Ask Ron – Phil Barber asks about mortgages when closing an ACTS deal.

6 Responses to Ask Ron – Phil Barber asks about mortgages when closing an ACTS deal.

1. CRES Mandujano says:

   March 10, 2012 at 3:08 am

   Ron thank you for answer this question
   one thing less to worried about it

   Reply
2. Jesse Toms says:

   December 21, 2016 at 9:56 am

   But it’s better to have a fixed loan?

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3. Jesse Toms says:

   December 21, 2016 at 10:02 am

   So you can check to see if and when the ARM will go up and if it’s gonna go up a lot in the near future you should probably stay away from this deal unless there is still cash flow when it go’s up and and the lease optioned is ok with the potential increase

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4. Trevor Morgan says:

   August 22, 2017 at 12:01 pm

   But, listen to the video – and check the forms available on site, here – the lease floats up or down as the underlying mortgage goes up or down. Disclosed to the tenant, and with notice. You can’t predict when an ARM is going to move unless it’s current, as in the next couple of months, information. Don’t worry about the ARM shift, keep yourself covered in the agreements that when/if the ARM moves, the lease changes to match it. Rewatch the video. Several times.

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5. Carey Dodson says:

   April 26, 2019 at 12:03 pm

   Which document (or clause) should we use to mitigate an underlying ARM?

   Reply
6. Evgenii Puchkaryov says:

   May 16, 2020 at 8:21 pm

   The typical “subject to” purchase says I pay X per month until paid. But in this case X changes. In addition, taxes and insurance change. So, I guess Ron says that the LO buyer’s contract will have wording to account for increases like that. This may hit against rent control restrictions and also the lease side of the agreement is typically fixed for some period, so this can be tricky.

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