It is not just a document. The owner is selling you an assignment. You need to read the original paperwork the people who took out the loan signed. You will not have to produce any specific documents. You will need to make sure the property and the existing mortgage is right.
My suggestion, get your name on title and use your name to finance the property then deed equitable interest in the property to the LLC after the loan is funded.(Separate Agreement) If the Due on Sale clause bothers you move the property through a trust.[ Edited by GoBelly on Date 11/03/2005 ]
If your name does not appear on title I would not loan to you. What lender would? Also lender will actually be a first mortgage and I would want my name on the deed. Make sure the property is worth the expense...150000, what are your interests a 50/50 split with partner what is the value of property after rehab, you flipping it renting it or what.
Great info guys! I ran into the same situation..now i know the best way to handle it.....
Another question if anyone can answer:
I have a two member LLC with a family member, a 3rd person finds a deal and wants us to help him with it. How do we go about purchasing now with a 3rd person entering the picture as far as a split is concerned? Since its a temporary partnership wtih the 3rd person, i wouldnt want to add him to my current LLC. Suggestions?
Great info guys! I ran into the same situation..now i know the best way to handle it.....
Another question if anyone can answer:
I have a two member LLC with a family member, a 3rd person finds a deal and wants us to help him with it. How do we go about purchasing now with a 3rd person entering the picture as far as a split is concerned? Since its a temporary partnership wtih the 3rd person, i wouldnt want to add him to my current LLC. Suggestions?
Without writing a novel on this here are a few pointers.
At least 5% down
Interest rates in the 8-10% range
30 yr term with no balloon
If your note is structured well you can sell your note at closing with no seasoning
Payors credit 600 or higher
Good DTI with some cash reserves
I buy a property with cash around $50,000
Find a renter, then sell the note for $50,000 for 10% interest, 10 year term. The payment for the note would be around $670 a month, and I would still get a small cash flow and control of the property.
I have bought notes before as an investment, but I have never tried to sell one.
Do you recommend any books or websites that deal with selling notes, or that might handle the situation I described above?
Sounds like you might be talking about a wrap around mortgage. You buy a place on a note and then you bring another buyer and you set a higher asking price, higher interest, thus creating a wrap around mortgage. This type of note is attractive but usually the first mortgage (you being the payor to your seller) has to paid off first and then you sell your note that you have with your buyer for a discount.
Thanks....I sure wanted to find them for free.
Use a title company and have them draw up the docs, while your in escrow make sure to get title insurance.
Is the document anything special? Do you have a sample? I will ask the title company.[ Edited by Gerald2005 on Date 12/09/2005 ]
It is not just a document. The owner is selling you an assignment. You need to read the original paperwork the people who took out the loan signed. You will not have to produce any specific documents. You will need to make sure the property and the existing mortgage is right.
Laurie
[addsig]
Thanks
My suggestion, get your name on title and use your name to finance the property then deed equitable interest in the property to the LLC after the loan is funded.(Separate Agreement) If the Due on Sale clause bothers you move the property through a trust.[ Edited by GoBelly on Date 11/03/2005 ]
If your name does not appear on title I would not loan to you. What lender would? Also lender will actually be a first mortgage and I would want my name on the deed. Make sure the property is worth the expense...150000, what are your interests a 50/50 split with partner what is the value of property after rehab, you flipping it renting it or what.
Great info guys! I ran into the same situation..now i know the best way to handle it.....
Another question if anyone can answer:
I have a two member LLC with a family member, a 3rd person finds a deal and wants us to help him with it. How do we go about purchasing now with a 3rd person entering the picture as far as a split is concerned? Since its a temporary partnership wtih the 3rd person, i wouldnt want to add him to my current LLC. Suggestions?
Great info guys! I ran into the same situation..now i know the best way to handle it.....
Another question if anyone can answer:
I have a two member LLC with a family member, a 3rd person finds a deal and wants us to help him with it. How do we go about purchasing now with a 3rd person entering the picture as far as a split is concerned? Since its a temporary partnership wtih the 3rd person, i wouldnt want to add him to my current LLC. Suggestions?
HI,
Thanks for the reply...
Payors credit is good 700+
The LTV is around 90%
Would a higher interest rate, or shorter term counteract the high LTV?
Without writing a novel on this here are a few pointers.
At least 5% down
Interest rates in the 8-10% range
30 yr term with no balloon
If your note is structured well you can sell your note at closing with no seasoning
Payors credit 600 or higher
Good DTI with some cash reserves
Nate-WI
Thanks
Can you answer this senario?
I buy a property with cash around $50,000
Find a renter, then sell the note for $50,000 for 10% interest, 10 year term. The payment for the note would be around $670 a month, and I would still get a small cash flow and control of the property.
I have bought notes before as an investment, but I have never tried to sell one.
Do you recommend any books or websites that deal with selling notes, or that might handle the situation I described above?
I think you missed alot of steps dungbeatle. Funny name. You buy a house for 50K and sell the note for 50K? What am I missing here?
Nate-WI
Dungbeatle,
Sounds like you might be talking about a wrap around mortgage. You buy a place on a note and then you bring another buyer and you set a higher asking price, higher interest, thus creating a wrap around mortgage. This type of note is attractive but usually the first mortgage (you being the payor to your seller) has to paid off first and then you sell your note that you have with your buyer for a discount.
Nate-WI