Do you now have to be a licensed mortgage loan office to seller finance a property? NO but it's a good idea.
Brett, HMLs are not creative financing solutions, they are asset based lenders loaning at a lower LTV than conventional at much higher rates for short terms, generally less than a year. In fact, lending for 12 months may present problems to refinance and close a new loan as the usual requirement is 12 months, that gives no time to apply, process and close a new loan without being in default and lenders usually don't refinance loans in default, so it's pretty thin dealings. Many of the methods suggested are illegal or involve fraudulent claims in a transaction. There are significant new regulations now, effective in less than a month that further restrict seller financing. Search here for threads on the SAFE Act and Dodd Frank.
the reasons banks choose to or not to call a note nationally, but they do call them due, especially larger banks. There are ways to win over a lien holder and even defend a sale initially, but there are no methods that will keep them from exercising the right to do so if there is a violation. Hang in there, all this will become clearer, :)
3. one article I read suggested getting a HML on your current investment and buying another. Do HMLs do this? What LTV would they require? I recently bought a property with 20% down and even with a HML in second position it would still produce a strong CF depending on the terms. This is the article, it had tons of ideas but some of the strategies weren't explained very well IMO.
Jon Holdman, Flying Phoenix LLC
2. What creative methods are there, and Nike Air Max 90 Ultra Moire Volt
Many Real Estate investors think that the regulation called The Dodd Frank Act which takes effect January 10th, 2014 will eliminate Creative/seller financing as we know it.
Installment sales are old stuff and getting harder to use due to the new regulations. One that is basically dead on arrival is the old Contract For Deed or Land Contract, not so much from a financing point of view but due to the use of a default provision in these contracts that is now seen as circumventing Nike Air Max 90 Total Crimson foreclosure laws.
Next, creative dealing is like running. Most new to RE look to creative ways as if there is some magic bullet that gets them running before the can crawl or walk. You can not design a creative transaction until you are fully aware of how conventional transactions are accomplished.
Creative financing is the creative use of assets and cash flow to finance or facilitate a transaction. You need assets or cash flow, or both, to employ financial leverage techniques to accomplish truly creative financed transactions. It can include using other people's money, a basis for many of the methods gurus push, but in reality, you need a great deal of knowledge to get most folks who have money to trust you with their money.
But the LTVs are going to be like 75%. And there are costs for the loan. So you have to have significant equity. A property you recently bought with 20% down has very little equity. None of which you can extract. If you've done major improvements, wait a year and perhaps a new appraisal will show enough equity to justify the costs of a refi.
the target of the new regulations.
Brett, as I mentioned, commercial transactions are exempt. The number of exempt transactions are state specific. Search the due on sale, the number that were called due and/or forced sale are discussed in the Midwest and Nike Air Max 90 Ultra Moire Holographic Edition
Finance is a separate profession and industry, most new folks in RE seem to think financing is a sub part to RE, it's not, RE is a sub part in the finance industry. Those who sell methods or systems have no secrets, nor have I seen any of these guru types having or explaining financing RE that is new, it's always based on conventional methods or transactions that have been used for decades. Some will suggest combinations of methods that are really old ideas but present the way as being new or revolutionary for their marketing spin of a product. These people are not financial wizards.
Again, merry Christmas and good luck in your 2014 business ventures!!
Be sure you're not falling into the "cash flow = rent PITI" myth.
Is Creative/seller financing dead because of Dodd Frank? NO
Another basic is the buying Subject To an existing mortgage or Sub 2 deals. These too can fall under the new financing regulations selling to owner occupants, Nike Air Max 90 Womens Green
The last two may be used in a commercial lending situation, between investors, but any installment deal also has issues with respect to the "due on sale" clause in mortgages, the lender may call their mortgage due in full if a sale has occurred.
I'll stop here, read, learn the basics, learn conventional financing requirements as those will be the target to accomplish any creative transaction. There is no short cut, there is nothing new in RE except more regulations, learn the rules and stay out of trouble. :)
If you actually have equity in a property, you can refinance and get it out. I've seen a few posts lately saying a few lenders are doing LOCs on investment property, but that's still rare. By the way, requests for specific lenders have to be posted in the Marketplace.
One strategy is to buy and rehab with an HML and then refinance after owning it for a year.
Few, if any, HMLs are going to accept a loan in second position. And their rates are going to be very high.
Another is the Lease with an Option to buy, still viable, but the financing regulations play on financing the option price or any payments that are credited to the purchase price.
are there books you could recommend which focus on how creative financing and HM strategies for buy and hold investors?
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