All Forum Posts by: Jack Ni

Yea, sometimes it make you feel good when the rental check roll in. It gets boring so I want to find a boring real job as well. Like a job that get people’s movie tickets, it looks fun, it feel like handing a adult a candy, they seems excited lol

@Steve Vaughan Thanks, I checked in my state, it’s legal. After hours of research, I just don’t like lease option and land trust now. I agree with you, it’s a horrible investment vehicle  because of uncertainty of when will the loan be call due.

@Blair Poelman 

Thanks for your insight. You had many good points and I sure definitely rethink my bix plan as well. 

I was reading lease option and subject to deals by Wendy Patton. In her book she said if a investor put a deed in a land trust to cover up the due on sale clause, this action could be consider a mortgage fraud; because if a court rules that the intent was to keep the bank from exercising its legitimate rights by hiding an important fact (deed transfer), I can be accuse of mortgage fraud. I did some research on mortgage fraud, it's a serious crime, it could land me in jail for a long time because we are dealing with a large sum of money. 

I don't know how Wendy Patton got that theory, and I have no way to verify if her theory is actually true. I would argue that if a investor puts a deed in a land trust, he is simply taking advantage of the law not committing a fraud. 

If you are a loan officer for a bank, would you consider this a fraud? Are you aware of any laws or clause that would build a case for the bank to sue the investors for "subject to" deal with land trust? If you have a subject to deal and it's in a land trust, would you be worry about being sue for fraud? 

What is the worst case scenario? Would I go to jail for hiding the deed?  Hypothetically

I hear a lot of investors talking about Buy, Rehab, Rent, Refinance, Repeat to get as many as 100 doors. The number don't make sense and how do you refinance? Here is the math. 

 See if I am doing this right, Buy a house for $80k,  after rehab, it's worth $100k. It's rent's for $800 a month. Cash flow around $300(after all expense), If I can get 30 year loan with 5% interest.  Already have 2 house under the belt, so debt to income is already over 50%, how would I go about refinancing this home if I'm already reach my limit in debt to income ratio? If I add in rent income, it would not be enough (because rent income is about $300 and mortgage is about $500 per month (with tax and insurance)), it would increase debt to income ratio). 

Please enlighten me on this. 

Congratulations!! Got a question for you, when you refinance at 75%, does the bank look at your debt to income ratio? 

Hi, please help me out. This is the first time I'm doing a land trust. So I have a lease option with the owner and i want to put the title in a land trust (The deed  is still under owner name because of due on sale) 

How would you go about structuring it? I was thinking about putting me as the beneficiary and the trustee for the land trust. Or should I put both name on the beneficiary with 50/50 ownership on the trust (because beneficiary need to pay the property tax, I'm not sure) ?  

What happen when he need to transfer the deed in 23 year? I can easily take out the title in the land trust and transfer the deed under my name right? (We have lease option agreement for 23 years, after I pay off the loan he would transfer me the deed to the property. ) 

Also, I would assume I would put trustee under my name? because I'm not doing a land trust for privacy reasons. it's just for protection against personal liabilities such as bankruptcy.   

The state I live in is Arkansas. If you need more info to make a judgement on this situation, please let me know. Thank you so much.

I also invest in stock as well, my 2017 return is almost 60% in high growth blue chip stocks (not to brag or anything, just let you know I can think from your perspective.) Even with this kind of return in stocks, i’m Still afraid to put more money in stock because it’s IMPOSSILBE to predict the stock market.  If crash happens, you will wish you had cash to buy those undervalue assets. 

what is adverage price per door? And how much equity do you have in each door after close? Thanks

It’s impossible to predict the next real estate crash; just like stock market, those who say they can, are 100% full of crap.  If you know someone that predict the last real estate crash or the stock market crash, well that’s because he predict there will be a crash EVERY SINGLE year. Nonsense.