Investor · Orlando, FL · Member since 2020 · 23 posts · 15 votes
5y
@Steven Foster Wilson I have heard that those that were already in trouble before will be in even more trouble now.
However, I think as entrepreneurs we need to see this as a great opportunity.
In 2008, a lot of people got hurt, but a lot of people also made a fortune.
For many of us in real estate, we need to be ready with solutions for those that will be facing issues (landlords who cannot afford their mortgage, owner occupants who cannot afford their mortgage).
If you can find ways to help people in these situations, you will find prosperity!
@Steven Foster Wilson I have heard that those that were already in trouble before will be in even more trouble now.
However, I think as entrepreneurs we need to see this as a great opportunity.
In 2008, a lot of people got hurt, but a lot of people also made a fortune.
For many of us in real estate, we need to be ready with solutions for those that will be facing issues (landlords who cannot afford their mortgage, owner occupants who cannot afford their mortgage).
If you can find ways to help people in these situations, you will find prosperity!
What is your idea of a solution to someone in pre-foreclosure?
My only thought is to buy their property from them...?
@John Teachout are you affected it too? How did you cope up?
We purchased 6 properties in 2020. Almost all with inherited tenants. There has been some rent collection difficulties but we likely would have had those anyway. We've received most of our rent throughout the period and I'm planning on filing an eviction tomorrow on one property. Not covid related, just someone that has proven unable to manage their finances. I expect the inventory shortages to improve when/if the covid thing eases but overall, we're life as usual. Get up everyday and work on property renovations just like we did before the mess started.
@Steven Wilson probably going to see a huge rise in foreclosures in 2021. Otherwise than that, good or bad will depend on the area of the property.
Do you think mortgage forebearance will be able to mitigate the foreclosure rate at all?
Foreclosures are a long and drawn out process. It doesn't happen because someone misses a payment or is late. Most lenders give a lot of slack hoping the borrower will eventually get on track. Foreclosures usually take place when there has been a long history of non payment and the lenders realize they're never going to get their money, so they take the property back.
@Steven Foster Wilson I have heard that those that were already in trouble before will be in even more trouble now.
However, I think as entrepreneurs we need to see this as a great opportunity.
In 2008, a lot of people got hurt, but a lot of people also made a fortune.
For many of us in real estate, we need to be ready with solutions for those that will be facing issues (landlords who cannot afford their mortgage, owner occupants who cannot afford their mortgage).
If you can find ways to help people in these situations, you will find prosperity!
What is your idea of a solution to someone in pre-foreclosure?
My only thought is to buy their property from them...?
@Steven Wilson Have you heard of the term Subject-To?
You can purchase an owner's property by taking over and paying their existing mortgage for them.
Sometimes sellers do not like that they still have an attachment to the house/property, but since the mortgage is still in their name they get the benefit of an increased credit score from paying down a debt.
I have bought 3 properties like using this method, this year - and I expect to buy many more this way.
It's great because you don't have to get financing (it's already in place), and you do not need that much cash.
In one instance, I only had to come up with $5,000 and then rented it 3 weeks later 👍🏼
This is one of the best ways to help owner occupants in pre-foreclosure/foreclosure.
To help landlords, you'd probably just have to pay cash and then either try and pay for the non-paying tenants to move out or wait until evictions open back up.
Interested if anyone else has any other creative strategies!?
@Steven Foster Wilson I have heard that those that were already in trouble before will be in even more trouble now.
However, I think as entrepreneurs we need to see this as a great opportunity.
In 2008, a lot of people got hurt, but a lot of people also made a fortune.
For many of us in real estate, we need to be ready with solutions for those that will be facing issues (landlords who cannot afford their mortgage, owner occupants who cannot afford their mortgage).
If you can find ways to help people in these situations, you will find prosperity!
What is your idea of a solution to someone in pre-foreclosure?
My only thought is to buy their property from them...?
@Steven Wilson Have you heard of the term Subject-To?
You can purchase an owner's property by taking over and paying their existing mortgage for them.
Sometimes sellers do not like that they still have an attachment to the house/property, but since the mortgage is still in their name they get the benefit of an increased credit score from paying down a debt.
I have bought 3 properties like using this method, this year - and I expect to buy many more this way.
It's great because you don't have to get financing (it's already in place), and you do not need that much cash.
In one instance, I only had to come up with $5,000 and then rented it 3 weeks later 👍🏼
This is one of the best ways to help owner occupants in pre-foreclosure/foreclosure.
To help landlords, you'd probably just have to pay cash and then either try and pay for the non-paying tenants to move out or wait until evictions open back up.
Interested if anyone else has any other creative strategies!?
That’s incredible! I will for sure look into this in the up coming months and hopefully can utilize this strategy!
It's hard to pinpoint every industry that's affected because that inevitably affects real estate. One thing I would focus on is selling and renting to people who's jobs are in essential worker industries.
You would have to pay off the existing loan before you could re-fi since the mortgage is still technically in the previous owner's name.
I've heard of some people using private money to pull this off, but typically the benefit of controlling a property without having to get permanent financing from a lender is worth the 1-2 points you might get taken off if you refi.