Houston area sub 2 with a wrap mortgage?

Question

I posed this question in a broader since a few days ago and stated that I was really looking for advice from someone in or around Houston and it didn't get any comments.  I'm pretty new to the sight and I didn't include "Houston" in the subject line.  So, this is attempt number 2.

I'm looking for input on subject 2 acquisitions and then resale with a wrap.  I understand there are a lot of potential pitfalls and problems that can pop up with this strategy but I know there are people out there doing it.  I'm hoping I can get some input from people who are actually doing these deals and not from people who have yet to attempt this strategy.

I'm also looking for a local RMLO and attorney to guide me through this process.  I don't need a lot of hand holding, I'm already a active investor, I just need to make sure I'm covering all my bases.

Thanks in advance,

Luke

Brian Gibbons · Answer

Buying on sub2 and wrapping the deal for a buyer

1. Go here http://lonestarlandlaw.com/subject-to-transactions.html

2. Go here http://lonestarlandlaw.com/Wraparound.html

3. RMLO Mindy Henderson in Plano TX

https://www.linkedin.com/in/mindykhenderson

Get a LAWYER.

Best Wishes,

Brian

Bill Gulley · Answer

Luke, yes there are pitfalls. You really need to buy at depressed prices and/or make improvements to bring the market value up to finance the homebuyer. These are baited with predatory issues and really not a place to start in RE.

There are several threads on sub-2s. Search here on BP "predatory dealing" another is "Sub-to with seller financing" both recent threads. Wrapping an existing mortgage can quickly go past the expertise of someone with just a RMLO, they need experience and financing knowledge, not regulations so much as they have that, but in finance and actual loan underwriting. The key will be locating one who really knows and not someone claiming to know. I hesitate in putting a number of years to experience, but I'm thinking like 10 years+, or maybe 5 years+ with credentials in finance or accounting, maybe. This is not an area to be educated by gurus.    :)

Brant Richardson · Answer

I have no experience with doing subject too but maybe I can be helpful with this observation.  You have no clear question stated or information about the deal.

Houston area sub 2 with a wrap mortgage?

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