All Forum Posts by: Ben G.

Thanks for the feedback everyone!  

I understand that there is no way to remove the seller's name from the mortgage, that wasn't what I was hoping to accomplish.  What I was hoping to accomplish was referenced in the video that I mentioned.  I'm assuming some of you didn't watch the video.  The goal was to close using an instrument so that the sellers could use the subject 2 income/payment in their debt to income ratio.

@Shawn Holsapple Thanks for the great feedback Shawn.  As always you come in, in the clutch!  After putting the property in a land trust what is the instrument that is being used for the trustee to sell it to you.  Have you explored the options mentioned in the video, such as a wraparound mortgage, deed of trust, or land contract?  Or is your strategy  of the trustee assigning it to you enough for the future lender to recognize that income for the seller when and if they decide to purchase another home?  

If I wanted to buy a house subject to in Indianapolis what would be the best way to structure the deal so that the seller is able to buy another house without worrying about their debt to income ratio being affected from still having the lien on the house that they sold me subject to?

According to Ron LeGrand in his state of Florida, the instrument that is used is called a wraparound mortgage.  Here is a video of him explaining how it works in Flordida:http://youtu.be/qJ7lAOuokAI

He explains how every state uses a different instrument.  If you live in a deed of trust state it would be called an "all inclusive deed of trust" or "trust deed", or it might be called a "land contract"or "land installment contract."  This is all done buy purchasing the property in a land trust.  

Has anyone in Indianapolis structured a deal like this to enable the seller to purchase another home in the new state they are moving to. If so, what instrument did you use? A detailed explanation of an example deal like this can be found in the above linked video.

@Jynell Berkshire  have you facilitated any transactions such as this one?

Not sure about the red flag with the interest payment, but the 25k purchase price may be scary, I'm guessing it needs a ton of rehab? Or maybe not being that it's leased? What neighborhood is this property in.

@Scott Dixon thanks for the shout out, but a lot of what I learned was from applying some of @Joe McCall tactics.  He has a number of resources to help anyone looking to implement Podio into their wholesaling business.  

@Account Closed  this is a highly motivated seller, and therefore I agree it may be worth while to pursue a short sale.  Is there anyone you know in the Indianapolis area well versed with short-sales, and in your opinion would I be better served referring it to this person in exchange for a referral fee, and move on to the next lead, or should I pursuit it and learn something new?  

@Bill Gulley  says that the owner is still responsible for maintenance when selling on LO.

@Shawn Holsapple  you say the opposite in regards to maintenance on LO.  Is Indiana different than other states in this regard?

@Kerry Smith I appreciate you sharing, I learned a lot from listening to that one over again.  I will admit though that Bill has scared me off from attempting that strategy.  What happens when the seller on the acquisition side repairs their credit and wants to buy a house and cant?  What happens when the seller dies and a family member assumes the loan? 

@Kerry Smith  already on it as we speak!  Now I'll be up until 3:30 in the am learning something new.  I knew I should have avoided the forums this late at night.  Always keeps me up late.

@Dawn Anastasi  yeah I guess I didn't take into account the maintenance costs on the property.  I really feel for the lady so was trying to think of something to help her out.  Any other ideas?  @Kerry Smith 's idea sounds creative, but I wouldn't know where to begin?

@Kerry Smith what's the very 1st step on a deal like that, let me know and I'll take action, maybe this will become step by step deal analysis to deal closed thread ;)

@Account Closed,

  @Rodney Kuhl and I have looked in this area.  Like many people say, I keep hearing it varies street by street.  Can you give us cross streets where you were looking?

I was contacted by a lady in Wayne Township, with a house she want's to sell in Clermont a small town west of Indianapolis. 

She is 4 months behind on her mortgage.  She lost her husband last year, and she has been unable to make the payments on the house.  The house is vacant and she is living somewhere else.

The mortgage balance is $110,000

The PITI payment is : $810

The rent rate is: $1,100

The house was listed for $125k and sold for $117k two years ago.

It's a 3 bedroom 1.5 bath with full basement, and attached 1 car garage. The house is in great condition with good mechanicals, and a lot of updates.  

There isn't enough equity for me to wholesale it or flip it.  

Would this be a good Sub2 candidate if I sell it on a lease option?

Reasons for yes, reasons for no?

@Stephen Barton  I love hearing stories like these and taking action.  I have looked into using that strategy as well.

I don't believe we meant at the last meetup, but I look forward to talking with you at the next one!