All Forum Posts by: Jonathan Marcus

There is the Property Owners Association of NJ (poanj.org) They usually meet in West Orange.

@Account Closed actually it is easier to do it the other way around, speaking from personal experience. When I found a great deal, I have no problem finding cash buyers, if I am looking to wholesale or private lenders, if I am looking to buy it, fix then flip. 

I know you think it's safer to have a list of buyers first but as you've already found out their criteria can run the gamut. Here is the key, THE MONEY IS IN THE DEAL! Focus and become really good at sourcing deals and cash buyers will reveal themselves and be plentiful.

If you have a mortgage on the house, transferring it to your LLC will trigger the Due-On-Sale clause on your mortgage. The bank may or may not accelerate the mortgage (demand full re-payment) but if they do, they have every right to do so. If it happens then you have to refi to pay them off but here's the rub, the new mortgage lender most likely will balk at your taking title under the LLC instead of your name.

If you really want the title out of your name, the best way is transfer it into a Land Trust which is allowed by law and will not violate the DOS on your mortgage.

Private money would be the way to go here. You can borrow money from individuals in exchange for a good rate of return, partial equity or both. As long as the numbers justify the private loan this would be the easiest way to go. You can secure the loans with a second mortgage against the properties. A good source are people with IRA who are not getting a good return on their investment. Check out Quest IRA on how people are using their IRA to invest in real estate.

You need to re-access your investing strategy. It seems you are over leveraging your properties which is why you feel like "taking from Peter to pay Paul" as you say. I think you already know the answer. Slow down and pay off some debt and take some of the weight off from your properties. In my opinion, it is better to have fewer properties that cash flows really well than having a large portfolio that barely breaks even. 

Personally what I did many years ago is have my Realtor pull up recently expired listings on the MLS. Then I sent the owners letters offering to buy their property. Especially if the property is vacant and it sat for 6 months on the MLS without selling, you may be able to find a motivated seller.

It should be fine. I have not heard of a mortgage stipulation allowing a bank to accelerate a loan because it went from owner occupied to non-owner occupied. The only problem I can think of is if it was an FHA owner occupied loan which goes into short sale or foreclosure; because it can be potentially considered fraud since the loan is for owner occupied not investment. But as long as he continues making the payment to the mortgage company and avoid default, your client should be okay.

I think it is good deal and the owner financing terms is excellent. I would suggest that you put a Right of First Refusal on the note just in case if a few years down the road the owner decides to sell the note at a discount, you get first crack at it. 

Good luck.

@Darren Sager looks like its going to be another great event. I am looking forward to it. I will be there. 

As an investor, having a license is very helpful. However, if you choose not to get one, it is perfectly fine. When wholesaling you just need to make sure that your contract is completely valid in the state you are operating in. Have you attorney look over the contract you're using. 

In my agreements I always give myself the ability to assign my contracts. Even if I am using a contract drafted by the sellers attorney, I will add an addendum which gives me the ability to assign.

I explain to the seller that there are times my partners would like to buy me out of the deal or I will be creating a new entity to hold the property in so, I need the ability to assign my agreement to another entity. As long as I explain to the seller that they still get their agreed purchase price, I have never had one that said no to me (adding an assignment clause).

Also understand when you wholesale, it means your buyer is another investor. NOT the end consumer. So your buyer-investor knows exactly what you're doing. You do not have to double close necessarily. Once I assign my contract, I create an invoice and send it to the title company handling the closing and I get added on the HUD-1 on the seller's side as an additional payee. If my seller asks, I explain to them that my partner is buying me out of the deal as I have informed them before; which have never really happened to me because my sellers are just happy to receive the money that I promised them and for them to be rid of an ugly house.