All Forum Posts by: Ari Bauer

So, a client of mine bought a property with a conventional mortgage and Deeded the property into an irrevocable trust Now, after a number of years the lender caught on and is calling the loan. They did offer to allow him to transfer the deed back into his name and keep the loan, however due to his circumstances that is not possible. I understand that most lenders will not loan on a property in an irrevocable trust, and I am looking for help in finding one.

Does anyone have any ideas or suggestions to help him avoid the inevitable foreclosure if he doesn't payoff the loan?

That is called brokering real estate without a license and is illegal.

If you would like to broker real estate, take the licensing course (believe in NYC, it's 75 hours) and become an agent.

@sharong

It is impossible to have a loan term longer than the amortization period, as the loan would already be paid off once the amortization period is complete.

In your example above, the loan would be paid off in 30 years.

@Tommy Vincent

Your agent is wrong, there are lenders that would finance deals under 750k. Speak to a few banks in your area or a commercial mortgage broker for a better idea of the financing that you can procure. Can recommend one if you'd like.

@michael graystone

A good idea if you are looking to buy out of state but don't have much experience may be to invest in a syndication with an experienced sponsor in value-add deals. 

This would allow you to have an experienced operator who knows the market run the deal and you may receive higher cash flow in addition to forced appreciation.

Another benefit would be that you will be investing in a much larger 2-40 million dollar and get the economies of scale that come along with of property of that size.

@Chris Townley

Yea,  definitely try to negotiate to lower the price.

Question about your mortgage: What amortization are you using? Is the 5% rate an actual quote from a lender and did you try to shop around for a better rate?

@Chris Townley

One thing that looks off to me is your repairs and maintenance and capex numbers.

Most investors that I know budget around $500-750 for repairs and maintenance and capex per unit while your budget shows $2,400 per unit. 

Of course, if your your research indicates that $2,400 a year in R&M and capex per unit is what you can expect, then definitely stick to those numbers.

Hi William,

Yes you can, ask your real estate agent about condos.

He/she should be able to explain to you how they work.

If you'd like to talk, feel free to pm me.

Hi David, I'd like to discuss this deal with you. Please PM me your phone number and a good time to call you. Thanks.

@johnwulf

Calculate how much your return on your equity is by dividing your cash flow 6,000 by your equity 130,000 to see what your return on equity is 4.61%.

If you pay off the loan on your property you will be saving under 4%.

If you are only going to be saving 4% on the loan and you would make 4.6% by keeping the house the logical thing would be to keep the house or to use the money to purchase an investment with a cash on cash return greater than 4.6%.

Do some research in your area to figure out if you can get a higher return for your money by using the $130,000 as a down payment on two or more houses and based on your research, go with the option that makes the most sense.