Specialist · Tucson, AZ · Member since 2009 · 108 posts · 24 votes
I have followed Michael Quarles' posts on other websites and I like a lot of what I read. I am not a huge proponent of mentors but at the same time, my free time/study time is very limited with my job and he offers a year long mentorship for only 899. Unfortunately I cant get any references for him.
Anyone have experience with him?
Flipper/Rehabber · Bakersfield, CA · Member since 2008 · 3k+ posts · 3k+ votes
16y
Maybe I will get booted off on my first day back... Who knows..
Great point regarding the lower interest rates... Two very different types of sub2 investing out there in the sub2 world.. NON equity and equity..
I am an equity investor... So lets assume for a second that there is that loan out there at is a performing rate lower then current rate and the lender does exercise their right to call...
I wont buy and transfer title which I have control unless I see at the minimum 25% equity or 52k which ever is greater...
Keeping to that standard allows me, if forced to buy the lender on their call, to either refi or sell...
Unlike some investors I believe the best investment strategy is to never own property therefor I even during the escrow period of buying the property I am attempting to sell the property. I know that once I contract a property it averages 93 days to cash in my pocket...
So assuming I close without a buyer and buy Sub2 and the bank calls on the days of recorded transfer. I then have 30 days for the call and 90 days for the NOD and 21 days for the trustee sale... That totals 141 days ... Worst case...
Lets assume I cant sell the darn thing.... I do have at minimum 25% equity, If I put nothing down, which happens to be 10% too little for a hard money loan so I would ask myself. Does feeding this transaction 10% make economic sense.. At that point I would...
Lets assume I dont have the 10% to feed the deal and am faced with the lender taking the property. I at this point would lower the price and cause it to sell. Remembering that most investors pay 100% of value when they buy. So if I were to reduce it to 90% I would still earn 15% minus costs... Which after all is said is about 9%..
Keep in mid that my minimums are 52k or 25% which ever is more. So the break number is 204K so 9% of 204 is 21.6k
Specialist · Tucson, AZ · Member since 2009 · 108 posts · 24 votes
16y
I will ammend this after reading the good post by Ali. I am a huge proponent of mentors, I am not a huge proponent of mentors who charge for their "expertise." Of course I would rather have a local mentor who sees what I am doing and recognizes the benefits of working with me, I have found one here in Corpus, but I am moving to Pensacola so if anyone knows of some solid Pc investors ha, send them my way.
Real Estate Investor · Vicksburg, MI · Member since 2009 · 129 posts · 36 votes
16y
I've had no personal experience with Michael but have followed his postings for over 2 years. He is intelligent and a very straight shooter where real estate is involved. He's one to listen to when he posts. Herbster
Residential Real Estate Broker · Payson, AZ · Member since 2009 · 3k+ posts · 1k+ votes
16y
Originally posted by Samuel Ksiazkieicz:
haha well there we go then.
Samuel, Michael spends waaaay too much time on some 'other' forum which I visit occasionally to get some clicks on my signature back to my site.
'Other' forum is what I call it so not to mis-represent Josh or this site 'unprofessionally'. I've never spoken to Michael personally nor have I paid for any of his products or services but he does represent himself well on the 'other' forum if that means much of anything.
Now that he knows publicly that you're looking for references, maybe he'll step up and give some. I know if someone here were to ask for references about me, I would have at least a few people step and give those references for me without having to be asked. I would hope that Michael's reputation would do the same for him.
Flipper/Rehabber · Bakersfield, CA · Member since 2008 · 3k+ posts · 3k+ votes
16y
Hello Nick,,,
Okay I found a good referral.... I just called my MOM and coached her on what to say... I told her to sound younger then she is and to be nice... She promised not to say Michael's a nice boy...
If that doesn't work I have plenty of buddies down at the local pub willing to lie for me...
Sorry I have a bad sense of humor... The reality is that a referral is worthless. Its a set up waiting to convince someone who needs it... I would rather not... If someone wants into my program they do if not they dont..
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
16y
LOL, it must be a small world!
Michael, I have not had the pleasure of seeing your site or advice since I only hover around a few sites. If Nick says you're a Sub2 expert, that's good enough for me! I only have one issue with Sub2s and that is when do you notify the underlying mortgagee that you are or have done the deal? What do you suggest? Thanks, Bill
Flipper/Rehabber · Bakersfield, CA · Member since 2008 · 3k+ posts · 3k+ votes
16y
Good to meet you..
Great question... There are four was of notifying the lender of a transfer... BTW although I like Trusts on a Short Sale I do not use them on a Sub 2 deal to disguise ownership...
The four methods.
1) Order a payoff demand as if the seller is selling the property... Not a refinance payoff or amount owed.
2) Put insurance in name of the new owner ... Do not try and use the old insurance
3) Checks come from new owners back account with new owners name on check.
4) Record Deed.. Giving the world constructive notice...
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
16y
Hi, Thanks! If you do that with the inusrance, the new policy I'm sure the mortgagee is still listed as a loss payee. So if current interest rates are then lower than the mortgage assumed and the bank calls the loan due, then what? Thanks, Bill
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
16y
Guys, sorry to interrupt, but lets please stay on track with Samuel's original question. Please start a separate thread for the mechanics of doing subject to deals.
Flipper/Rehabber · Bakersfield, CA · Member since 2008 · 3k+ posts · 3k+ votes
16y
Maybe I will get booted off on my first day back... Who knows..
