Baltimore Enterprises, LLC

Tel: (832) 930-5750 | Fax: (281) 369-6421 | Email: mail@baltimoreenterprisesllc.com

FAQ

For your primary residence. A conventional financing typical expects a down payment around 20% of the home’s purchase price, but with an investment property, the lender may require 30% of funds as a down payment.

A fix & lip loan is a short-term loan which allows the borrower to complete renovations so the home can be put back on the market as quickly as possible. Investors typically use hard money lenders for their Fix & flip projects, meaning the loan is secured by the property itself. If the property is completed and waiting for a buyer, some investors may apply for a loan from a traditional bank and pay off the hard money loan. Hard money is meant to be for short time lending, and the interest rate tends to me much higher than a traditional lender. Other ways

Benefit of hard money vs conventional mortgage. With hard money, the loan is based on the estimated after-repair value (ARV). Even knowing that the rates are higher, and the terms are shorter; borrowers are still interested in taking the chance. Also, the origination fees and closing costs may also be higher. While conventional mortgage, you are waiting weeks or months for closing.

A BETTER UNDERSTANDING OF REAL ESTATE INVESTMENT COMPANIES

A real estate investment company is a company that invests in different types of real estate properties.

Working in real estate is exactly what a real estate agent does. He/she only deals with real estate transactions and not the properties themselves. On the other hand, a real estate investor is the one who makes a living by purchasing investment properties and using them to generate money in the long-term.

An REI does not need a real estate license, license is required only if you plan to represent someone other than yourself in the purchase and sale of properties.

REI company works with individuals or other investment companies such as hedge funds companies to grow their portfolio. They typically invest in commercial-grade real estates such as office buildings, multi-family apartments, retail buildings, developments, hotels, resorts, and industrial.

FAQ’S on Accepting Monthly Payments to Sell a Property

After terms are accepted and due diligence completed, the closing is done through a local real estate attorney. At closing, the deed would be transferred into our company name and the mortgage loan would remain in your name until it has been paid off in full.

Yes, on line 203 of the HUD statement (document provided when a home is bought/sold) there is a line option that indicates a property is being sold ‘subject to existing financing’.
This is exactly what we are doing by purchasing your property under this option.
We are keeping your current mortgage in place and making the payments on your behalf.

The timeframe to pay off the mortgage is typically set for the remaining life of the loan. However, as our profit is made once the property sells, it is our priority to pay off the mortgage balance sooner rather than later.

We typically close within 30 business days, but this can be adjusted according to the needs of the seller, status of the mortgage (example: if there were a pending foreclosure date) and/or if other issues impacting closing arise.

We do, our company will be responsible for all maintenance and repairs on the property per the terms of the agreement.

We cannot make any guarantees over future creditworthiness nor lending guidelines, however, ifthe lender requests any additional documents to confirm your prior mortgage is being paid, just contact us and we’ll be happy to provide them.

No, our company covers all expenses related to closing the transaction.

No, our company will purchase the property in as-is condition.

If payments are not made, it would reflect negatively on your credit report. However, as our business reputation and financial investment would also be on the line, you can rest assured all payments will be made timely.

Payment confirmations can be made by contacting the lender’s customer service number or logging into your online account with the lender.

To ensure we keep a set amount in reserves for making timely mortgage payments, bringing loans current, and making any necessary property repairs, we typically do not provide a substantial amount of money to sellers at closing. However, we can provide reasonable financial assistance for local moving expenses, as negotiated.

Yes, equity is not a factor, as we purchase properties with varying amounts of equity.

Yes, at closing, we will pay the past due amount directly to the attorney, who will then forward it directly to the lender, thus bringing the loan current.

Our timely payments on your mortgage should strengthen your credit score. As the number of on time payments grow and the loan balance decreases you should begin to see a positive impact.

No, they do not need to be notified, timely mortgage payments are the priority for the lender, not who is making the payments.
If you chose to notify the lender, they may advise it cannot be done and we would be unable to assist further.

There would be no responsibility to the heirs.Since we would own the property, we’d continue to make payments to the lender as normal.

We do, our company will obtain a new non owner-occupied policy. All parties listed on the loan, the lender and our company will be listed as policy holders. If an insurance claim needed to be filed at any time, we would file it.

We typically purchase for the current loan balance.

Payments will begin on the first day of the month following the 30-day period after the close.
(Example: Closing happens on August 30th, our first payment would be October 1st)
*Note: If the loan is past due and/or has a potential foreclosure date, the mortgage would be brought current at closing.

Yes, all of the above information would apply(excluding anything pertaining to a lender/mortgage).
As you would be financing the property to us and acting as ‘the bank’, we would negotiate all terms with you directly and closing would be handled through a real estate attorney.
As part of the closing paperwork, the attorney wouldalso provide a document advising of your right to foreclosein the event of non-payment after a specified period.

Contact Info

For any inquiries

Tel: (832) 930-5750
Fax: (281) 369-6421
Email: mail@baltimoreenterprisesllc.com

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