All Forum Posts by: Jason Dillard

Experienced full timer here in Greenville. Let me know how I can help you.

If you are talking about buying subject to existing mortgage, then you won't find it on a Realtor's contract. I've never had a Realtor assist in one. I would be more concerned as a beginner in locating the local investor that will mentor you. The mentor has a contract for you. By the way, buying sub 2 is the bees knees.

If seller will finance 100 percent, get him to delay and/or take graduated payments to give yourself time to save/make/find the rehab money. A seller financed note is like silly putty. It can stretch and flex.

Sub2 is almost always better. The only time we buy with CFD instead of Sub2 is when we are taking over a HELOC. In this case, bank is likely to call loan due if deed is transferred. In the mean time, get seller to "freeze" the line of credit. In this case, the CFD is an identical wrap. In other words, the terms of the CFD are the same as the underlining revolving debt. Be careful, the HELOC will eventually convert or balloon. Make sure your exit happens before then.

Count me in. I'm new to BP, but already own a 24 unit apartment. I am always looking for ways to gain more knowledge.

Get seller to subordinate a couple of doors to make it easier to get the money you need in first position. Lenders like to be in first. Now you can find the cash at your local reia club so much easier.

I've over paid for a property a couple of times. The one that comes to mind is a house that rents for 650 that we put nothing down and pay 300 a month at zero percent. The value was more than purchase price, but over time, we're gonna catch up. Plus, it was rent ready and we placed a tenant/buyer with 3k down.
Always ask the seller for terms that work when he is stuck on his price.

Most deals I buy with seller financing happens because I have built some trust with the seller. For this reason, I almost never assign that trust to another. However, if you can find a trustworthy buyer and disclose it to the seller, then it's OK. Use a separate assignment of contract for the 2k. The "down payment" wont appear on the contract for sale.

Use a sales contract that has a "purchase money note" as the method of sale. Here is an example from the one I use:

Purchase money loaned by seller $__________________
Payment: ______________ Rate: _______ Term: ____________
Balloon: _________ First Payment and interest begin: _________

Just fill in the blanks. Sounds like you have a 0 percent loan from the seller at 800 a month, with a 2 yr balloon. This will require a closing to put buyer on title.

Yes, your buyer and seller will have to get to know each other. They meet at the closing, that I would not attend.

Most of our IRA lenders moved their money to a self directed custodian to lend to us. We acquired the lender in the same way we found the ones that lend out of their pocket. Every person I come in contact with fits into only three categories: a seller, lender, or neither. Its my job to buy from sellers, and borrow from lenders. Don't need to discuss the "neither". The hard part is some lenders don't know they are lenders at first. The key is to never forget to mention that you can show the lender how to make the return they are looking for in their retirement account too. Treat them like gold and be patient.

We have more lenders than deals we can find. Since all of our private lenders allow us to have accruing loans, we don't make payments. When you don't have payments, you can buy as many deals you can find, even if they take longer to turn.