All Forum Posts by: Jay Jonez

@John Fossetti gotcha is there a way to wrap the interest from the hard money loan into the loan and pay on the back end?

Any one that’s used this strategy of using hard money and private money on a deal. I would love to hear your experience with that and the process.

- currently I have a flip with a private money lender who lenders 75% Purchase price 50% Rehab. Which is fine but I’m working on buying another property (but I would have to wait to sell that property to buy another ) .

So I’ve been researching I can use hard money as the 1st lien and use hard money for just the down payment portion to make it 100%.

@Drew Sygit yeah I know that I was just pre paring when it starts back up. What sources people use to see pre foreclosures ?

Just wanted to see what you all use for getting a list of properties in Pre-Foreclosure ???

I used to use REIPRO to get them but $97/ monthly is a little costly .

I also have the option to subscribing to legalnews.com which is $80 for just one county and $210 for three county access. Which may be okay just seeing if someone has a free option/ website that will provide pre foreclosures properties

@Aaron K. Thank you how does the Rehab draws work. Lets say the purchase price is $50K and Rehab is $30K. The lender is willing to find 50% of rehab.

The $15K the lender funds for the rehab is that apart of the total loan amount?

So I have just a few questions about private money. I believe I might just be overthinking it but if anyone could help it would be greatly appreciated. I’ve been watching a lot videos and spoke to a few Private Lenders while wholesaling.

1st Question: if I have a lender willing to fund 75% of purchase price and 75% Rehab. Does this mean I’ll have to come up with a down payment?

2nd questions: I was reading that the PML can get paid if you refi. Does that mean only a “cash out refi “ or will a regular refi do the trick where the lender gets paid?

@Tom S. I think your right Tom after doing more researching an understanding seller finance a little more Free and Clear seems to be more cleaner and if the buyer defaults for any reason at least the seller won’t have a mortgage owned by a lender which could much messer.

Plus after thinking about this deal selling the note to a investor at a higher interest wouldn’t make sense for them.

Thank you for your feedback

@Tom S. Ok the seller wants to do a balloon payment after 7 years. Will this be a deal killer if I do $10K down at 4%?

@Andrew Postell

I plan to wrap his mortgage.

The way I would make money would be on the downpayment and on the new terms to the buyer I would raise the interest rate which would create a spread that I could collect every month .

For example : New terms

Interest rate : 8%-10%

Down payment: $10K ( give the seller $3000)= I would make $7000 upfront

Seller current loan:

Interest rate : 3.5%

@Andrew Postell thank you for your reply this is my first time trying to do creative financing I’ve done wholesale deals. I’ll do my best to answer your questions below in order

•The seller already has an existing loan on the property. The seller is willing to do seller finance if he get his price of $80K.

• I’m hoping to get the down payment and sell the terms to an buy and hold investor who would like the cash flow. It’s currently rents for $1000 and could be $1200 for market rents.

• the wrap I was hoping I could structure if it made sense.

•You’re right about the rents I would need to have a lease for the current tenant in place and the owner would collect the rents. Which I don’t know if he would go for it.

• the numbers I referenced ( were provided by the seller such as his monthly payment of Principal, Interest,Taxes and Insurance of $700 and interest rate 3.5%)

• I was researching and seeing conventional is one the loans you do a wrap on. FHA you can't do it.