All Forum Posts by: Jacob Stephen

With a mortgage identification number and the name of the bank, how can I research the status of the mortgage on a property? Will the bank speak directly to me about it? Or is there some public record of the mortgage? Thanks

Do tax liens typically sell to investors at the New castle county , Delaware sheriff sale ? Or does the county buy them? Any information would be great. Thx

At 4 years you break even. Yes you need to hold the loan for 30 years to realize the full 26%. It seems like such a return on capital. I'm sure the bank will limit how much I can buy the loan down to. Or increase the cost for each additional 25 basis points.

I am debating paying points to buy down rate on a loan.  The property is a multifamily investment which I intend to hold onto for 10+ years.

I am getting quoted 1 point to buy down the loan 25 basis points.

Lets say the base rate on a $100,000 30 year amortizing loan is 4%.  I can buy down rate to 3.75% for $1000.   (100,000 x 0.25%)

In Microsoft excel, I can calculate the monthly interest payment in each scenario (4% vs 3.75%) for the 360 periods(12 months x30 years) using the IPMT function.  

I can then calculate the difference in interest payment for each period. This translates into my monthly savings. I then use the IRR formula to calculate the internal rate of return on the $1000 upfront investment. Since the savings are monthly, I annualize the savings using (1+ Monthly IRR)^12 -1.

The number comes out to 26.69%!!! 

This seems like an insane return provided i hold onto the property.  Am I doing something wrong?  Are there other factors I'm missing?

Thanks

Does the earnest money check (deposit) get made out to the sellers agent/ broker? I found that odd. Typically it would get cut to sellers attorney. Perhaps Delaware is different. Thx

Thanks but I'd prefer to speak with banks directly. If anyone knows of banks active in the asset depletion lending, please lmk. Thx

Are you guys familiar with banks who have asset depletion programs? I know TD bank has a program that's competitive. I'm looking to call a few banks that offer these programs tomorrow. Thanks

The property belonged to a now deceased man. Can next of kin purchase it from the county? Does next of kin need to purchase it at auction or do they get some type of priority?

I found a home in Delaware where the bank has charged off their lien on an unoccupied, boarded up home. The city and county are owed a few thousand in taxes. Can I call the city and county and offer to pay the taxes due in return for the deed? At that point do I own the home outright? Some other issues I may encounter are: 1. Other liens on the property - mechanics liens. Is there a way to run a search without paying for a title search? 2. How can I check the condition of the home? It's currently boarded up. I think some of the windows in the back are not boarded up. Thanks

I am an unrepresented buyer in the state of Delaware. I'm not sure if I should designate the sellers agent as: - the sellers agent and not my agent Or - designated buyers agent and dual agent