All Forum Posts by: Account Closed

Quote from @Orhi Tahi:

Hey all,

What are the best ways to assume someones loan ?

For example, if someone is at foreclosure can I assume that loan if its FHA or VA ?

What other creative options do you have in mind to find assumable loan ?

Orhi

Assuming someone's loan means you have applied to the lender and have been approved. Buying the property on Subject To simply means you have taken over the loan and the lender is not involved in that process.

A lot of new people confuse the two, but they are very different. Some people who mentor don’t actually understand the differences. Oh, and I’d ask about any fees they ca n waive.

We teach how to take over a property Subject To. If your questions are actually about just taking over the loan without involving the lender, I can answer those questions. However, if you have come across a seller who has an assumable loan, I'd direct you to talk to the lender to see what requirements they have.

Quote from @Kelly O'Keefe:

Hey Mike, sorry for your loss and that the family is going through this. I agree this can get complicated quickly. Did your dad leave a will for this process?

I think your question was meant for Dan.

Quote from @Stephen Ironside:

Hi everyone I am a new investor in the DFW area and would love to connect with an experienced investor as a mentor. I dabbled a little back in 2015 and bought a LTR which I still hold. I am looking to increase my rental portfolio with a goal of 4 rentals this year ( is this to ambitious a goal) and maybe a couple of flips to add cash flow. I run a successful commercial construction company as my primary business but looking to transition out into the real estate market. Look forward to connecting and thanks in advance.

Stephen 

There are 3 things you need to start with.

1. Figure out what kind of investing you want to do.
2. Figure out how much capital you have to work with
3. Figure out where you want to invest.

If you are a self starter, dig into the archives of Bigger Pockets and other resources. If you need a little guidance and saving time is important to you, get a coach. Obviously you don’t know what you don’t know and the only way to find out is either by experience or by teaching.

Some people say they "would have saved the last year and a half" if they'd had someone to direct them". Others have said, they are “researchers” and they did it all on their own and are completely happy about it.

It’s probably useful to ask specific people what their experience has been and go from there.

I'd be happy to answer more questions per Bigger Pockets rules. You have to contact us, we can't directly contact you. So pick someone, contact them, get to know them and pick their brain.

Quote from @Liam Naughton:

A pipe burst at one of my properties due to the cold weather.

I called around to get it fixed and ended up going with a referral from someone at my brokerage.

Houses are expensive, then they break.

Quote from @Amador Abreu:

Thanks John, I did get insurance but the insurance needs inspection and I don't have access to the house. Law enforcement will be present and I will be paying the hourly rate for them to stick around for a bit. My concern is what he will do when he gets released, if the scenario plays as is being painted.
The illegal occupier believes the system is broken, that he has rights over the land as a human being and told me he is willing to die for these rights.
The police said they will have backup as they are concerned with the situation.

I've had a few of these. It isn't the eviction you should worry about. You will have plenty of people there if he does anything, which he probably will be resistant.

However, for the following 6 months or so, he will be plotting his next move. That could include things like bricks through windows, climbing back into and occupying the property, coming by and starting a fight. If he has any friends they may accompany him.

If he is a drug dealer you will have random people stopping by. If you are rehabbing, don't leave anything of value in the property. I'd start by painting the exterior of the house a different color so it doesn't look as familiar and I’d refresh the front landscape. Oddly enough, people such as this don’t like nice things and tend to avoid them. It’s outside of their comfort zone.

I use a Swan camera system at strategic points on the property to see who is coming and going and a couple of cameras inside. The police here allow recordings to be used to arrest and charge someone.

They usually "move on" after a few months especially if all of their belongings, cars, tools, parts are move somewhere else they can access.

Quote from @Lori Edelman:

Doubled? Our home is in Northern NJ (about 7 minutes from NYC). This is not an emerging or undervalued area. We paid $650k and now it’s worth about $850k-$900k. It’s a highly sought after, stable area, with lots of competition for housing.

