[Hal Cranmer]

Hal Cranmer

I know a couple who are looking to purchase a single family home but don’t have the greatest credit. They have a house in mind in the Minneapolis area that they would purchase for $165K. They can put $100,000 down and would finance the rest ($65K) at 7-8% on a Contract for Deed. The lender would be in first position.

They are owner occupants too, so I’m not sure how all the Dodd Frank/SAFE act stuff would apply.

Anyone have any thoughts on this? I have a lot of funds tied up right now, so I am looking to find someone else who might be interested. Or are there any other creative ways to make this work? Thanks.

[Robert McWhirter]

Robert McWhirter

HC,
I believe anytime you are dealing with a buyer that will be an owner-occupant the Dodd-Frank rules will apply.
It’s fantastic that they can put up 60% equity for the purchase. Do you know any mortgage brokers that would qualify
them and do all the paperwork for you? Are you flipping this house or just putting a shout out to investors?

[Hal Cranmer]

Hal Cranmer

Mactrustee. I figured the DF rules would apply, but thanks for reinforcing it. I am flipping a house, building a house, selling one of my rental properties, and trying to 1031 the sale into an assisted living facility right now. So I just can’t take on anything more – either financially or time wise.

I’m just putting a shout out to other investors, in case someone knows someone who would be interested.

Thanks

[Hal Cranmer]

Hal Cranmer

Please ignore this post. Having computer issues and can’t delete it.

[DON WEDE]

DON WEDE

Don’t have to worry about Dodd Frank. Have the seller carry back back the instrument (note, mtg., contract) and sell the instrument for cash for the seller of the house.
Don Wede

[Hal Cranmer]

Hal Cranmer

Thanks Don. My big question is where do I sell the note for the seller? Where should we advertise the note?

[DON WEDE]

DON WEDE

I would buy it at a small discount. My guess is dozens of people on CFD would. Just have to have a good package put together to document the need information on the deal.
Don Wede

[Hal Cranmer]

Hal Cranmer

Thanks again Don. Is there an example of what kind of package you would be looking for? I’ve never done this before. Basically I’m trying to help a friend of a friend out. I could put you in touch with the realtor trying to broker this for answers to questions.

[Hal Cranmer]

Hal Cranmer

I have to apologize. The person who told me about the deal had it backwards. I talked to the realtor this morning. They can put down $65K, and need $100 in financing. Still a pretty healthy down payment. The realtor can send over a PA or anything else anyone needs. Thanks.

[DON WEDE]

DON WEDE

I will ask Jackie if it is ok to add to the file vault a “Note Buying Checklist”. Mike Meeker once taught a Note buying course back in the 80s. You do a complete package on the deal just as if it was an origination like a mortgage broker would do. You treat it the same way. The better your package the more likely a note buyer will look at it. So this is both an art and a science. I would be interested in the note. Don Wede, [email protected] 815-252-3808.
Don Wede

[Hal Cranmer]

Hal Cranmer

Thanks Don. Would it help if I sent you the PA to start with? Maybe the appraisal on the property too?

[Jackie Lange]

Jackie Lange

Don Wede shared some note buying/selling paperwork. I just added it to the File Vault. Look for the section titled NOTES highlighted in yellow

Thanks for the share don!