I have a suburban house that has tenants that want to stay indefinitely. I don't have any desire to own rental property. Besides listing myself where the buyers would likely want to live there, is there a way to find a company looking to acquire rental assets that wants the existing tenants?

MaxPower said:

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I have a suburban house that has tenants that want to stay indefinitely. I don't have any desire to own rental property. Besides listing myself where the buyers would likely want to live there, is there a way to find a company looking to acquire rental assets that wants the existing tenants?

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What location/subdivision?

Location, potential asking price/sales price, and monthly rent price are all factors. Also, if rent price versus sales price checks out then sign them to a 12 month lease, like 8/1 thru 7/31. Lease conveys with property purchase so no worries about them being kicked out. If they want to stay longer after that, that's between new owner and them and rent price increases.

Instead of the MLS, I'll do you one better. Seller financing where you will get interest on the deal for years...you will be able to "wash your hands" of the property and the tenant, while taking advantage of the financing like mortgage lender.

Why not earn 5% annually for once owning something you sold years ago?

And the big risk with doing wraparound financing is that the lender may call your note after they get tired of only making 2.5%. Lots of people here warning against doing that unless you have the cash to pay off the note within 30 days if you get busted.

Red Pear Realty said:

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And the big risk with doing wraparound financing is that the lender may call your note after they get tired of only making 2.5%. Lots of people here warning against doing that unless you have the cash to pay off the note within 30 days if you get busted.

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Ah yes, the seldom exercised "due on sale clause". Banks are totally in the business of foreclosing on a mortgage that is faithfully being paid and chancing not recouping their investment because of a private sale.

Yes 90% of RE purchases on via the MLS, and as someone who is fully dependent on dealflow, it would be wise for you to "stay on there," especially because you pay to have MLS access. The other 10% are legit and keep humming along. But it's an arena where you don't really need agents, so it's perceived as a threat to your bottomline.

Let's just be upfront with Max, the OP, I want to purchase the RE and find a mutually beneficial deal so we both are happy. You want to sell his RE to get your commission in a deal that is mutually beneficial.

But you have a position whereas you make money on closing and moving onto the next deal, I have a position where I'm invested in both the property and the seller.

"The MLS will get you the highest list price minus this and minus that, oh and minus this other thing."

Or:

Comp price plus passive income through interest for years

When you sell through the MLS you abalienate yourself from the value of the asset for all time.

evestor1 said:

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TheBonifaceOption said:

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When you sell through the MLS you abalienate yourself from the value of the asset for all time.

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do you not abalientate yourself from the value of the asset for all time selling 'non-mls'

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Seller financing would have him getting interest for the duration of the loan. Why let the bank double it's money when you could do it?

Realtors, bankers, title companies, with rentals you have property management companies, all middlemen, all itching for their percent.



Let's simplify it.

Max - I'd be interested in your suburban home with renters. Depending on your terms to sell and the lease terms with current tenants.

Feel free to email me

Jdh.esq@yahoo.com

I love how the seller posts zero details on the property condition, location, valuation or financials, has multiple people saying they are interested, and triggers a sponsor / vet slugfest over whether he should sell or owner finance.

Somewhere in this mess there's actually great investment advice on two profitable solutions dependent on the OP's desire for liquidity for future investments.

What's your email? I'd love more info.

How many people do you know personally who have had a wraparound note called by the lender?

Zero. We've also never been in this very unique situation as a country. And I also personally know zero people who have ever had their home foreclosed on. Of all the thousands of people I've ever known or known of. And finally, you also have the bias that nobody is going to come here and brag that they got their note called for violating terms. But none of that means it hasn't or will not happen in the future if lenders want a relief valve. The risk is high enough that I wouldn't do it on any of my investments. If you do it or have done it, I truly hope it never happens to you.

We have indeed been in a similar situation before and have actually been in worse situations. I have also been in the real estate, investment, legal game for over twenty five years. I also don't personally know anyone who has had that type of note called. It is indeed a rare circumstance. I understand when others mention that is a possibility, however, it would also seem you should mention that you have never come across that type of situation in the past. Investors who use wraps are usually well informed of the highly unlikely risk of a wrap being called out of the blue and are willing to take that slight risk for potential great returns.

Can you please let me know the times in US history where interest rates increased twenty-two fold in just 16 months?

https://fred.stlouisfed.org/series/DFEDTARU

I was under the impression lenders borrow money based off the rate at the time. What does the interest rate matter if the margin is the same? I'm ignorant so honestly asking.

Lenders have to cost of money. But they make their real money on transactions and service fees. They churn so costs matter but volume is much more important. High rates reduce demand.

Pace Morby is a lead dog on sub2 real estate. Found him in the past 6 months. Watching his live calls is a good watch; he's very good on the phone and that's what impresses me the most. Sub2 is pretty much the only way he acquires real estate. Using loan servicing companies to handle the transactions keeps the due on sale clause under wraps. I've been intrigued about Sub2 for years, just never pursued it, it's not what I do. But, that's all he does so check him out if you want to do learn more.

Sub-to is very attractive if the loan originated under 4.2% times.