All Forum Posts by: Account Closed

@Neil Sinha I play up and down between San Antonio and Austin and I've found that there are a lot of opportunities, even though the two markets are very different from one another.

Decide which kind of investor you want to be (SFR, Commercial, Land, Tax Liens, HML, Multi-Family, Notes, Fix & Flip, Buy & Hold, "Subject To", apartments, duplexes, assisted living, REOs, Foreclosures, Short Sales), etc.. Decide how much money you have access to, & the zip codes, city or state you want to focus on. That will determine the next step. Outline where you want to be in five years. Put it all in writing. Start working your plan. There are plenty of people around to help you each step of the way.

 I do that kind of thing as do other investors, but it is dependent entirely on how much of a down payment you have and how much income you have in order to qualify for Dodd-Frank requirements. It isn't always about credit.

@Kristen Moore WOW! Just started investing and you are already giving legal advice. Pretty cool! "by doing a lease option instead of a sale. Wrong."  Under Dodd-Frank it is unwise to have the Lease and the Option in the same contract. Since the Option is a separate agreement, how does that affect the exemptions of specified transfers? ;-)

@Todd Bowen When I was doing Fix & Flips I always asked the sellers what they thought needed to be replaced or upgraded if they planned on moving in for the first time. Then I would run comps. 

These days with Subject To, I just have them text me a picture of the kitchen, bathroom and roof so I can figure out if I'm interested enough to talk further. For most properties nowadays, I can see the house online and get the basics before I get into the car. One tip: I always look at the view of the front yard and back yard online just to give me an idea of how they maintain the property.

@Michael Bachmann Sometimes the deal isn't worth the legal exposure. If the seller is elderly, the court will side with them. Closings don't happen if all parties won't sign. You have two sellers who are fighting you. Ask them what they want in order for them to make things happen. I have it written into my business plan that only a percentage will close. See if they show up on the 14th as planned. Have escrow call them the day before to remind them.

@Don Chambers Congratulations. That's a great response for postcards. Most people that are interested today will still accept a call back tomorrow. ;-) I'm willing to bet there are some profitable Subject To deals in those responses.

Post the Pic of the postcard so we can see it as someone who receives it. We might be able to spot a item that you are not seeing.

@Andreas W. Glad I could be of service.

@Brian Egr Why are you looking for so much equity? Different people will respond depending on their circumstances. Because I am looking for Subject To, I need only 5% equity in a property to make it profitable. It is a totally different approach than yours but usually I am looking for houses that are not particularly well kept or perhaps were bought at the height of the market. I would think that most people with 70% equity would chose to use a real estate agent or stay put.

@Shamar Miller She apparently wants to sell rather than hope you will buy it in the future through an  Option. That's fine. I would much rather Own the property than have an Option. There are a few ways to do what you are looking for and it depends on whether there is an existing mortgage. At the very least, you want a Title Report to make sure you know what you are getting and an escrow company for closing.

1) If there is No existing Mortgage, ie: The Property is "Free & Clear", the attorney draws up the paperwork for a mortgage just like a bank would. You should write up a Purchase & Sale Agreement that meets your needs. If her attorney does so, it will favor her. The Purchase & Sale Agreement is presented to the seller and if they accept, the closing attorney uses that information to write up the Mortgage.

2) If there is a Mortgage, you can do a "Subject To" for the amount of the existing mortgage and your P&SA reflects that information and the closing attorney draws up that paperwork.

3) If there is a lot of equity, you can do a "Wrap" or a Land Contract to cover the principal and equity and to make payments to her and again, your P&SA reflects that information and the closing attorney draws up that paperwork.

This is all VERY GENERAL information. You need to know if there is an existing mortgage and also how much equity she has along with what she is trying to accomplish before you can know which way to go on this.

@Sterling Fields If the house is "Free & Clear" you can do a Lease Option with as many years on the Option as you need. You get the house, they get the cash flow. Or, they could do Owner Financing if they prefer. Keep in mind that if lenders can't find comps for you for the property, they won't be able to find comps for the next guy who wants to buy and the sellers will be waiting a long time. Help the sellers out. Make the offer as a Lease Option.