All Forum Posts by: Bill Jones

HI Christoper

Re selling your place...That's exactly what I do... here it is in a NUTSHELL..

You can do the same thing with a Sub2..The down payment of course cos up with the value of the home....

1. Purchase inexpensive homes $5000-$20000 (I have an inexhaustible supply of these kind of homes they are not junk they are totally livable and not in need of repairs. They are not in a war zone there in a good area of the country that I'm from and totally familiar with. with all cash we can close on these homes within days.)

2. We, that is us the investment group resell the homes holding the first trust deed or a land contract...The return on investment is astounding... here's and example:

Purchase Price $6000

Sell Price $30000

Down Payment $1000 (The reason we can sell at this price is the low down and low monthly payments..Cheaper than rent)
Hold note for 10 years 120 months at 11%

Payment $399.48

Yield 95.88% (That's unbelievable)

Months until return of initial investment 12.52
Total payment $47,937.60
Profit $42,937.60

But here's the best part..If we want we can sell the note as follows:

FULL SELL
Yield 20%
Sell price $20,671.06
Discount $8,328.94
Profit $15,671.06

PARTIAL SELL
Yield 30%
Months 60
Sell Price $15,223.54
Remaining Balance $18,142.24
Total Profit $34,192.74

The financing possibilities are endless...

Hi Grant, Thanks...Also the seller has a one time exemption, and with an LLC guess how many exemptions you can come up with... At any rate a Loan originator is a good idea...On the other hand attorneys I still say No... If I could find a knowledgeable one...Ha.. I'd asked some questions but not get them involved. I'd opt for finding a knowledgeable escrow company.. If you find a good one they are much better and knowledgeable then lairs.. I mean lawyers

Let's see if I can help with any of your questions:

1. Don't know about Wa

2. The seller is always responsible for the loan you can walk or negotiate with the bank.

3. The best buyer would go get a new loan and pay off the old and you...In my prior post I should you how to sell.

4. If your new buyer is not giving you much cash and your holding a note a land K would work but there's other ways to go...

5. I'm a unclear with your question I'll get back to you on what it is your trying to accomplish ...

6. No get your name off it if you can cash out...If your holding a note as I said risky I would not transfer the deed... Have deeds, everything held in escrow with releases in case of failure waiting for all parties performance ...The escrow or collection company will let you know if your new buyer is failing so you can step in and cure any defaults....If it's a sub to the original seller is always liable for everything...You or your new buyer will pay the interest, taxes etc and reap the benefits..It's yours or the new buyers home hopefully they will be better than renters and make all repairs etc...

7. Like I said give me a shout

8. Attorneys are deal killers if you can avoid them do so

9. Eh..

Hi Christopher I not familiar with WA law but you can read my blog "how to beat the due on sale clause" which is for primarily California...At any rate here's a quick how I do it...

If the deed is not recorded i.e. it's held in escrow and certain safeguards are in place to protect the buyer and seller...Then you just do a vendor vendee transfer in other words your new buyer will step into your shoes of course he pays you for the privilege...

If the deed is recorded in your entities name preferably and LLC which by the way eliminates DF issues.. then you do a straight sale to the new buyer either he assumes your position with you holding a note etc... or goes to the bank for refining the loan..and pays everyone off..

Anytime you hold a note your at risk make sure all payment are made to the collectio company then you'll know if your buyer is late

I have been doing Subject to's for over twenty years and have never had a bank even look my way..Always use a third party collection company to service all the debt on the property this is common and arouses no suspicion on the banks side...

Any help write direct [email protected]

Hi Steve,

In the California high price range there's always creative deals out there...You just need a little cash to get the seller to walk...It would seem with all your friends and relatives who most likely have faith in you... a little group investment company would be in order..call me anytime.

Hi, I would certainly offer a lot less down no more than 10% to 15% and seller to hold the first for at least 5 years....Make seller the offer in writing ASAP as long as you have the down payment required see what he counters with if your rent estimate of $2100 a month is realistic sounds like a win deal

Yes I offer 5% right at the start I'm not quite sure what you mean "number of payments."

Take the 4%....That's a deal . I'm offering 5% to sellers and there taking it

Also the property is owned by an LLC with 3-4 members guess how many one time exemptions we can get out of that

Use an MLO it's not that complicated