All Forum Posts by: Neal Weinstein

Hi all,

Thanks for some good feedback, and some typical BS.  I am just trying to go through the pros/cons of doing this loan.  I can afford to buy it cash if the loan is accelerated, that is not a problem.  The seller is someone my realtor knows, so he is not a totally unknown entity.  Basically, he bought a house outside his normal area and now doesn't want to deal with it.  I am paying him a fair price, and he is cool with me taking the loan to use the rate.  

I will be talking through this with a lawyer next if this seems feasible. Otherwise, I will just buy it with my lender. Good point to vet the LLC, and I am confirming he closed in LLC as well.

@Caroline Gerardo Good point on the tax filings. That is something I need to address. As far as the LLC - Loan closed in the LLC originally (which was created for this home), so no issues there. Seller is an investor who purchased in the LLC two years ago, I am buying as an investment as well.

Regarding insurance, why won't it match terms?  If the insured is the LLC it should be ok, and if he is on with the LLC I just need to keep him on in a secondary capacity.  

I can qualify quickly if the loan is called, or pay cash. Why would I need him to be alive and able to notarize? If I am the rightful owner of the LLC and go to refi, I assume the worst thing the lender could do is call the loan.

Agreed on tax liens.  I plan to have a title report pulled as well.  

Thanks for the reply Caroline.

@Greg Downey When/if I do refi or sell will there actually be any issue? I mean, if they call the loan due, I am already prepared for that. And the ownership should be in the paperwork signed showing me purchasing the LLC from the seller (and with the state). They obviously won't like that, but it should be legal and binding.
I just need to figure out any additonal docs that I need to be signed outside of transferring the LLC to my ownership in order to further protect my position.  

@Greg Downey in this scenario there wouldn't be transfer of title. The property is already owned by the seller in an LLC. There would be a membership interest assignment of that LLC to me, which doesn't even involve title company. I would do that with an attorney. Insurance in the LLC name, and utilities paid by servicing company. Just trying to see what are the risks in this scenario.

Thanks for the reply Greg!  Subto information is all over the map.  And I agree with you that there is risk.  Even my title company was telling me how serious the auditing is right now with lenders. 

@Account Closed Sorry - Make him whole I mean I will pay him for the property value between his mortgage and the sale price.  There is no other benefit for him, and for me it's just the rate.  

Is there any issues with that transfer that I should be aware of? It just seems like an easy way to transition the loan, almost too easy. But I feel like there could be some underlying thing I could be missing. He signs the purchase agreement for the house subto, and with that transfers ownership of his LLC.

Thanks

I am looking to purchase an investment property from another investor strictly for the rate. I will make him whole, and I will take the house subto. He currently owns the house in an LLC. If I have him put the insurance into the LLC name and then sign the LLC over the me can this keep the lender from seeing what is going on? Is there anything I am missing? I really appreciate any input.

Thanks

Hey all, first time posting here on BP.  I am embarking on a rehab project which I will rent out after rehab is complete.  My question is on the initial clean out of the property.   The prior owner was a hoarder  and will need to be cleaned out with hazmat gear.  Cost estimate is around 6500.  Can I deduct that off my taxes as opposed to capitalizing it since the cost is essentially cleaning?  Any other tips on individual items I can write off during a rehab?  Tree removal maybe?  Figure it’s worth asking.  

Thanks!!

Neal