Just signed 1st deal to take over the payments, Subject To

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Just signed 1st deal to take over the payments, Subject To

Kris Haskins
Investor · hampton, VA · Member since 2009 · 428 posts · 249 votes

It's a great day for my coaching Client Sam Coker, he just inked 2 deals with a seller that let him take over the payments.  The 1st house is a 3/1.5, 1000sf with a payment of $785/month with only $67k left on the loan.  The house has central heating and air and is ready to move in(rent ready).   2nd house is a 2/1 approx 800sf but the payment is $900.  He received over 20 calls to look at the 3bdrm yesterday and I presume we'll get a good downpayment out of a contractor or a family with challenged credit.  The seller was an extremely tired landlord that bought the properties over 10 years ago.  She just gave him the deeds.  This is my favorite way to buy a house.  

Way to go Sam....  

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Gino BarbaroPro Member
Rental Property Investor · St Augustine, FL · Member since 2014 · 2k+ posts · 1k+ votes
10y

@Kris Haskins

Hi Kris,

I'm just waiting for people to come out and say you can't do that.  Keep looking for those motivated sellers!

Sounds like a great deal.  Congrats and good luck on the net one.

Podcast Guest on Show The “Conveyor Belt” System That’ll Build You a BIG Rental Portfolio Quickly
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  • Gino BarbaroPro Member
    Rental Property Investor · St Augustine, FL · Member since 2014 · 2k+ posts · 1k+ votes
    10y

    @Kris Haskins

    Hi Kris,

    I'm just waiting for people to come out and say you can't do that.  Keep looking for those motivated sellers!

    Sounds like a great deal.  Congrats and good luck on the net one.

    Podcast Guest on Show The “Conveyor Belt” System That’ll Build You a BIG Rental Portfolio Quickly
    1Reply
  • Lear Walls
    Developer · Catonsville, MD · Member since 2013 · 11 posts · 1 vote
    10y

    Awesome ! 

    0Reply
  • Ravi P.
    Boston, MA · Member since 2015 · 72 posts · 16 votes
    10y

    congratulations, what an amazing deal!

    1Reply
  • Chris K.Pro Member
    Investor · Baltimore, MD · Member since 2012 · 1k+ posts · 655 votes
    10y

    Nice! How did he find those deals?

    1Reply
  • Mark Brogan
    Investor · Roanoke, VA · Member since 2012 · 1k+ posts · 374 votes
    10y

    congrats on those deals 

    Great job

    0Reply
  • Kris Haskins
    OP
    Investor · hampton, VA · Member since 2009 · 428 posts · 249 votes
    10y
    Originally posted by @Chris K.:

    Nice! How did he find those deals?

     Hey Chris he found these deals with a direct mail campaign targeting non-owner occupied properties.

    1Reply
  • Nick Versetto
    Investor · Frankfort, IL · Member since 2015 · 206 posts · 55 votes
    10y

    congrats on the deals. 

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    10y

    @Chris K.  burnt out landlord syndrome. 

    @Kris Haskins

    how do you handle disclosures to the seller... IE that they are still on the hook for the loan and if your student fails to pay on the first they are liable or it will trash their credit.

    Also how do you prepare your students if the loan is called when or if the alienation clause is envoked...

    Obviously sub too is nice for buyer and if done right helps seller as long as they are dealing with folks that are full disclosure on the risks to the sellers credit.

    Podcast Guest on Show #222
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  • Kris Haskins
    OP
    Investor · hampton, VA · Member since 2009 · 428 posts · 249 votes
    10y
    Originally posted by @Jay Hinrichs:

    @Chris K.  burnt out landlord syndrome. 

    @Kris Haskins

    how do you handle disclosures to the seller... IE that they are still on the hook for the loan and if your student fails to pay on the first they are liable or it will trash their credit.

    Also how do you prepare your students if the loan is called when or if the alienation clause is envoked...

    Obviously sub too is nice for buyer and if done right helps seller as long as they are dealing with folks that are full disclosure on the risks to the sellers credit.

     wow. from ur post sounds like u hv 100% full knowledge of how this all works.  so im going w my gut that it makes no sense to entertain you  especially since u understand disclosures.  u must be looking for a debate.   thnx anyway

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    10y

    @Kris Haskins  so I take it you don't inform the seller of the risks of doing sub too

    my point to others that may consider this or who may consider selling this way is simply to protect themselves so they don't end up deeding their property to someone then that someone rips the rents fails to pay on the underlying mortgage and the poor seller is fubared.. I am sure your client has no intention of doing this.

    But I have seen these scenerios were this has happened and this is just not about how great it is for you and your student.. both sides must win.

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
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