Subject to Investing system by Don Derosa ?

Question

I recently won a course and boot camp by Don DeRosa from my local REIA in a raffle. Part of the online material is his Building Wealth course which mainly focuses on purchasing properties via subject to and conveying title via a land trust. The question I have is that in listening to the course it seems it is almost 10 yrs old, so I was wondering if this is still a viable method to purchase properties.  I am trying to get more into real estate investing, have done a couple of flip and sells via a private lender ( I use the term loosely as he is my father in law and more of a partner since he puts up all the cash and we split the profits 50/50 ). It seems to me this would be much more effective as we would have to put up less cash for deals and could have more than one going on at one time since there is less cash needed per deal.

Bill Gulley · Answer

I don't know Don, and as old as that material is, you may have won a paperweight!

I've heard of the "Wealth Building" guru thing.

My advice, if you read or listen to that stuff, is take it with not a grain of salt but a pound and don't implement anything without your attorney reviewing what may likely be a creative financing mess. If things like "ability to pay", "loan servicing" "Dodd-Frank", "predatory lending/dealing" is not mentioned, stay away from doing anything suggested.

The Trust stuff is another sham as usually implemented to avoid any due on sale clause, it does not if there is a new beneficiary. It may make it harder for others to know who owns the door, but that too can be exposed easily by a judge, I just never had to hide out in business. Use insurance for potential liabilities. Good management means you're not negligent in the first place! Good luck :)