All Forum Posts by: Derek Simkins

All good! We will be doing one every first Saturday of the month (Venue subject to change)

You're Invited! 🎉🏡

Creative Real Estate Meetup (CREM)

Join us for an engaging afternoon at Salt Face Mule Brewing Co. for our Creative Real Estate Meetup (CREM)! This is a fantastic opportunity to connect with like-minded individuals and discuss all things real estate in a relaxed and friendly atmosphere.

What to Expect:

• 🔹 Inspiring Conversations: Network with fellow real estate enthusiasts and professionals 🤝
• 🔹 Q&A Session: Bring your questions and gain insights from experienced real estate experts ❓💡
• 🔹 Delicious Food and Drinks: Enjoy the mouth-watering offerings from Salt Face Mule Brewing Co. 🍔🍺
• 🔹 Family-Friendly Fun: Bring the family along for a great time! Take advantage of discounted miniature golf with two 18-hole courses ⛳👨‍👩‍👧‍👦

Don't miss out on this chance to learn, share, and enjoy a wonderful afternoon with the real estate community. We look forward to seeing you there!

See you at CREM! 🎉

That's a good strategy too! I also heard a performance deed of trust and performance note also work very well for Arizona, which is very similar to North Carolina from what I gather. Now it's just down to getting this all in legal jargon!

I have been doing business in Florida but have recently found out that it's like the wild wild west of real estate. I am currently trying to structure a deal in Asheville, NC and the seller has agreed to terms verbally. The only problem is that no one I am working with has done any creative financing before. 

The seller has agreed to..

$275K purchase price, $84K left on a non-assumable loan, Buyer takes over payments (wrap mortgage or sub-to), seller finance the remaining $191K over 30 years, balloon at 15 years, Buyer covers all closing costs, and seller walks away with $5K cash at closing. The seller does not have the money for all the closing costs, I am not able to get a loan because I have recently switched to 1099, this is also a primary residence so all hard money is pretty much out, I have the money to pay the $84K but it puts me in a tight spot and that's a difference of ~$50K cash at closing. 

Seems pretty straight forward, wrap/sub-to the underlying loan and seller finance the remainder but since NC is a deed of trust state, my attorney is telling me it's too risky to do a wrap because I wouldn't have title until the existing loan is paid off.

If anyone has any suggestions or has done something like this in NC, I would really appreciate help figuring out this puzzle.

Thanks!

@Account Closed Legally and wisely is the goal here. Thanks for sharing those posts!

@David M. of course the gurus are trying to sell everyone so they can make way more money through other streams of income. Good point with losing the ability to gain tax free. I plan on staying there for at least 2 years for that reason. Also, I can't afford a traditional loan because of the interest rates and such.

Thanks for all of your responses!

I can see why the seller would want all of this information and how they could be asking for a whole lot more, like a traditional bank. I suppose it just threw me off because the creative finance guys never tell you that part.

I would imagine if I were buying under a sub-LLC, the seller would want to see a few of the parent LLC's assets to feel comfortable in an asset based loan situation? Would you buy this under an LLC instead of buying it in your own name, to avoid a lot of the restrictions and laws that come with doing it as a primary?

Also, I am putting 27% down, which may be why they only asked for a few documents 

I was able to secure a deal with some cash down and the rest seller financed. Seemed pretty straight forward but the seller is being a little difficult. First, they didn't want me to do a loan because they didn't want a second position loan. Okay, I get it. Offer changed to cash and seller finance and sent over. Now they're asking my partner and I to send a full credit report and a settlement statement from a house I just sold!

Is this normal and should I be giving them all this information because they're technically a "bank"? Mostly any bank would run a credit report if they were originating a loan but C'MON. 

I should also add that this one is going in my name as my primary residence but does that change anything? Should I be putting this in a LLC anyway and does that change anything?

 Great question! I think they were using an outhouse but the laws have changed since then.  

@Blake Novotney The things that make it uninhabitable are no septic tank, bad hot water tank, and a huge wasp infestation.

At this point, I have a buyer lined up so I guess the owner-occupied hurdle has been jumped!

@Logan M. Talking with the seller more and asking the right questions, it is not a time constraint anymore. He just doesn't want to have to fix anything for a lender accept it and wants his asking price in full.

I would like to do it that way but the seller is wanting cash and I can't get a HELOC for $100K