All Forum Posts by: John Garcia

This is a great strategy that has worked for a lot of people I know, The reason is that it forces you to delegate that responsibility to another entity or contractor. The best way to approach it is by creating relationships with contractors from now on. If you can find a reliable one, he would probably know all the different types of handyman or contractors in the area. One thing, a good contractor is usually always busy so the sooner you start developing those relationships the better. I will allow you to have a test on labor/material costs. Also, make sure your numbers are accurate with the time of the year and this market. 

Hope this helps. 

John Garcia.

Welcome Sharina!,

I am involved over Volusia, seminole, orange counties!

Let me know if you need anything. 

John.

Hi Dmitry, 

It is all based on what your exit strategy is on this deal. If doing a lease option, keep in mind you need to charge a premium at the beginning of the term AND the monthly payment needs to be a little higher than the average. The lease option is a maybe disposition strategy vs doing a hybrid ( which IS a disposition strategy unless buyer defaults on payments) because you don't know if the tenant will force the option and he/she is not obligated to do so. I think is better to do the lease option rather than the hybrid route because the benefit in the hybrid scenario is more to the buyer than to you. If the tenant decides to do the buy option lets say in year 2 or 3, that is time that you will have paid down the mortgage and your delta is higher. 

Hope this helps and congrats on joining! 

John. 

Hey Eric, 

When doing subject to the mortgage is easier than when doing seller finance. They same company that's been managing the mortgage you keep making those monthly payments to them, they'll facilitate with 1098 and monthly statements plus you have the option to receive emails of when is due or paid. You'll need to access to the sellers account to be able to see this. In a seller finance scenario is different and here is more recommendable to cover yourself for future retaliation. From what I see it looks like you have a hybrid; where is involved subject to the mortgage and a portion of the equity on seller finance. If you want to be hassle free you'll need to pay a fee for a servicing company (which varies from $18-$35/ month) because I haven't heard of a company that does this for free. 

Congrats on your property !, Hope this helps.

John. 

Hey Ted, 

are you currently renting this unit a a STR ? When you mentioned that its renting for $1050 on a new lease I'm sure if that's for a year lease or midterm. However, I think you should keep this unit and use insurance to cover the cost for the roof replacement and the incoming rent will help you pay the increment over the years. Replacing the roof will help the house qualify for FHA loans easier if you want to sell it. Also, If you sell it for 125k keep in mind that about 12k goes to paying all related with closing cost minus the balance you have on the mortgage so you end up with money for a down payment for a high interest property if you plan is to reinvest. Exit strategy can be refinance but I wouldn't recommend that with this interest rates or do a rent-per-room to bring in more cash flow.

Even if what you are cash flowing is about 200 bucks you have a great deal because you property is appreciating in value. 

Hope this helps. 

John.

Thank you Thank you Hamp!

Hello everyone!

I am a fan of BP podcast, I've been listening is the shadows for about 6 months and now I decided to connect with more people and serve with the best of my abilities. I'm an agent here and Florida and I want to utilize more creative finance with clients and for my self. 

Thank you BiggerPockets for the space to share. 

JG

Hi there, 

I am an Investor/Realtor in Florida and I want to utilize Subject to with my clients. For my self I do not have any issue because I know how responsible and trustworthy I am but here is what I am skeptical about: 
 If I ever connect an end buyer with a seller on a subject to agreement, how can I free my self from any responsibility. See, my fear is that I pitch this to a seller, and then the buyer defaults and seller comes at me with legal persecutions. 

I understand that agreement states that if at any time, buyer defaults, the property goes back to the seller so that is the piece of mind for them, but what if they want to go after more?

What is the best way to liberate me from any legal suits? 

Also, how would an agent get paid if I do this with a 0 down with an off / on market property(just taking over the mortgage)? Is it better not to use the license instead and charge a fee as a wholesaler? 

I now I can sound confusing but is because I am a little confused with it lol. 

Thank you. 

JG.