All Forum Posts by: Patrick Sears

Wow. That is totally ridiculous.  People are dirt.  Funny how none of these shenanigans are covered under Dodd-Frank...

Never understood why anyone would ever get into rentals in places like NYC, Seattle, California, Chicago, DC, etc...Landlording is tough enough without having to deal with the ridiculous SJW attitudes of the politicians in these areas.  Sorry, but tenants ARE NOT entitled to the same rights as property owners.  Until they figure that out, less affordable housing will become available, and more and more people will be taking up residence in tents along their city streets...

Not sure what your situation is (retiring, need money NOW, etc...) but if the area is that nice, you may just want to hold on to it as long as possible.  Probably the only thing in that area still cash flowing, and the appreciation sounds all but assured long term...

You didn't give any particulars...

What is the age and condition?  

Why do you want to switch it out for a new one?  

Are you living in it yourself or are your going to rent it out?  

What is the land/home together worth currently, and what would it be worth with the new home on it?

Answers to these would help you decide what to do with it and how much this will cost you/make you :-)

Hello,

Anyone have experience with getting your MLO and lender licenses, then becoming a correspondent lender with a warehouse lender?

This means originating mortgage loans under your lending businesses name, then selling the note to the warehouse lender to get your money back and do it again. Different warehouse lenders have different criteria they require for the loans they will purchase from you (i.e., min 620 FICO for the borrower, 5% + down, etc... Similar to banks selling qualifying mortgages to Fannie Mae)

Wondering if any warehouse lenders might be interested in buying loans I would originate on properties I was also flipping myself? Would be a lot better terms than selling paper at the typical big discount to private note buyers...

Could also be a very scalable business (just ask Movement Mortgage...) and higher margin than just brokering mortgages.

Thoughts?

Hello,

Anyone have experience with getting your MLO and lender licenses, then becoming a correspondent lender with a warehouse lender?

This means originating mortgage loans under your lending businesses name, then selling the note to the warehouse lender to get your money back and do it again.  Different warehouse lenders have different criteria they require for the loans they will purchase from you (i.e., min 620 FICO for the borrower, 5% + down, etc... Similar to banks selling qualifying mortgages to Fannie Mae)

Wondering if any warehouse lenders might be interested in buying loans I would originate on properties I was also flipping myself?  Would be a lot better terms than selling paper at the typical big discount to private note buyers...

Could also be a very scalable business (just ask Movement Mortgage...) and higher margin than just brokering mortgages.

Thoughts?

Curt, how is your business model of flipping DW mobile homes via "rent to own" any different as a practical matter than the straight seller financing model that Mitch Stephens is touting? (Assuming you are still doing that)

I can tell you the IRS is wise to the "rent to own" thing and will treat it exactly the same as a straight seller finance, unless you do it exactly right (which takes away all of the traditional financial benefits of lease optioning).

So will Dodd Frank.

Even holding for 1 year then selling will not get around the installment sales rule if the IRS can show in tax court that your INTENT was to circumvent the law to avoid dealer status.

If you are still selling your dw on land deals on rent to own, where are you finding the funding to pull your cash out of the deal to reinvest in the next property (i.e. "BRRRR")? I cannot find ANYONE that wants to finance or cash out refi on investor mobile home deals.

It's really quite ridiculous, actually.

@Michael Ohara that is an excellent point and I never thought of it that way.  I wonder is there is case law on that, since I can see that being argued in court by a savvy defense lawyer.

Hello,

When offering to seller finance your own fix and flips to the public, everyone talks about Dodd-Frank and the need to use a licensed MLO to stay compliant. I started looking into how to become an MLO myself in Virginia. Upon reading all of the definitions and licensing requirements, it sounds as if I would actually be a "lender" and need a lender license, not a MLO license. Or maybe I would need both? An "originator" discusses terms and verifies borrower ability to repay, etc.. but the law says nothing about them actually funding the deal. That's what a lender does. When you seek out a MLO to do the loan origination for your seller financing, they are doing what the law says they should do-discuss terms and verify ability to repay. YOU however, are offering the financing-not them. You are operating as a lender and therefore should be licensed, right?

Does anyone know exactly what it takes to become a seller financier as a business for your own flips while staying legal? Especially in Virginia?

Thanks!

Hello,

When offering to seller finance your own fix and flips to the public, everyone talks about Dodd-Frank and the need to use a licensed MLO to stay compliant.  I started looking into how to become an MLO myself in Virginia.  Upon reading all of the definitions and licensing requirements, it sounds as if I would actually be a "lender" and need a lender license, not a MLO license.  Or maybe I would need both?  An "originator" discusses terms and verifies borrower ability to repay, etc.. but the law says nothing about them actually funding the deal.  That's what a lender does.  When you seek out a MLO to do the loan origination for your seller financing, they are doing what the law says they should do-discuss terms and verify ability to repay.  YOU however, are offering the financing-not them.  You are operating as a lender and therefore should be licensed, right?

Does anyone know exactly what it takes to become a seller financier as a business for your own flips while staying legal?  Especially in Virginia?

Thanks!