All Forum Posts by: Ken M.

@Corey Bogaski Subject to or not seems like the deal doesn't make sense numbers wise. Maybe if you are getting it at $155k and don't have to bring any add'l funds to the table. What is the interest rate on the loan and how far is it on the amortization schedule? Also would depend on location. I think sometimes it's easy to get sidetracked on the deal itself when subject to or seller finance is involved but you still want to make sure it's a good deal at the end of the day.

The interest rate on the loan is 5.75%. I hhonestly have no clue where its at on the amortization schedule. I didn't even think to ask that so I will figure that out. The property is borderline carrick/brentwood. So, I don't think it has a great chance at appraising over 225k unless I put a little bit of work into it, which I'm not against. But, I do agree its way over priced. I am trying to get my next rental with as little out of pocket as I can. I definitely do not want to get side tracked though which this post has helped me jump off of that cloud a little bit. The rent is there but just trying to figure out a way to make the numbers work so both of us are happy and can get the deal done.

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Your comment: "But, I do agree its way over priced."

I don't think I can help on this one. I only buy "subject to" but I never pay MLS price let alone more than I figure the property is worth, minus repairs. There are too many other properties to choose from.

0 Votes

Pittsburgh, Pennsylvania

Quote from @Edilson Gomes:

Hi all,

Found an older home and really like the location, style and yard. It checks all the boxes for what I was looking for and I think it has a lot of potential. I am in the NE so older homes are common. My offer was accepted at about 500K which was just a few thousands dollars below asking price. This was higher than I wanted because the interior needs remodeling but the seller didn't want to budge on the asking price (owner passed away and the kids are selling). The Zillow estimate for the home is around 500k. The inventory in the area is pretty low right now so I like to move forward with the deal if I can but also don't want to screwed. Looking to get some advise on how serious these issues seem to educate myself before speaking with my realtor and the seller's agent. Should consult with some contractors before proceeding ? Should I ask the seller to fix the issues or offer concessions? What if they refuse? TIA

Basement
Evidence of water penetration and dampness noted at time of inspection. Spalling mortar observed on foundation. Foundation has been painted, and moisture has been trapped behind paint causing it to crack / peel. Also, observed water stains on foundation. The source and amount of water penetration may not be observable at the time of inspection. Consult the owner for a historical perspective regarding previous water penetration. Installation of sump pump system is not to professional standards. Observed no sump cover, no check valve, no dedicated outlet, substandard discharge line, and pump is improperly discharging into town sewer. Consider installing a proper, permanent sump pump system which should include a proper sump with a cover, a pump, a permanent discharge line with a check valve and a dedicated sump pump outlet.

Plumbing System
Accessible Water Supply Lines:
Corrosion and patina observed on fittings and valves. Anticipate repairs and upgrades. Poorly supported and loose water lines noted. Properly secure lines at regular intervals. Also, unused lines have been left opened with only valve stopping water flow. If valve fails, accidental flooding may occur. Consult a plumber regarding repair, upgrade, scope of work, and associated costs.

Accessible Drain/Waste Lines:
Type: Cast Iron, Copper
Please note: Cast iron waste lines have been painted over. This hides true condition of waste pipe. Further evaluation is recommended. There was corrosion and rust on accessible waste lines. Monitor for leaks and anticipate future upgrade.

Central Heating and Cooling
Condensate Components
Components: Gravity Drain Line, Condensate Pump,
Secondary Drain Line . Observed leak in condensate. Repair / replace where needed.

2nd Floor Back Bedroom
Wall Type: Plaster
Water stained wall areas observed. Consult seller for history. This, most likely, occurred prior to installation of new roof (replaced in 2014 and received A/B rating.) Further investigation is recommended. Further evaluation may reveal concealed damage and other related water penetration issues.

Garage (detached)
Moss/Lichen build up observed on roof. Roof surface needs replacement.

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Your comment "The Zillow estimate for the home is around 500k."

A Zillow estimate is an average of the recent sales in the area regardless of condition and typically assume the house is MLS ready. That means "kept up". It sounds like you bought something less than "kept up".

