What I'm Doing Differently for 2024 - Super Off Market Deals Coming
Investor · Nationally · Member since 2023 · 1k+ posts · 854 votes
What I'm Doing Differently for 2024 - Super Off Market Deals Coming
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votesyou guys are partners right or the same person ?? just curious as your post seem to be pretty identical.
10 Replies
- Investor · Scottsdale Austin Tuktoyaktuk · Member since 2021 · 4k+ posts · 4k+ votes2yGood choices.
Quote from @Account Closed:
Ok, so I'm doing what I've been coaching and doing for 30 years. ;-)
BUY OFF MARKET IN 2024 ! So, what's the trick?
People with properties that want to sell, have excellent interest rates, they're just not on the MLS. You don't find these in Socal, they are in places like TX, AZ, GA, IN & OH & TN.
And it's your mission, if you choose to accept it, to learn how to find these treasures. I buy them using Subject To (shortened for some reason to Subto), but you can use conventional financing, hard money, SDIRA, or 401(k)
That's the thing, it doesn't matter if you use a bank or don't use a bank. It's just easier and more profitable if you don't use a bank.
They can be rentals, Fix & flips, even STR, take your pick, but my cadre of investors is forming a new group for this very purpose. and we're excited about what we see. And you should be excited & planning for the New Year Too!
- 2yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
you guys are partners right or the same person ?? just curious as your post seem to be pretty identical.
- Investor · KY · Member since 2022 · 204 posts · 77 votes2y
Quote from @Account Closed:
Ok, so I'm doing what I've been coaching and doing for 30 years. ;-)
BUY OFF MARKET IN 2024 ! So, what's the trick?
People with properties that want to sell, have excellent interest rates, they're just not on the MLS. You don't find these in Socal, they are in places like TX, AZ, GA, IN & OH & TN.
And it's your mission, if you choose to accept it, to learn how to find these treasures. I buy them using Subject To (shortened for some reason to Subto), but you can use conventional financing, hard money, SDIRA, or 401(k)
That's the thing, it doesn't matter if you use a bank or don't use a bank. It's just easier and more profitable if you don't use a bank.
They can be rentals, Fix & flips, even STR, take your pick, but my cadre of investors is forming a new group for this very purpose. and we're excited about what we see. And you should be excited & planning for the New Year Too!
Can you explain the flow of how a typical subject to purchase works?
- Investor · KY · Member since 2022 · 204 posts · 77 votes2y
Quote from @Account Closed:
Quote from @Zachary Cain Humphrey:
Quote from @Account Closed:
Ok, so I'm doing what I've been coaching and doing for 30 years. ;-)
BUY OFF MARKET IN 2024 ! So, what's the trick?
People with properties that want to sell, have excellent interest rates, they're just not on the MLS. You don't find these in Socal, they are in places like TX, AZ, GA, IN & OH & TN.
And it's your mission, if you choose to accept it, to learn how to find these treasures. I buy them using Subject To (shortened for some reason to Subto), but you can use conventional financing, hard money, SDIRA, or 401(k)
That's the thing, it doesn't matter if you use a bank or don't use a bank. It's just easier and more profitable if you don't use a bank.
They can be rentals, Fix & flips, even STR, take your pick, but my cadre of investors is forming a new group for this very purpose. and we're excited about what we see. And you should be excited & planning for the New Year Too!
Can you explain the flow of how a typical subject to purchase works?
@Zachary Cain Humphrey: Your Question: "Can you explain the flow of how a typical subject to purchase works?"
Sure, in it's most basics terms:
You market to/attract someone who has a house but life changes has put them in a "don't wanter" situation - they need to or want to sell but don't want to put their house on the MLS for a variety of reasons
I have a list of 26 different sources for these leads that are true if the property is in CA Socal, TX, OH< NY, IL, GA - it doesn't matter where because there are a large number of people who fit into this category in every city
When you get a conversation going with them, you ask them why they are selling and a series of other questions to qualify them for Subject To or other Creative Financing
You have to tell them what happens, the risks and be honest with them. They need to know and deserve to know the full picture (I think this is where some people get into trouble, but not taking this part seriously)
You also direct them to the benefits of Subject To and if they agree, you fill out a Purchase & Sale Agreement and some other very important documents
You decide on things like sales price, any money that goes to the seller so they can move, inspection or not, any contingencies you might have, closing date, moving date
Those documents then are used to open escrow and order a title report
If the title is clean you go on to the next step, if there are issues with the title you clean up the issues
Escrow will prepare most of the paperwork
Once escrow is ready, the seller is scheduled for the signing
You transfer money to escrow, Yes - it takes money to do a Subject To. Not as much money as if you are buying off the MLS, but it still takes money. This should Not be borrowed money.
