All Forum Posts by: Zane McLaughlin

It depends on the area you buy in. A VA loan in my area will fund up to a 4 unit building.

I am looking at purchasing a Quadplex using my VA loan, and I am wondering if anyon else has done the same thing, and wouldnt mind giving me some tips.

I might have a guy. He isn't licensed, but he's pretty handy and might be a good man for the job

Okay so we have this house that the owner wants to get rid of. The house is in disrepair, but he wants this to be a seller financing deal to send money to him every month as a mortgage payment. The house is manageable and is a good price for us so the deal sounds good, but just before we meet with his lawyer and go over the terms, we learn that he doesn't want to sign the house over to an LLC, but wants me, my wife, my partner and HIS wife to sign the contract, and to keep our company name off of the contract.

This immediately sends up red flags for me. I mean, I know that he is doing his due diligence to cover himself, and I know that neither me or my partner would ever do anything to screw him over, and I know that the seller doesn't know that we wouldn't, but still something doesn't seem right.

The same names going on the contract are the same names that own the company. Only without the LLC on the contract, this opens us up to much more liability.

Am I freaking out for nothing, or am I right in feeling icky about all this?

well you don't have much time to establish credit before January. You could start by getting a credit card and only purchase gas with it, and make Certain that you make the bill payment every month. It's not much but it's a start. 

So the seller has a small mortgage payment every month to the bank for the 20% down payment, and you have the primary mortgage that you pay. Are they completely separate where you pay your half, and he pays his? Or do you have to pay together?

hi @Ray Agosto,

I think if you are using a lender, or your own money to finance the deal, then you should try and get the properties as low as you can. The lower the purchase price, the better for you. If you are doing creative financing where the seller is financing the deal, then you should be doing either full market value, or just above market value. There isn't a lot in it for the sellers in seller financing, so offering to buy the house at a higher price would be more worth it to them, and better for them in the end.

I think it all depends on what you are wanting to do.

Stay curious!

Hi @Cedric Taylor,

By deed acquisition, I am assuming your are talking about a "subject-to" deal (some areas use different terms).

If so, the chances of the owner being able to turn the deed over to you, if the house is already foreclosed on, is most likely impossible. I say "most likely" because you may be able to reverse the foreclosure if you are able to pay all of the owners foreclosure fees, and can get the house back from the bank. There is a time frame of which the owners can do this, and that time frame is based on the state you are in, and is different all over the country. If this is the route you are trying to take I would advise you to bring in another, more experienced REI that has done many of these.

If the house is in pre-foreclosure, you may be able to do a subject-to, and have the deed signed over to you, with the promise that you will make their monthly mortgage payments.

It can be tricky, but still do-able.

Hi @Chris StPeter,

A pre-foreclosure is a property that is in default of the loan (the owners stopped paying the mortgage), and the bank is either threatening to foreclose, or is in the process of foreclosing and the property will soon be up for auction.

With Zillow, I have found that the pre-foreclosure listing are old, and not up to date. If you are looking at a property that you are considering buying, make sure that it doesn't have a date that was a year or more ago. Chances are that property is already gone, and nobody updated the listing. Also, some of them list an estimated auction date. There should also be a number to call of an agent that is looking over the whole proceedings of the auction, they should be able to tell you if the house is still in pre-foreclosure, or if the house is already gone.

Hope this helps

@Taylor Frazier I have an attorney look over my contracts and make sure they are in line with the law. But for every transaction, I handle them all myself since they are all straight forward. I have an attorney look the documents over ever 6 months or so, just to keep up with changes in the laws. 

@Jose Castillo, you should have the subject to contract, and the letter of intent. The letter of intent tells the owner you intend to make a profit from the property, and that you are not using. The property for your own purposes.