Great point regarding the lower interest rates... Two very different types of sub2 investing out there in the sub2 world.. NON equity and equity..
I am an equity investor... So lets assume for a second that there is that loan out there at is a performing rate lower then current rate and the lender does exercise their right to call...
I wont buy and transfer title which I have control unless I see at the minimum 25% equity or 52k which ever is greater...
Keeping to that standard allows me, if forced to buy the lender on their call, to either refi or sell...
Unlike some investors I believe the best investment strategy is to never own property therefor I even during the escrow period of buying the property I am attempting to sell the property. I know that once I contract a property it averages 93 days to cash in my pocket...
So assuming I close without a buyer and buy Sub2 and the bank calls on the days of recorded transfer. I then have 30 days for the call and 90 days for the NOD and 21 days for the trustee sale... That totals 141 days ... Worst case...
Lets assume I cant sell the darn thing.... I do have at minimum 25% equity, If I put nothing down, which happens to be 10% too little for a hard money loan so I would ask myself. Does feeding this transaction 10% make economic sense.. At that point I would...
Lets assume I dont have the 10% to feed the deal and am faced with the lender taking the property. I at this point would lower the price and cause it to sell. Remembering that most investors pay 100% of value when they buy. So if I were to reduce it to 90% I would still earn 15% minus costs... Which after all is said is about 9%..
Keep in mid that my minimums are 52k or 25% which ever is more. So the break number is 204K so 9% of 204 is 21.6k
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
16y
Hi Michael,
Well, the only thing I didn't follow was when you said that investors pay 100% of value, I have not seen anyone on BP advocating paying 100% of value for anything! LOL!
Here are some words tha will just knock the socks off of many here.....
I agree with your strategy! So long as you are in a position to take out the underlying mortgage, by financing or by sale, then I agree and I would accept that risk as well!
Michael, I have aquired properties sub2, but I have a little meeting with the lender before I do the deal and give them notice. We have a talk about current rates, risks associated with the deal and assigned interests. Out of perhaps a few hundred, only a handfull objected and I have never had an underlying mortgage called, specifically for the reason you pointed out, that I would take them out!
Samuel, in the transaction strategy Michael just outlined, I would agree that such is a viable method of controlling an equitable interest in a property! Just don't know what it costs! LOL
Good to meet you Michael I look forward to hearing about your experiences. Please stay tuned to BP! How long you been at it? Good Hunting! Later Bill
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
16y
From the forum rules you all agreed to when you joined:
No Off-Topic Postings.
Posts in a particular forum need to stay on topic. If you want to talk about something that is drastically removed from the topic of a forum, please create a new topic.
Subject to is a perfectly legitimate topic. Just not for this thread and not in this forum. Go over to the Innovative Strategies forum and start a new thread. Please.
Flipper/Rehabber · Bakersfield, CA · Member since 2008 · 3k+ posts · 3k+ votes
16y
Good to meet you too...
There are those that believe that if a property is financed at value and the cab cost of that property along with a reasonable resell interest rate could cause the investor to sell and the buyer and pay a monthly debt within 200 dollars of what a like property would rent for, then buying at 100 value is acceptable... I dont..
I would carefully consider and probably would assuming it were my business model buy a 100 percent leveraged seller financed property where their note was subordinated and I had the right to exchange collateral. Especially if the interest rate was below 4% and there was not a call on transfer... But thats just me.
Then there are those that buy investments based on what a real estate agent looks like and out of the MLS at full value or in excess of full value waiting for appreciation and using it as a tax right off to break even on costs.. I dont do that either,
Specialist · Tucson, AZ · Member since 2009 · 108 posts · 24 votes
16y
haha I didnt mean to make this post to start a mod-rules war, sorry Jon.
In response to everything else, I have followed Michael on "other" sites as well and appreciate what he has to say and how he says it, hence the reason he is the only person with a mentor program I am considering joining.
That being said I may be a total newbie but I was fortunate enough to look up the definition of "due diligence" the other day lol and an investment into a mentor is an investment like any other. That is what this is, I wasnt going behind Michaels back or bad mouthing and I dont think there is any reason for anything to be taken personally. Obviously I know you could influence referrals, what I was looking for was more of a description of your program and its different parts, coming from the point of view of a student, i.e. someone in my shoes.
Appreciate everyones input.
Flipper/Rehabber · Bakersfield, CA · Member since 2008 · 3k+ posts · 3k+ votes
16y
Sam I am honored that you're considering my mentoring...
If the only issue is if you like it or not let's say that if FOR ANY REASON YOU DONT I refund you the money... After all you're a Marine.. I figure if you can put your life on the line for me the least I can do is honor your word...
Specialist · Tucson, AZ · Member since 2009 · 108 posts · 24 votes
16y
Michael that is a pretty hard deal to beat, I appreciate it.
Ha I just flew in to Roswell New Mexico, not the most thriving metropolis, if anyone knows something entertaining to do here besides chasing aliens, let me know. I will probably be here for 2 weeks, focused solely on flying. Once I get out of here I will hit you up. I look forward to working with you and learning from you.
I just found this thread by googling your name. Great article! I've seem some of your other articles on the "other website".
One question: You say you typically expect 25% return within 93 days. That's a fantastic return. Are you wholesaling to other investors or buying ugly houses and selling them as fixer uppers? I know you mentioned something in the article about selling to investors who pay 100%ARV, but I did not quite understand.