All Forum Posts by: Joseph Hernandez

@Lucia Rushton. Are you a wholesaler? Why should I reduce my fee? Do you think the deal is tight, that's why I should reduce it? 

@Mike Hern.Your correct. I forgot to include the wholesaling fee. I made a couple of mistakes. Below is the revised listing. Do you think it's probable that I have a deal? I will not discuss the loan with Penny Mac after reinstatement. In regards to the right to reinstate the loan, my attorney's advice was for a different state. I didn't know reinstatement laws varies from state to state. If the lender won't allow a reinstatement, will I still be able to sell the property to a cash buyer?I'm learning a lot from you. I appreciate your help Mike!

UNDER CONTRACT:

-Address: 105 Meadow Ln,, Deatsville, AL 36022

Subdivision, no HOA dues

city population: 1,800; county population: 91,450.

Two military bases nearby. Only minutes to Montgomery.

Subject to deal! No loan or down payment needed. Perfect for an investor that doesn’t like hard money loans. Don’t need to buy property for all cash. No need to pay sky-high interest rates (take over seller’s interest rate-only 4.875%), no need to pay any points, no need to pay outrageous closing costs and wants a fast close.

Type of existing loan: VA

Property status: pre-foreclosure

Value: $320,000

Purch price: $272,000* Buyer to pay seller arrears of $60,000+ $4,000 closing costs + $14,000 wholesaling fee. Total estimated out-of-pocket amount needed: $78,000. Purchase price includes 60k arrears.

*Arrears and closing costs are estimates. I’m waiting for payoff amount from seller’s lender. Final out-of-pocket costs +/- $5,000. A more precise number figure will be given by Jan 17.

Estimated equity: $47,000

Existing rate: 4.875%; 30 yr. fixed

Existing PITI mortgage payment: $1,446 mo.

Rental estimate: $2,250

Property details:

• Single family
• 4 bed/3.5 bath
• Very good condition, minor repairs only
• Yr. built 2006
• sq ft: 2,428 per appraisal report in 2013 when seller purchased property
• Huge lot: 77,417 per appraisal report in 2013 when seller purchased property

Close to shopping.

Cash only. No hard money, private loans or any other type of financing. NO EXCEPTIONS.

I’ll be holding a viewing tentatively next Wed. Jan 17 or Jan 18 time TBD. Will update you on exact date and time on Tuesday. Don’t show up at seller’s property any other day or time. Bring your contractor/inspector because there won’t be another showing as time is of the essence. Call/Text Joseph w’ any questions @ (562) 486-7999.

Non-Refundable EMD of $20,000, NO EXCEPTIONS. Escrow must close by Feb. 5, 2024.

Disclosure: Wholesaler is a CA licensed real estate and mortgage broker with the DRE. Wholesaler is not representing seller or buyer in any way, nor is he utilizing his license to broker above transaction. Above data was taken from public records, appraisal report supplied by seller, when seller purchased the property, verbal information from seller and research from various websites. Buyer to perform due diligence to verify all information pertaining to above stated property.

@Dustin Woodley. Of course I will do a title search. 

Hello. On average, how long does escrow take to close for a pre-foreclosure, sub to transaction? I'm hoping I can find one that can close in 10 days in Elmore County, AL. Thanks.

@Mike Hern. Thanks for the great info. I really appreciate it. No, I won't waive my wholesaling fee. I don't work for free. Property is owner occupied. He already found an apartment and is ready to vacate prior to closing. He told me he does not need any money from the sale. How can the seller not accept the reinstatement? My attorney told me that a borrower has a right to pay off all arrears and the property will be in good standing as long as it's paid before the auction date. However, I didn't mention that it's a sub to transaction because the seller told me yesterday he'd accept a sub to. I already called the lender and this Monday they are emailing me the payoff demand. I already have a current mortgage statement, that's how I got the arrears amount.Lender is Penny Mac. Why do I need to tell them i'm doing a sub to? Do you think there's a good probability an investor will purchase the property? The amount of equity is less than what most investors prefer. However, roughly $750 monthly gross rental profit is not bad for a 54k investment.  

@Andrew Postell. Yes, it's under contract. I stated that I have an assignment in the first sentence. With all due respect, you didn't answer my question. I want to know if there's a good chance that a buy and hold investor would let me know if it's a potential deal. There may not be enough "meat on the bone" in reference to enough equity. However, on the plus side, gross rental income is $700 a month and the seller is willing to accept a sub to, so there's no closing costs.If you were in the market to purchase a buy and hold, would the numbers be good enough? Thanks.

Hey everyone. Newbie wholesaler. I have my first assignment. I'm not sure if it's good enough deal. Please let me know if you think it will sell. The exit strategy will be buy and hold. Below are the facts:

-address: 105 Meadow Ln, Deatsville, AL 36022

city population: 1,800; county population: 91,450. Two military bases nearby.

Value: $300,000

pre-foreclosure

Purch price: $250,000. (Loan balance: $190,000 + $50,000 arrears + $10,000 assignment fee = $250,000.)

Sub to deal. existing rate: 4.75%

Mortgage payment is $1,450 and rental comps are going for about $2,450.

• Single family
• 4 bed/3.5 bath
• excellent condition, built 2013
• sq ft: 2,420

Cash buyer only. Sale date is Feb 6

Bottom line: 50k investment for $1,000 month rental income. Pls let me know if you were in this market for a buy and hold, would it be a good enough deal?

Hi. I'm trying to wholesale a sub to pre-foreclosure in a small town in Alabama (36022). Population is 1,500 and county size is 90,000. Equity is about $47,000 and arrears is about the same amount. Rate is 3.875. PITI is $1,400 and rental payments nearby are about $2,400. As an investor, would you consider purchasing this property if you were in the market to buy a rental property in this area? i'm wanting to know if I should pursue this lead because the city population is only 1,500. Thanks.

@Laura Krukowski. Is the contract the exact same one as the agents use? If so, i'm not a licensed agent in NY. In addition, wholesalers are not supposed to act in the capacity of a real estate agent in most, or all states. Do you know if other wholesalers in your state that are wholesaling, but not a licensed agent? Thanks Laura :)

@Mike Hern. I read somewhere that in attorney states, the lawyer must overlook the contracts for fairness to all parties. Do you know anything about this? Thanks.