All Forum Posts by: Selvin George

Hi,

My wife and I are starting out in fix and flip and I would greatly appreciate the community's suggestions for contractors who work in the SF Bay area and have helped you on your real-estate investing journey!

Thanks so much! 🙏

Cheers
Selvin

I will also add the disclaimer that I am not qualified to provide real-estate legal and tax planning advice and you should definitely consult a real estate attorney and tax specialist for your questions. What I've provided is just readily available internet advice on this topic and should not be treated as authoritative for your decision making purposes. Thanks!

I just got the feeling that Doorvest is making real-estate lenders our of real-estate investors. Some of the CoC are so low (and some of the projected appreciation is also low) that I ask myself, why wouldn't I just invest in government bonds instead.

Here's a link to the video portion that discusses that acceleration of the note due could happen:

Transcript:
... I would tell you "be careful", don't just deed them right in (to your LLC). If you have debt on your property from your name into your LLC, then you risk the bank accelerating your note i.e. you violated the due on sale clause on your mortgage and you gave them a reason to call your note due.

This poses 2 hardships:

(a) If a number of your properties notes were accelerated due now, then it's hard to refinance them quickly
(b) If you had a fixed low interest rate, then the bank will be looking for reasons to call due such notes so they can earn higher interest rates

Regarding this statement: "If you are paying, the servicer doesn't really care.", I heard on Clint Coons Esq Youtube channel that sometimes the lenders get audited by their insurers and if it is found that title is not being held in their name, then the lender will call due all loans made out to you. Although you're probably right, this maybe happening only rarely, but make sure that if it does happen, it doesn't end you real estate investing journey. Set yourself up for success! =) Best luck