Are you considering seller financing but not sure how to vet your borrower? In this episode of The Academy Presents: Real Estate Investing Rocks, we welcome Cal Ewing. Cal talks about the benefits of having an RMLO (Residential Mortgage Loan Originator) vet your borrower, setting up a fund for syndicating notes and pooling mortgages, and the importance of due diligence when it comes to real estate investing.

Join Angel and her esteemed guest to explore why hard money lenders look more at the value of the property and the borrower’s budget to decide whether to approve a loan, plus how investors can protect themselves from potential lawsuits and unethical practices such as taking advantage of loopholes or using farmland loans inappropriately.

Tune in now as Cal discusses why consulting a lawyer is essential in ensuring that all parties are within their legal rights!

[00:01 - 01:21] RMLO: A Necessary Protection For Real Estate Investors And Borrowers

• Angel welcomes back, Cal Ewing!
• RMLO (Residential Mortgage Loan Originator) is used to vet borrowers for seller financing

[01:22 - 13:06] Benefits Of Moving Into A Smaller Home

• The underwriting process looks at property value and borrower budget, not debt service coverage ratios
• Self-employed people who show low income can still be financed
• The flexibility of being able to visit family for extended periods of time due to not being tied down to a W2 job
• When buying notes for higher-end properties, there is a risk that the borrower may extend the foreclosure with a lawyer if wronged in business

[13:07 - 17:10] Protect Yourself And Do Your Due Diligence When Investing

• Stick to cookie-cutter houses when investing as higher-end borrowers may pay lawyers to be petty
• Prolonging foreclosures and collecting rent from tenants without owning the house
• Using farmland loans to purchase apartments in rural areas
• It is important to do due diligence on any methods or people hear about before blindly accepting them

[17:11 - 20:54] Closing Segment

• Cal talks about how it is important to protect oneself when going into real estate investing!
• Tune in to this episode to learn more about Cal!

Tweetable Quotes:

“We want everyone to be successful. We want our tenants to be successful, our borrowers to be successful. So, you don't want to put anyone in a rough spot where they're going to be in financial trouble just because of the way you set up the deal.” – Cal Ewing

“Always run it by a real estate attorney in your state. But I also think to run it by more than one because there are some strategies that work with standard real estate transactions.” – Cal Ewing

You can connect with Cal Ewing through:

Website: Talk With Cal Ewing

Website: Cal Ewing

YouTube: @CalEwingRealEstate

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