All Forum Posts by: Andrew Kiel

	How acquired	Purchase price	acquisition cost	cash outlay (cumulative)	monthly out	monthly in	Net
House 1	Cash	$ 60,000.00	$ 60,000.00	$ 60,000.00	$ 400.00	$ 995.00	$ 595.00
House 2	Subject to	$ 107,000.00	$ 10,000.00	$ 70,000.00	$ 650.00	$ 995.00	$ 345.00
House 3	Subject to	$ 130,000.00	$ 20,000.00	$ 90,000.00	$ 888.00	$ 1,595.00	$ 707.00
House 4	Owner finance	$ 132,500.00	$ 12,500.00	$ 102,500.00	$ 1,060.00	$ 1,295.00	$ 235.00
House 5	New loan	$ 84,000.00	$ 18,000.00	$ 120,500.00	$ 495.00	$ 1,095.00	$ 600.00
House 6	New loan	$ 115,000.00	$ 8,000.00	$ 128,500.00	$ 785.00	$ 1,395.00	$ 610.00
House 7	Owner finance	$ 147,500.00	$ 7,500.00	$ 136,000.00	$ 1,029.00	$ 1,495.00	$ 466.00
House 8	Owner finance	$ 154,000.00	$ 10,000.00	$ 146,000.00	$ 990.00	$ 1,495.00	$ 505.00
House 9	Subject to	$ 177,000.00	$ 10,000.00	$ 156,000.00	$ 940.00	$ 1,495.00	$ 555.00
House 10	New loan	$ 139,500.00	$ 30,000.00	$ 186,000.00	$ 790.00	$ 1,395.00	$ 605.00
							$ 5,223.00

Great discussion!  This is not as far fetched as some think it is, it is absolutely doable as I've done it.  There are many different strategies that would accomplish this goal.  And as others stated here, action (and also education) is the key.  Find the system and style that works best for you and go.  It's amazing what you can accomplish if you believe and back it up with action.  And for those that don't believe it's possible, you're right too.

Always use a warranty deed.  A quit claim deed offers no warranties, it only releases the (potential) interest of a party. A quit claim deed will also invalidate the title insurance that was last purchased for the property. 

Hi Sam,

We have a good bit of experience in Tucson, I'd be happy to talk with you and give you a couple of recommendations depending on your specific criteria.

We frequently do partnerships like this. In my opinion buying the new property in an LLC is the best option and use a JV agreement with your partner to outline everything (who pays what, who manages, how distributions are handled, how to handle disposition of the property, etc). Some lenders don't want to allow an LLC to be the buyer so we also will deed the property into the LLC (using a warranty deed) after the transaction is funded.

Hi Blake and welcome to BP!

You certainly can buy the property from your parents using a land contract or "subject to" the existing loan.  We do this all the time.  The downfall is that, yes, you are violating the due on sale clause in the current loan that you're parents have and there is a low possibility that the loan could be called.  There are plenty of good posts in here about subject to and land contract transactions so I won't revisit it in detail here. 

This sounds like a great opportunity for you to get started in real estate investing!  Best wishes!

Actually, the answer is simple.  You need a warranty deed signing the property over from her to you.  And even (or especially) with family, I would still suggest using a title company and getting title insurance.  This will protect you in case any other creditors may come after her and keep them from attaching to the property.

This is how we take over properties "subject to" the existing financing, no need to go out and get a new loan this way, at least not right away.  I'd also recommend a power of attorney form that gives you rights to talk with lender, insurance company, etc.

@Nate Falconer - Arizona is a title state so we always work with a title company to close our deals and we always get title insurance.  We generally have the title company service the loan, and they escrow for taxes and insurance.

My preference is to NOT have a subject to deal serviced by a title company.  They do not add any value here, they are just receiving funds and then mailing them back out again for a fee.  When we do a sub-to deal, we get the seller to sign power of attorney forms giving my (management) company 3rd party authorization to speak with the lender and insurance companies.  We then make the payments directly to the mortgage company through their website.

We originally used a title company for loan servicing and found that our timely payments were often received late by the mortgage company due to the time lag that the title company took to send out the payments.  This was unacceptable to pay late fees this way.

@Saxxon Rybski welcome to BP.  We are buy and hold single family investors in the Tucson market and are always looking to network with other investors.  Feel free to reach out and I'd be happy to meet for a coffee.