Sandwich Lease Option
Seller carrying a second note for their equity Many times we will buy a property and not give “cash for Equity” but give a “note for equity” and “have the seller carry a second”. I don’t like paying retail for property, and I don’t like going over 90% of comps for a sales price. Why […]
A note is a promissory note, a promise to pay a debt, evidence of a debt. A lot of people think a mortgage is a debt but it’s a security device. So is a deed of trust. To be a legal note, all you need is to identify the parties, who is paying the debt […]
Mortgage or Deed of Trust A mortgage or a deed of trust is a security device. It depends on the state that you’re in. 4 pages pdf
What is a Wrap-Around Mortgage? A wrap-around mortgage (or “wrap loan”) is a type of seller financing where the seller creates a new, larger mortgage that “wraps” around the existing underlying mortgage. The buyer makes payments to the seller, and the seller uses a portion of that money to continue making payments on the original first mortgage. […]
Use Payment Servicer My payment servicer is someone that takes a payment, and then pays others with that payment. When we do seller financing, we’re going to take the payment from the person in the property and then make sure that the mortgage payment and the taxes and insurance are paid and then any balance […]
Due on sale clause There’s a due on sale clause in a mortgage, A lot of people think it means that the lender is going to foreclose if you don’t do the right things. The lender is going to call the loan due and payable. What it means is the lender has the right to […]
“There is no due on sale jail”, this means that if you do a subject to or wrap around mortgage and do not tell the bank, it’s a civil matter, and the bank can call the loan due and payable. We use Land Trusts to be able to do subject to existing financing transactions and […]
Land Contract or Contract for Deed Buying or selling on a land contract or contract for deed This means that you put some money down, you get possession, you get Equitable Title but not legal title like a warranty deed, then you make payments over time with generally a balloon payment in the future. It […]
Like Car Loan A land contract, contract for deed, agreement for deed, these are contracts that are like a car loan. When you buy a car you put money down, you make the payments, then you get the title when you finish the loan. So these contracts are similar, you put money down, you make […]