There are closing costs, mortgage payments, utilities, repairs, whatever expenses a house has you need to be prepared for. We cover everything necessary to make it go smoothly in the coaching but you get the general idea.
It is very, very risky for an
After they have signed, escrow will record the deed and the property is legally yours
The seller then moves to their chosen location and the house is vacant
You start making the mortgage payment
At that point you can rent it out, fix & flip, turn it into an STR or whatever your plans are. Some choices are much better than others.
What we do then is place it out to market (not the MLS) for a Lease Option
We are making the mortgage payment
Someone wants to buy the property on a Lease Option so they provide the $40,000 Option fee, which we get to keep and spend, which gives them the exclusive right to exercise the Option within the agreed upon timeframe
They make payments on the lease which more than our payment on the mortgage
We get the cash flow, the $40,000 Option fee, the depreciation, principal pay down and so on
They get to paint the walls any color they want, treat it like their home, remodel take care of repairs and they have time to clean up their credit so they can later refinance and exercise the option
But, as I mentioned, you can do a variety of things once you own the house.There are certain precautions that are wise to take, tho' I rarely see them mentioned, which is a shame. It's kind of like learning to ride a bike. Almost anybody can, but they also need to learn to steer and brake. The learning to steer and brake part is not covered, because it doesn't help sell the "gurus" programs and community.
You stated, "you fill out a Purchase & Sale Agreement and some other very important documents". Do you happen to have a list of what these very important documents are? I think the process of the documents sounds so terribly confusing. Are you typing up these documents or your attorney? Who writes these important documents and makes sure the right documents are being filled out correctly?
- Investor · KY · Member since 2022 · 204 posts · 77 votes2y
Quote from @Account Closed:
I'd love it if the proper way to do these could be conveyed by a few words or documents.Quote from @Zachary Cain Humphrey:
Quote from @Account Closed:
Quote from @Zachary Cain Humphrey:
Quote from @Account Closed:
Ok, so I'm doing what I've been coaching and doing for 30 years. ;-)
BUY OFF MARKET IN 2024 ! So, what's the trick?
People with properties that want to sell, have excellent interest rates, they're just not on the MLS. You don't find these in Socal, they are in places like TX, AZ, GA, IN & OH & TN.
And it's your mission, if you choose to accept it, to learn how to find these treasures. I buy them using Subject To (shortened for some reason to Subto), but you can use conventional financing, hard money, SDIRA, or 401(k)
That's the thing, it doesn't matter if you use a bank or don't use a bank. It's just easier and more profitable if you don't use a bank.
They can be rentals, Fix & flips, even STR, take your pick, but my cadre of investors is forming a new group for this very purpose. and we're excited about what we see. And you should be excited & planning for the New Year Too!
Can you explain the flow of how a typical subject to purchase works?
@Zachary Cain Humphrey: Your Question: "Can you explain the flow of how a typical subject to purchase works?"
Sure, in it's most basics terms:
You market to/attract someone who has a house but life changes has put them in a "don't wanter" situation - they need to or want to sell but don't want to put their house on the MLS for a variety of reasonsYou stated, "you fill out a Purchase & Sale Agreement and some other very important documents". Do you happen to have a list of what these very important documents are? I think the process of the documents sounds so terribly confusing. Are you typing up these documents or your attorney? Who writes these important documents and makes sure the right documents are being filled out correctly?
That is what is being sold on youtube, but it just isn't that simple. People post on Bigger Pockets that they paid to join a "Subto communty" that answers those questions. I've looked at what they post and there are some serious legal errors being promoted. And when the lawsuits start flying, they are going to make a lot of lawyers rich(er). Don't do that. It's career ending. Get trained properly, yes we do train & coach, of course it isn't free and yes you need money to do Subject To safely. Think of Subject To as being a rifle, yes you can hunt deer and eat, But you sure need to be trained before going off into the forest shooting at things.
But to answer your questions:
An attorney has to create the proper documents. This involves law, banking, contracts, Dodd-Frank, and so on and each state has their own twists and turns There are federal things that need to be considered. We've already done all that, so our documents work in all states. I'm not sure how others do things.If I had 20k to invest would that be sufficient to get into a deal? Really I know that is a dumb question as it depends on the conditions laid out by the seller with regards to what problems they have and how much they need to "fix" their problem and get the house subject to. Thoughts?
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