Everything can be fixed for a price. Water leaks are the most serious to me. I didn't see where you mentioned if the water lines are lead, galvanized iron or copper. I would replace all lines with copper. I didn't see what electrical but I would replace with 200amp copper romex lines. I don't like aluminum wiring or knob & tube. The electrical uses from 90 years ago are very different from todays usage.

If the walls and attic are not insulated, I'd do that for sure.

I've done a bunch of houses built in 1900 - 1920.

0 Votes

Quote from @Bryce Langford:

Hey BP fam,

We’ve all felt the shift—properties sitting longer, buyers getting cautious, and the "easy wins" becoming fewer and farther between. The market is definitely cooling in a lot of places.

Curious how everyone is adapting. Are you:

Holding more cash?
Changing your buy box?
Getting more creative with financing?
Doubling down on long-term holds?
Sitting on the sidelines for now?

Would love to hear how you are playing this. What’s working, what’s not, and where do you see things going as we head deeper into 2025?

Let’s share and strategize together 👇

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I'm just buying deeper and offering less.

0 Votes

San Antonio, Texas

Quote from @Corey Bogaski:

Whats up everyone,

I am looking for info or feedback from anyone that has done a subject to deal. This would be my first one, i have never done or been apart of any subject to/seller financing deal. I would still like to have an inspection contingency before actually taking over which seller is ok with..

The numbers are negotiable, but this is 215k asking, 30k down, assume the loan at ~155k ($1200/month) and pay the difference of 30k in 2-4 years after the refi and paying off the loan. Top unit is 3/1 currently rents for $1300, bottom unit is 1/1 (vacant) and market rent is $750-850. Property is currently worth ~190k from comps i have pulled. Taxes are around ~$2500/yr.

Does anyone have any recommendations on what to do and how to do it? Any good Real Estate attorneys in the Pittsburgh area or can this be done without a lawyer. All feedback is welcomed and thank you in advance!

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The key to a successful Subject To is having plenty of money and the ability to refinance the property if the note gets called.

The process of buying the property doesn't change considerably. But the ability to recover from the potential down side and the consequences of missing payments means it's likely attorneys get involved.

You definitely don't want that. Have reserves and a way to pay off the note on short notice.

1 Vote

Pittsburgh, Pennsylvania

Quote from @Kelly Sennholz:

Quote from @Ken M.:

Quote from @Scott Trench:

I know that anytime Trump's name is mentioned, someone gets triggered. Either the post is too anti-Trump, or too Pro-Trump.

Let me be clear - I do not condemn Trump's policies or necessarily know whether they will be positive in the long-term future or not for real estate investors. Further, "Downward Pressure" may be "bad" for investors, but it may also be "good" for renters - his policies, if I am correct, may negatively impact housing prices and rents, to the detriment of investors and to the benefit of renters, in the near-term.

"Positive" or "Negative" impacts are relative. I write from the standpoint of a real estate investor, and I perceive Trump's actions to be threatening to near-term real estate investment returns, on the whole. I believe this because I think that on the whole, his first two weeks of actions are likely to:

- Have zero no impact on near-term supply (deliveries for single family and multifamily homes 2025 are a result of actions put into motion several years ago)

- Put upward pressure on interest rates: Trump's demand that the Fed lower rates will have absolutely no effect, other than providing a cheap source of easy social media clicks and engagement for real estate pundits. However, the implementation of tariffs, or just the threat of tariffs, is likely to influence rates, by impacting inflation numbers, and this influence may come quickly if prices for many common goods and services and raw materials rise in anticipation of tariffs, or in response to their implementation.

- Put downward pressure on demand: I personally believe it is unlikely that Trump actually deports millions of illegal immigrants who have settled in the United States. This, to me, seems impractical, and a PR nightmare. It's possible he carries it out, but I believe it unlikely. I believe it is far more likely, however, that the effect of his stance and actions materially lessens the flow of new illegal immigrants. This will slow new demand for rentals. In the event that any meaningful percentage of 10-15 million (estimates seem to vary widely depending on which news source you prefer) current illegal immigrants are deported, real estate investors will have a big problem as vacancies soar. It is likely that a huge percentage of that 10M-15M illegal immigrant population are renters. Regardless of whether investors currently rent to illegal immigrants, their competition in the market likely does.

