All Forum Posts by: Account Closed

I now have a motivated seller who is willing to go the “subject to” route; however, like many homeowners in a military town his mortgage is through USAA which is also his bank. 

USAA's website is essentially a "one stop shop" for all their member's accounts/mortgage/insurance etc; meaning that having access to his mortgage information online, I would also have access to his checking account etc. We’re not closing until next week, but I foresee it being an issue. In order to have full control of the property, I require having online access to the account as well as paper statements/correspondence regarding the mortgage sent directly to me. 

Is there any way to separate the two? Has anyone come across this issue? I would rather figure it out here, than have to talk to the bank. 

Lloyd Stanton.
American.

I obtained several properties "subject to" the existing loans. The properties are in a trust for which i am the trustee/owner, while the mortgage remains in the sellers name. As to not catch unwanted attention from the mortgage lender regarding the nature of the transaction, and thereby possibly triggering the "Due on Sale" clause in the mortgage i tend to avoid unnecessary contact with them. I would like to take out a HELOC against the "subject to" properties for some non-RE projects, and would like to know if that HELOC would send up any red flags with the lender of the mortgage i took "subject to"

i.e.

Mortgage Lender: Why is Lloyd Stanton taking out a HELOC on a property that is in the "Smith Family Trust", when the mortgage is still in "Bob Smith's" name?

I have full authority via a Power of Attorney to do so, just wonder if anyone has done so, or does it pose too much of a risk of triggering the DOSC.

Gooood morning Biggerpockets! 

I currently have several properties obtained "subject to", and am currently exploring options to utilize their equity to fund other non-RE projects.

While my POA on the trust allows for it, would obtaining a HELOC on a "subject to" property trigger the Due on Sale Clause? Or send up red flags that would catch the lender's attention.

How much communication/involvement is there between a bank and a lender when a HELOC is associated with a property?

Lloyd Stanton.
American.

I run across the same issue with a wide spectrum of the population. Real estate agents, bankers, lawyers etc. It just boggles the mind. Im trying to GIVE YOU MONEY! Answer your phone! 

I appreciate all the replies.

They decide that they're only wanting to sell 10 of the properties. They are essentially looking to cash out all the equity above what they owe and are willing to carry a contract (length TBD)

Total asking price is $750,382.33 and they're willing to negotiate

Total FMV (best I can assume [Zillow, Trulia etc]without being there) $900k

All properties are rented out to long term tenants

My intent right now is to get all 10 properties under contract, providing the sellers with an option fee for each house, and upon return to the Americas this fall. sell or rehab and sell 2-3 in order to provide enough down payment to finance the rest (if I can get a commercial loan for all 10). If I cant finance, continue to rent the properties and make balloon payments to the owners along the way.

Issues: I work as a contractor in beautiful Afghanistan and will be out of the country within the next week or so

Questions:

Is getting the 10 properties under contract and deal with them when i get home a good course of action if the sellers are willing?

What can be done to ensure a vested interest in the properties? Title lien?

Can I have a lawyer handle all of this being im not currently in the country?

Which type of lenders would be conducive to lending to purchase multiple SFHs? (I don’t have any small bank/credit union accounts, only Hell’s Fargo, HSBC, and USAA)

Any and all input/advice/suggestions are welcome and appreciated.

Lloyd

Much appreciated!

During a conversation with a prospective tenant's previous landlord, he asked if i was looking to buy additional properties in TN. He told me that him and his wife were divorcing and need to sell all 14 of their rentals, and would be willing to sell all of them together for a pretty steep discount if sold all at once. regardless of the purchase amount, what are my options for purchase multiple (if not all) properties at once? I have about $50k cash at the moment to play with.

Would it be feasible to use a hard money lender to finance if i planned on rehabbing and selling several of the properties and utilize the profits and my current salary to pay off the rest?

He indicated he wants to be cashed out, so Im waiting on him to email the details/numbers before i pitch owner financing

What other options are available?

Lloyd Stanton

War Mongering Profiteer / Aspiring REI

Hey there!

After many many hours of reading the awesomeness here on BP I'm looking for someone willing to sit down and discuss the finer points of SLOs, Sub2s, and wholesaling in the great state of Washington. If you have extensive experience in any of the above niches and don't mind spending a few hours with a motivated newbie please shoot me a message, email, phone call, text, smoke signal, bat signal, emergency flare or otherwise. Thanks!

Lloyd Stanton