If your house sells for $900k your real estate fees at 5% would be $45,000. There are other costs, but that is a big one. If you lived in the property for 2 of the last 5 years, you get a tax break on $500k of appreciation and pay gains on the rest. To buy a new property can be $15k based on loan origination fees, title, escrow, inspections, appraisal and so on pus the investment of time to find the correct property. Don't shoot me, "I'm only the pianoman". I just run numbers.

Quote from @Dan Bardar:

My dad passed away, but apparently when he refinanced the mortgage, only he was on the loan. Now my mom is living there, and she is making the payments of the remaining balance on mortgage. When the bill comes it's in the estate of my dad's name. Is there a detriment to keeping it this way and not refinancing it into her name? I don't know that she would be able to qualify on her own for the loan. She also can barely make the payments as it is. 

My second question would be if I was willing to make the payments for the remainder of the loan so she didn't have to pay it, what kind of legal docs would we need written up to make sure I would get the house when she passes. This would be a way for her to live there for the rest of her life and not have to worry about a mortgage.

There are three issues. Ownership, name on the mortgage, inheritance.

It gets complicated quickly. But,
1. Find out if the title is in her name only (I hope it is), you may have to probate
That is much different than the loan being in her name. No need to refinance if they continue to take payments.
2. You can make the payments for your mom and if you are the sole heir, it's easy to have her talk to a probate attorney and explain the circumstances and set things up properly
3. If she is going to live out her days there, it is "tax wise" better for you to inherit the property than for her to change ownership to you while living (it's a thing called a "stepped up basis" (look it up).

Quote from @Michael Plaks:

@Juan Figueroa

LLCs do not create tax benefits, and in fact can sometimes create tax headaches. It's often good to create an LLC when working with a partner - but for legal reasons, not tax reasons. If you think that your LLC will cut your taxes, you have been duped by podcasters and bloggers.

What you need help with is not finding some mythical hidden tax benefits which do not exist. You need help figuring out whether you have a partnership for tax purposes and how to operate your LLC to minimize problems and stay in compliance.

Tax benefits come from how you run your business, not from LLCs, with very rare exceptions.

If you noticed, my colleagues are wording their responses carefully. This is because we are NOT allowed to offer you our services, publicly or privately. You need to find people who you want to work with yourself and initiate the contact yourself, by BiggerPockets rules.

Your comment: "If you noticed, my colleagues are wording their responses carefully. This is because we are NOT allowed to offer you our services, publicly or privately. You need to find people who you want to work with yourself and initiate the contact yourself, by BiggerPockets rules."

Well crafted. Michael
However, we are able to say, "@Michael Plaks: is very knowledgeable and I would recommend him whole heartedly, as long as he blushes at the compliment." 

Just kidding about the blushes. Competent tax accounts with boxing gloves don't blush, right @Mike Tyson?

Quote from @Tony Chiha:

Hello gurus!

I have a chance to buy a house at lower than market value, value about 1.2 I can buy it for 1. how can I benefit from this regarding down payment, or lowering the mortgage or other benefits? take it easy I am a complete beginner. Thanks

If you don't have the money to pay cash, you would use Creative Financing, a Bank or Hard Money. A bank will lend let's say 85% of the lower of the value of the property or of the purchase price, whichever is lower. Hard Money will probably lend 65% to 70% of the value, depending on the hard money lender. Creative Finance is whatever you two agree to.

Quote from @Brandon Durant:

Looking to purchase our first home... have been recommended to waive inspections if we're serious in having an offer accepted (finally)

My question: Would it make sense to waive inspection in this situation and have an experienced builder come out to look at the property at the next open house? Really don't want to get stuck with problems that I cant see with my naked eye for a first home. 

Thank you in advance!

Just because something has been recommended doesn't mean it's good advice. If I recommended you drink 64 ounces of prune juice, is that good advice? Well, it won't kill you, but you will remember the experience for a long time.

What are they hiding that they don't want an inspection?