- Put Upward pressure on real estate operating costs: Increased costs for raw materials and supplies, and the likely increased costs for labor involved in many real estate related CapEx and maintenance projects signal the risk of increase in costs for real estate operators.

If there is no impact on near-term supply, a modest slowing of inbound (illegal) migration, more reason to believe that the cost of many goods and services will increase, and real reason to believe that inflation triggered by something other than an increase in the money supply (namely the cost of specific goods and services that are NOT housing going up, which comprise the CPI) will force the Fed to raise rates, this, on the whole, is not good for real estate investment returns.

No, I do not think that there will be a housing crash or a massive drop, nationwide, in rents and prices. Yes, there will be offsets (do Tariffs and slowing illegal immigration increase wages for some workers - likely yes). But, I believe that the actions of the first two weeks should give investors, on the whole, reason to incrementally revise down their expectations for growth in prices or rent growth in 2025. There may also be incrementally better probability of deals, as investors who are dependent on rates coming down may find their hopes disappointed.

I think 2025 will be, by and large a buyer's market, and that the new administration's policies only, and again incrementally, make me more confident that this will be the case.

What do other investors think? Do you agree or disagree?

Keep in mind that most illegals are / were given free housing in hotels, group homes and many families living in the same space. They are not / were not instrumental in prices going up or responsible for the housing shortage.

Builders just haven't built enough houses to keep up with natural growth. A lot went out of business.

I think the Trumpster says what he means and means what he says. I can imagine there will be free transportation for any illegal that finds it in his best interest to head back to wherever.

It's only been two weeks, wait until the machine gets churning and things like dedicated passenger trains to the border are available & deporting more.

I think the most effective arguments Trump has, is that since many of the folks are very loyal family members, they will self-deport when grandma or grandpa are deported.

And, if they are told they can not reenter the country, for 20 years or so, if they don't self deport, with a permanent bar if they get deported. I believe that's an effective message.

And if the government removes the app that the illegals use to get food, shelter, money and legal advice, then it becomes a whole new ball game.

Regulations are slowing building down. And what I'm seeing is that many would be sellers think it's still 2022 when prices were higher. It will be a year or two before they emotionally catch up to reality and list at reasonable prices.

1. I believe it is not only well proven truth that trump says whatever comes to his mouth at the moment without thinking and only uses forethought if he can damage others. Now, the truth is, right now both Wall Street influencers and top right wing legislators are stating that he is out of control, they have tried to stop him, and he's not listening to anyone with sanity. That is well reported. Learn to google or have your grandkids teach you.

2. There are massive changing in demographics on the mid term horizon which will greatly impact housing supplies for renters.

3. "Dedicated 'passenger trains' to the border" is such a chilling euphemism you toss out with such dark cheerfulness on this day that experts have firmly declared that we are now a nation that sends totally innocent, uncharged, untried, people to foreign death camps, "CONCENTRATION CAMPS" by definition, and here you are talking enthusiastically about the trains. You just are stunning, I will save this to send my response as a reminder to my historian friend who is collecting comments like this.

4. Your desire to send all dark skinned people out of the country (which is geopolitically - and for the real estate biz as a whole- the most STUPID THING a leader would want to do) is also duly and horrifyingly noted.

5. Your fervent insistence that people with dark skin don't get to live here and don't get ONE SINGLE DOLLAR of your money, one single DROP of your food or drink, has been a classic part of white male supremacy for hundreds of years. If you want to learn more about this, my friend, I do hope you will read the book written by Heather McGhee called "The Sum of Us." She is an excellent writer and helps people like you understand the massive financial, physical, educational, and moral damage that those beliefs have incurred on WHITE people. You really should read it. Your comments are so classic I swear I saw them in the book.

6. You and I agree on much regarding how regulations should happen and how the inefficiency of government negatively impacts us but we will NEVER be able to do anything about it as long as you spew that dark and foreboding nonsense.

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It'd be nice if you would just tell us where you get your information instead of making things up.

