All Forum Posts by: Jason McBride

Nick and Steve, excellent advice and links. I personally would not hide this information from the banks and some of the reading i have done suggest that is what some people do and it puts a black mark on the industry. I have a small fear of what if the bank does call it due. Would selling it to another individual be an option? I don't want to hurt the buyers credit thats what i will be trying to save by buying the property from them. Also i don't want to hurt my credit. So in the unfortunate event that they do call the loan due...what would be my options?

What i am curious on is what do you do if the finance company calls the loan due. From the reading i have done in Wendy Patton's book banks can do that but they haven't because the intrest rate is so low. I have already decided that when i start investing in subject tos, after i talk with a local lawyer about some legal issues, i will be sending a letter to the lender informing them. Do you do this? Do you recommend this?

Jon and Will,

I want to thank you both for your advidce the more i looked at the deal the more i realized i was attached to the people and the property, not the deal itself and the way it was structured. I want to thank you both for helpping me realize that. I have been looking hard for deals in my area and actually come across many that i think would be good ones in my area. Now it is time to get over my fear of failure and do something.

Jason

I hope this makes sense.
I guess it is a kind of Subject to deal not 100% sure but it is the financing i am curious on. Since i will have to have it written somewhere that i will eventually pay 130k for the property.

A brother and sister inherited a house the sister wants out while the brother wants to hold out for top dollar. He can afford to while she can not. So in terms of creative financing can i offer to have him Either
A. loan me the money at a given interest for 3 yrs then i have to refinance the house. In refinancing i have to get enough to pay him back plus buy him out.
B. Have him take out a loan for a given amount my renters pay the loan off and again i have to refi in 3 yrs paying off the loan and again paying him his share.

Scenario.
A.
Him loan me 65k I pay her 50k as her share and use 15k as rehab money and rainey day money inicase it sits vacant. 3 yrs from now i have to get a loan to pay back the 65k plus an additional 70k for his share since it will be worth more at this point in time.

B.
Asking price $130k
Loan Amount 145k
The house in this market will only appraise for 95k 2 yrs ago it went for 145k so i feel in 3 yrs it will hit 145k or higher so i don't think refinancing would be a problem.
Since they own the house him take out the loan in his name. Can he legally kick me back 15k for renovations or could they each gift me 7.5k

Also would it be best to finance for only 65k pay her off do my renovations and then refi
or just take out the loan in one lump sum.