AboutDennis Herman Expertise I can answer questions on Real Estate such as question on writing an Offer to Purchase. What can go wrong after an offer is written? What is Buyer Agency and what will it do for me? What is a foreclosure? What is the difference between a foreclosure, a bank owned property and a short sale? What is the best way to locate a property? What steps can be taken to avoid foreclosure? How do Real Estate Agents get paid? How can I quickly build equity in a home? How do I view homes? What types of homes will have the best prices? How do I choose an agent? What types of financing are available?
Experience Residential and commercial real estate. New home purchases. Buyer Agency. First time home buyers. Foreclosures, bank owned properties, estate sales and short sales.
Organizations Greater Milwaukee Realtors Association
Wisconsin Realtors Association
National Association of Realtors
Publications http://activerain.com/bloghome
Education/Credentials State of Wisconsin Licensed Real Estate Sales Agent
Accredited Buyer Agency Training
Relocation Training
Certified Senior Citizen Representative
Wisconsin Real Estate Continuing Education
Question A nearby developer got a $850K loan to build a spec house. During construction he decided to increase the size of the house by 30% and I provided a private loan of $150K at 11% to do this. The builder has made regular payments on this debt. Now the house is finished and the construction loan is converted into a regular mortgage. I would like to place a 2nd on the house (the developer agrees) and then sell it. Unfortunately he can increase the 1st to include my private loan and just pay me off. Any advice on how to write up this 2nd mortgage so it is marketable?
Answer Thank you for the question. Sorry to say, I an in the marketing end of real estate and not in the lending business. I would hope you had the aid of an attorney when drawing up the $150,000 second mortgage on the project. If that is the case your attorney will be able to help you with your question.
If you would like to place a lien on the property based on the amount of the secondary loan you can stop in at a store which provides legal documents. I tried searching this to download on the Internet in WI but you need to provide a license number to prove you are an attorney.
If he can obtain a mortgage to pay off your loan, why don't you let him do that? I would make sure I had a lien on the property and this lien showed up on a title search. This way your loan would have to be paid when the owner refinances or sells the property.
