All Forum Posts by: Johnathan Cummings
Johnathan Cummings has started 8 posts and replied 16 times.
Understood, this make a lot of sense. As a buyer, it doesn’t seem like a whole lot of risk from what you’re saying.
Quote from @Scott Johnson:
Quote from @Johnathan Cummings:
I have a subject to deal that I can pursue, but my broker tells me that subject to is mortgage fraud. Basically if the current owners die, go into bankruptcy, or something else, I would lose the property and it’s not worth the risk. Curious what the BP community thinks.
1) Your broker doesn't understand Sub-To deals (most of them don't)
2) Read the PA state laws from your General Assembly regarding Sub-To deals. The secretary of the Legislature can help you find them or just search them on their web site
3) Those are real challenges with Sub-To so educate yourself on them before pursuing a Sub-To deal
4) Your state law will outline whether it's considered 'fraud' or not. In NC it's not fraud, it's just 'not considered good business' and 'sus' by our legislature. Totally allowed, we just have to put a disclaimer on our contracts that they approved.
Thank you for the response, I’ll definitely take a look. I appreciate it!
I have a subject to deal that I can pursue, but my broker tells me that subject to is mortgage fraud. Basically if the current owners die, go into bankruptcy, or something else, I would lose the property and it’s not worth the risk. Curious what the BP community thinks.
Post: Need an attorney in the Lehigh Valley area familiar with creative financing
- Posts 18
- Votes 3
Hello All, I'm looking for an attorney to aid in some creative financing deals (Subto, Lease options, seller financing, etc). Are there any recommendations for one in the Lehigh Valley Pennsylvania?
Post: Evaluating deals with investor
- Posts 18
- Votes 3
Hello Paul,
Thank you for your advice, I really appreciate it and will be searching for a mentor! Yes, I am in a very fortunate situation that I'm sure many would love to have, but yes I'm trying to do it right and to the best of my ability.
Thanks again!
John
Post: Evaluating deals with investor
- Posts 18
- Votes 3
Hello all, I’m fairly new to real estate investing, but I’m looking at buying some properties with a partner. I currently have a partner who can invest, but am having difficulty finding deals. The way I’m structuring our agreement is that he will get an 8% preferred return paid quarterly. Once the preferred return and expenses (including reserves) are paid I would get the remainder what. I’m finding is that most if not all of the deals end up with me owing money once all is said and done. Is something wrong with my structure, am I being to conservative, or is it that I’m just not finding a good enough deal at this point.