Here's something to enlighten you. Notice, it's 300,000 missing migrant (illegal) children. Did they come to a better life becoming part of the sex trafficking?

SWF — a nonprofit organization targeting sex trafficking — has been tracking down sex trafficking rings in Texas

The DCNF first contacted SWF while investigating the more than 300,000 missing migrant children under the Biden-Harris administration. Whistleblowers and experts have warned that many of these children may have been trafficked into the U.S., yet updates on their whereabouts remain scarce since reports first surfaced last year.

“I think our typical [age] range in the rings is probably 14, 15. We know there’s 12- and 13-year-olds.

https://dailycaller.com/2025/04/15/sex-trafficking-texas-bor...

2 Votes

Denver, Colorado

Quote from @Rick Albert:

What also isn't considered is all of the foreclosures that were SUPPOSED to happen in 2019-2020 that were all of sudden halted because of COVID. This could just be a catch up from those who were supposed to be foreclosed on years ago.

The reality is many Americans have equity in their homes. They are more likely to sell before heading down the foreclosure path. That would make more sense for a market correction rather than foreclosures.

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Your commnet: "They are more likely to sell before heading down the foreclosure path."

I'm not so sure anymore.
I just bought a property and The guy had 3 loan mods. One for 2022, another for 2023, and another in 2024. Of course he had yet another active/pending NTS/Foreclosure sale date beyond those for 2025.

We're told not to feed the bears at Yellowstone because they become dependent on it and they come back for more. This teaches them that you really don't have to work for it anymore. Then things change and they starve.

0 Votes

Quote from @Kelly Sennholz:

Quote from @Ken M.:

Quote from @Kelly Sennholz:

Quote from @Ken M.:

Quote from @Scott Trench:

I know that anytime Trump's name is mentioned, someone gets triggered. Either the post is too anti-Trump, or too Pro-Trump.

- Have zero no impact on near-term supply (deliveries for single family and multifamily homes 2025 are a result of actions put into motion several years ago)

I think 2025 will be, by and large a buyer's market, and that the new administration's policies only, and again incrementally, make me more confident that this will be the case.

What do other investors think? Do you agree or disagree?

And, if they are told they can not reenter the country, for 20 years or so, if they don't self deport, with a permanent bar if they get deported. I believe that's an effective message.

Your idea that the "illegals", as you call those humans, were the issue misses his point of the article, entirely. Around the world, I would say a majority of nations have "Do not travel" warnings about the United States due to potential violence, multiple innocent people being jailed at the border for no reason for WEEKS without notice to their family, etc, and the inability of even U.S. citizens to return to their own nation without onerous and fear inducing tactics by federal agents.

Travel to the U.S. has plummeted, particularly from Canada, U.K. and others. No one wants to be put in the path of this. Nations around the world are reforming trade agreements that eliminate the U.S.

It will impact rental numbers in a large way. Not to mention the many millions of top middle class folks leaving the country permanently.

Well there is that. He likely fixed the "tight housing" situation.

Last I looked, even under the Biden administration, coming into the country without proper permission was illegal. If someone will break that law, they will willing accept food stamps, free housing, voter ID, and on and on. Not spewing hate when you speak the facts. You just have a warped perspective on the situation.

Do you realize how violent coming to the border is for women and children? They pay the price and you encourage it.

How many of these people have you taken in and fed and clothed and protected from harm.

It's a very serous safety issue.

It is seriously jaw dropping that a) you think YOU are the authority on who should or should not be in our great nation, b) that you think it is possible this behavior could be a "positive for the economy"and further, c) trump said he has the right to arrest and jail anyone for any reason he wants to, without a trial, having never committed any crime. We have hundreds of innocent people now in a U.S. Concentration Camp, being tortured. Innocent people grabbed off of the streets. If you think that is going to improve real estate here, I highly recommend you speak to someone who lived in China during Mao Zedong and ask them how the economy worked, how agriculture worked, how housing worked there. Seriously.

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And you again fail to cite your source. You're wasting your breath making allegations that have no basis.

You mention, China. We aren't discussing China. I don't own real estate in China, you've never been to China, you have no idea how things in China are run.

Why are you bringing China into this? Very, very, strange.

