  

If you really want to change into the new LLC just make the transfer and do not inform your lender. If they do find out you can always deed it back to the original entity to avoid the due on sale.

Make sure you make sure the insurance has the original entity/owner on the policy as the policyholder or additional insured so that doesn't trigger the due on sale when sent to the lender

Hey Prem,

1. You do not need any license to lend in Texas.  I have done lots of PML lending here.  You can get the title company to draft up a promissory note and deed of trust.  

2. As long as the title company files the note and deed with the county then it's easy to refinance in the future.

3. I like two different title companies in Texas.  If you want an introduction to my contacts at either feel free to DM me.  Hope that helps

www.ceshker.com

https://pattentitle.com/

Use the one that has the better rates, terms, service for your particular deal.  You can always refinance down the road or try a different lender on the next one.  You will inevitably use multiple lenders throughout your investing journey.  I have one I love here in Texas but they don't lend outside of Texas and don't lend on land or commercial properties so I have to use different lenders.  

Do your due diligence but also don't stress out too much about it.  If the rate and terms offered give you the returns you need then it will be fine. 

Other hidden costs you need to consider when evaluating HM lenders:

-Applications Fees

-Administrative Fees,

-Commitment Fees

-Underwriting Fees

-Origination Fees

-Loan Servicing

-Rehab Draw Fees

-Inspection Fees

-Interest paid on undrawn rehab budget?

-Loan Extension Fees

-Early Payment Penalties

All of these can really add up 

Lots of good advice from everyone else above, but wanted to add this as if you can find a lender that minimizes these extra charges that can make a big difference

There's a pretty solid Sub-To community in the Las Vegas area.  They have lots of meetups and are very active.  I know a few Vegas people in that group.  You can find them through Pace Morby.  

If you are looking at rent by the room consider using Padsplit.  I have a couple of them in the Houston area and it just makes the legwork of filling up vacancy in a rent by room scenario much less of a hassle.  My Padsplit rep is actually based out of Vegas as well.  Feel free to reach out if you'd like her contact info

Other hidden costs you need to consider when evaluating HM lenders:

-Applications Fees

-Administrative Fees,

-Commitment Fees

-Underwriting Fees

-Origination Fees

-Loan Servicing

-Rehab Draw Fees

-Inspection Fees

-Interest paid on undrawn rehab budget?

-Loan Extension Fees

-Early Payment Penalties

Lots of good advice from everyone else above, but wanted to add this as if you can find a lender that minimizes these extra charges that can make a big difference

I also invest in Texas and I can't recommend Blink Lending any more.  I know the owner Paul and all of the loan officers.  Really awesome company for any type of institutional loan.  Good people.

https://blinklending.com/

Also for stuff outside of Texas I use this lender.  They will also do stuff in Texas but I use Blink in state, but feel free to compare

https://gcgfunding.alphagatorfunding.com/

@Steven Garza I will DM you

@Tyrell Blake Jr I sent you a DM with my contact info.  Please reach out!

@Alfredo Burgos the "script" will depend a little on the type of lead you are contacting.  I will start off a call differently for a foreclosure lead than I will for a vacant house or probate.  It's all a little different.  Confidence is the key and is more important than the script!

Happy to discuss in more detail with you.  Feel free to DM me