All Forum Posts by: Herndon Davis

They should've been titled the owner when it was financed with the deed in their name and the original owner holding a lien against the property until it is paid off just like it is done with a normal bank financing situation.

This is a often the problem with Private seller financing. A lot of times the owner of the property does not want to sign over the deed until the property is fully paid off  as leverage.

But lien is just as strong. NEVER go into a seller finance situation without getting the deed in your name.

In your wholesale case you will need to look at the contracts that were signed between the original seller  and the person who you are buying it from.

You can still do a double closing but you need a title company to sort through the mess of paperwork to make sure it's done correctly.

Yes, its called Bridge Loans and it will cost you a pretty penny so you'd be better be sure this property is worth it.  Bridge Funding is high interest rate, short term, meant to quickly buy a property and hold it until you can get long term financing.  It still may not be near as quick as cash especially if someone can wire the funds immediately.  BUT I'd go the Bridge Funding route.

 If I understand correctly your client is buying a commercial building and you are being included in the interviewing of existing tenants.

Ask the basics about business, typical working hours, profile of their clients, heaviest time of day of business, and ask for  a list of things they like and dislike about the building, its existing services, property management and overall location.

Mind you this will be all one-sided. They will obviously paint themselves as Saints. It's up to to you to do surveillance online and offline to research about each tenant.  Drive by the building at night, on the weekends, during the day.  Send in Secret Shoppers to get an idea of customer service.  

All of this PLUS finding out from existing property management company their rental payment history, wear-and-tear on facilities as evident by maintenance calls issues.

Let me know how it turns out!

1-Take control of the marketing. If you PM doesn't like, tough. Replace him
2-Consider a small reduction in price
3-Old fashion techniques like putting up For Rent signs around the neighborhood work well.
4. Craigslist definitely.  I wouldn't pay for Facebook adds even if directly targeted.  You should post, have friends post, have local schools post and send link directly to your Craigslist posting.

You can indeed get a commercial residential, 5+ units loan for 30 year term.  Those loan products do exist.

 You can actually loans finance Investor rental property one of 3 Major ways:

1-Fannie Mae/Freddie Mac Conventional Lending, the most restrictive of all funding
2-Non-QM Lending (Non Qualified Mortgage) Residential lending 1-4 units (the most lenient type of funding) with only slightly higher rates
3- Non-QM lending Commercial Lending, 5+ Units ( YES you can get 30 year fixed mortgage)

Depending on your goals your choice could be any of the 3.  I'll PM to give you more insight.

I will PM you to see if I can be of assistance

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Have a Mortgage Broker send you an email stating they've identified Non-QM (Non-Qualified Mortgage) Lenders willing to make you Purchase+ Rehab Loan based upon the information you initially provided them. Have them further state that "this approval is tentative based upon verification of the specifics of the deal such as repair costs, ARV, your personal credit and liquidity.

Forward a copy of this email to the Seller's Agent. You should have your agent clearly explain to the Seller's agent that because of the state of the property is in you can not get Conventional Financing and that this is the best you can do. And if the Seller still doesn't budge then move on or pay cash!

1- Continue to pay your student loans as you normally do.

2- Invest in real estate through a Legal Entity using Business Credit to fund your initial down payment and using a Non-QM (Non-Qualified Mortgage) loan product.

3-This way you it keeps your personal credit and liability separate from your business credit and liability. Also your personal debt ratio is NOT calculated as part of the approval process under Non-QM guidelines, just the asset's ability to generate net income or appraise at projected ARV. So your student loan debt has no bearing on your ability to get the real estate investor loan.

Hope this helps.  PM if you have questions!