Have you even been to another country?

2 Votes

Denver, Colorado

Quote from @Kelly Sennholz:

Quote from @Ken M.:

Quote from @Scott Trench:

I know that anytime Trump's name is mentioned, someone gets triggered. Either the post is too anti-Trump, or too Pro-Trump.

- Have zero no impact on near-term supply (deliveries for single family and multifamily homes 2025 are a result of actions put into motion several years ago)

I think 2025 will be, by and large a buyer's market, and that the new administration's policies only, and again incrementally, make me more confident that this will be the case.

What do other investors think? Do you agree or disagree?

And, if they are told they can not reenter the country, for 20 years or so, if they don't self deport, with a permanent bar if they get deported. I believe that's an effective message.

It will impact rental numbers in a large way. Not to mention the many millions of top middle class folks leaving the country permanently.

Well there is that. He likely fixed the "tight housing" situation.

3 Votes

Denver, Colorado

Quote from @Chris Seveney:

@Russell Brazil:

Quote from @Ken M.:

First, properties always go up in price, right? Heh, heh, heh

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"The number of properties foreclosed in March as well as the first quarter of this year registered an increase amid elevated interest rates, according to real estate data company ATTOM."

This continues the month-over-month rising trend seen in February and January. For the first quarter of 2025, there were a total of 93,953 filings, up 11 percent from the fourth quarter of 2024.

“Following three consecutive quarters of decline, foreclosure activity ticked up in the first quarter of 2025,” ATTOM CEO Rob Barber said, adding that there was “notable growth” in both foreclosure starts and completions.

The hurricanes affected parts of Florida, North Carolina, South Carolina, Tennessee, Georgia, and Virginia.

Fires in California

Meanwhile, the Department of Housing and Urban Development announced this past week that it was extending foreclosure relief to more than a million borrowers of Federal Housing Administration (FHA) loans recovering from the impacts of Hurricanes Milton and Helene.

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It starts small, and that sound you hear is the can being kicked down the road, eventually It's like the coyote and road runner, "oops gravity works". Watch the foreclosure starts.

Being in the NPL space foreclosures are still down buy FHA defaults are skyrocketing. The other hidden component that many of these numbers do not consider is the BK filings. Once someone files BK the loan is technically no longer in default and no longer in foreclosure so many hide those numbers - which with the amount of borrowers who have equity - BK is there better answer - so I take these numbers with a grain of salt as I actually believe they are higher than what is being noted but at same time they are getting back to normal levels.

What I will say is its not as much about the numbers but the trend, and we are trending upwards which puts downward pressure on pricing - so something investors should consider.

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I just bought a pre-foreclosure and found something I've never seen in 30 years of buying pre-foreclosures.

The guy had 3 loan mods. One for 2022, another for 2023, and another in 2024. Of course he had yet another active/pending NTS/Foreclosure sale date beyond those for 2025. ATTOM Data reports he is not alone.

That is just accumulated unpaid debt that makes it hard to make a deal work.

At some point, all this collapses.

That tells me there is a lot of stress in the market when lenders defer rather than complete foreclosures.

2 Votes

First, properties always go up in price, right? Heh, heh, heh

The hurricanes affected parts of Florida, North Carolina, South Carolina, Tennessee, Georgia, and Virginia.

Fires in California

3 Votes

All Forum Posts by: Ken M.

Ken M. has started 62 posts and replied 799 times.

Post: Duplex - subject to

Post: Home inspection came back. Are these big issues for a 90 years old house?

Post: The Market Is Cooling – How Are You Shifting Your Strategy?

Post: Duplex - subject to

Post: Trump Policies Will Put Downward Pressure on Real Estate Rents/Prices

Post: 35,000 US Properties Foreclosed In March - Did You See That Coming? I Did, Here's Why

Post: Trump Policies Will Put Downward Pressure on Real Estate Rents/Prices

Post: Trump Policies Will Put Downward Pressure on Real Estate Rents/Prices

Post: 35,000 US Properties Foreclosed In March - Did You See That Coming? I Did, Here's Why

Post: 35,000 US Properties Foreclosed In March - Did You See That Coming? I Did, Here's Why