What a Broker told me

General Real Estate Investing
1

  1. that you cannot buy properties with seller financing anymore (in NY - long island)

  2. that forming an LLC and having multiple people involved in biz is bad

  3. do it all yourself (he manages 10 props on LI - all through conventional means) and subs out ALL hands on work on rentals)

  4. that no bank will allow me to assume mortgage (spoke with two other “senior loan consultants” of other lenders - did not understand the relationship between assumable and nonassumable mortgages and relation to DOSC. all kept telling me “an unassumable mortgage cannot become assumable…” when all i was asking them was who to speak to about DOSC and avoiding the loan being called in if I were to assume someone’s mortgage.

NOW

question:
other than bypassing all the hassles of getting out another loan to purchase a home - what are the advantages of assuming someone’s mortgage?

and

what are some of the tax advantages - other general advantages for a seller to hold a note?

thanks

TMcG

2

As to #4, you’re right . . . no bank will ALLOW you to assume a mortgage. Use a land trust and no bank can stop you from assuming a mortgage. They are exempt from the DOSC.

Others will have to help you with questions 1-3. Good luck.

Da Wiz

3

hey Gary,

well 1- 3 was just pointing out the nay sayer - who tells you that

NO seller will do this

or that

I’ve checked ALL this

or that

It is ALWAYS this way, or NEVER that way

I realize the Land Trust is the way to go for #4

  • but i was pointing out another conventional person (washington mutual loan rep) saying, you CAN’T do…

my question though was - what r the advantages of assuming mortgages for seller and buyer?

I think I know them, but I’m interested in feedback from here.

Gary, thanks for the help!

:wink: