All Forum Posts by: Ellis San Jose

 Buyers aren't necessarily interest rate shopping they are shopping for affordable payments. Also, if you have a below market interest note, if you wanted to sell that note for any reason in the future for liquidity you would be affecting the value of that note negatively. You can get very creative with structure to make it a win win.

I would consider asking a slightly higher interest rate than market, because you are offering financing for a buyer that may not qualify for a traditional loan. My goal is to offer an affordable monthly payment that competes with renting a comparable property and offers a benefit to paying a bit more to "own".  The amount of downpayment requirement insures buyers having "skin in the game".  I would underwrite buyers based on stability of income, financial payment history & ability to pay. Better yet have them underwritten by a licensed 3rd party.

Unless you are a seasoned real estate investor with professional title searching skills, I wouldn't do this. There can be some liens that you may not be aware of. Using escrow company & title insurance will protect you from an unwanted surprise.

I agree that many transactions shouldn't be done simply because you can.

However, out of curiosity, if you had the opportunity to buy a $hit property with golden financing & then immediately sell the $hit property but keep the golden financing & transfer the financing to a great property would you consider it?

You are making erroneous assumptions. What’s that saying about ASSume? Have you ever thought about getting 0% on one property and substituting the collateral to a great property? Btw one of the transactions was on an $800k house in an A area. It had title problems that I fixed and it needed $100k rehab. I now have $300k+ equity plus positive cash flow. Ted Lasso suggests that we be curious instead of judgmental.

1) Research Zoning of similar property

2) Do search with same zoning criteria with propertyradar or have title company give you a list.

3) Possibly filter by satellite photos to eliminate undesirable topography.

1)Purchasing distressed property with seller financing with substitution of collateral clause.

2) Wholesale property as-is, then move favorable seller financing to better quality property keeper at below market rate & favorable terms.

"Good deal" is very subjective. more accurate is "Good deal for you".  What are the alternative choices if you don't pursue this?

What are the terms? As-is current value ?

https://www.californiamortgageassociation.org/news-articles/article/senate-bill-1079-californias-new-foreclosure-and-post-foreclosure-process/#:~:text=New%20Civil%20Code%20section%202924m,to%20the%20prospective%20owner%2Doccupant.

This law was poorly written.