All Forum Posts by: Kenny Breeze

Because the risk that buyers or sellers backing out is higher. We always explain to to both parties what we do before signing an agreement, but even so when closing comes around and they see our fee and 50% of the time one side usually always wants out “because they didn’t understand”.

Some deals we can do wet double close, but with the current deal we want closed the funds are just not there on our side.

Does anyone have a dry pass through double closing title company in Colorado that they’ve worked with recently which does dry double closing, meaning C buyer funds A seller and B keeps proceeds?

I’m finding it very difficult to find one.

thanks in advance.

@Matt Devincenzo and @Steve Vaughan

To clarify, the property I'm seller financing is vacant undeveloped land. So no structure is on it yet. But the buyer wants to build on it and develop it as soon as we close.

I want to be insured in case the buyer defaults on payments. A policy of those sorts. 

Hey everyone,

I want my buyer to get insurance on this deal, but I'm not sure what type of insurance they have to apply for. I've read that mortgage insurances are only available for institutional lenders and I haven't found any equivalent for seller financing deals. Do you have any alternatives?

@Chris Seveney

I know vacant land is exempt if it stays undeveloped during the loan period, but the buyer wants to develop and build ASAP and intends to use it for personal use. Does vacant land stay exempt then?

Do you have an example of a licensed servicer? We want to use ZimpleMoney.com to "service the loan"/set up payments. Is this what you mean.

@Joseph CacciapagliaThanks for the input. 

We're already looking for an attorney in Colorado, as this is our first deal there, so yes we will definitely ask this question to them. I just wanted a few pointers to get a better idea.

Based on on what our buyers have told us and our pre-lim research on them, they have the needed cash on hand for development, down payment and enough for monthly payments. The buyers own multiple large multi-family properties down in Florida and want to return to their hometown in Colorado where he grew up. So also very motivated. Essentially they told us they could cash buy, but would rather seller finance so they don't have to get a HELOC on more than one of their properties in Florida. Plus when they develop the property and build something on it, it'll become more "Sparkly" for banks and they could refinance some time down the road.

If our MLO approves them and they have the willingness and ability to pay their payments, we will probably sign a mortgage and transfer title to them so they can get started with development (Land entitlements, utilities) and construction of their intended property, so they don't have to wait a long time to be able to build on the property. We are aware that this is risky and unconventional when it comes to SF, as we'll have a a harder time to foreclose and have more of a headache if they default, but if they have the assets, access to funds and construction experience like they say they do, I'm fairly confident in transferring title. Plus, we're charging them a high interest rate and high down payment to cover some of our risk, but we'll have to wait and see what the qualification results say.

Last, we want to wrap the loan up in a 5 year balloon and that's where Dodd Frank may give us an issue, I've read. I think we can only wrap this in a balloon if the lender (us) is a natural person, trust, or estate. And that may be an issue for us in regards to taxation of profits, loss of the protection an LLC offers, etc. I'll have to figure this part out with our attorney.

My partner and I are looking to seller financing a piece of vacant undeveloped land in Colorado. This is our first vacant land seller finance, so we have a couple of questions.

My questions are:

1. Do we need to use a RMLO per the SAFE act and Dodd Frank or are we exempt and can we use any good old background credit check screening service?
2. Do we fall under the 1 or 3 property exemption?
3. I believe vacant land is exempt from the Dodd Frank act, but does the exemption hold if our buyer starts developing and then building on it?
4. What RMLO do you recommend in Colorado? 

Following criteria apply:
The buyers are looking to use the property for personal use
The buyers want to develop the property as soon as possible (install utilities, land entitlements, build a structure)
Our first seller finance deal this year 
Preferably our LLC should be the loan originator and not us as a natural person
5 year balloon

Thanks for all the answers in advance.

Anyone have a screening service they use for screening buyers for a SF deal?

I'm seller financing vacant land and was wondering, when using the deed of trust loan instrument, if the borrower can build on the property as they see fit (obviously adhering to zoning restrictions) even though they don't hold legal title? 

Or do they have to ask the trustee for permission, since the trustee holds the legal title and the borrower only the equitable title.

Facebook ads are a great tool that is up and coming in the real estate marketing sector. Facebooks vast store of information is unparalleled (except for Googles) and if used correctly you can become a dominator in your target market. No doubt.

I've done facebooks ads for my e-commerce dropshipping store, have helped others reach their marketing goals in a variety of industries (including real estate) and I'm having more success in getting motivated home sellers with Fb ads than any other "old-school" method. So, if you set up your "interest" targeting correctly and create an "FB creative" that attracts motivated sellers, you can definitely get a lead for as low as $10! And that's before lookalike-audiences/retargeting. Try beating that with yellow letters. 

I also agree with @Chris Tracy 's general "5 steps formula". You need a sort of "brand awareness" for you and your real estate business and then retargeting the customers you've acquired with new content using Facebook ads. Yes, that includes making short facebook videos, writing blogs, posting them on your FB page and commenting/answering on topics in your industry online. In a sense, you're becoming a small marketing agency, but in the end real estate is doing marketing more than the real estate part.

The issue though with Facebook ads is that there is a big learning curve to it and takes time to understand, but I think it's definitely worth it once you've achieved somewhat of an understanding of the mechanics.

Hope this sheds a little light on the whole thing. 😁👌

Your Young Marketing Guy, Kenny