All Forum Posts by: Brian Fouts

I wanted to reach out to wholesales and other investors in the greater Seattle Area that are currently marketing for deals. (Don't we know it's ALL about marketing and the numbers!). We are currently successfully working with a couple investors in the area and would like to connect with others in order to help everyone get the most out of potential leads.

Most wholesalers or investors seem to be looking for properties to get under contract at 60-70% of market value, but many potential sellers/leads do not fall into that category. They owe more than their home is worth or owe too close to the market value to make a wholesale or a fix/flip scenario worthwhile. These are actually the type of properties that I am looking to make offers on. We also don't chase many sellers/leads that fall outside our focus area, but we do pass these leads/sellers on to other investors that we are working with. This allows everyone to capitalize $$ on leads that may have otherwise gone nowhere.

Anyone local who would like to connect, let me know!!

Happy Investing!!

All very good and valid points regarding Sub 2 and that is how I do them as well. Complete disclosure is how I operate. I do sell to end buyers, but I Owner Finance end buyers, thereby staying in the middle of a Sub 2 transaction (do not wholesale them) and am still responsible for the primary loan/payment. Also, I notify the lender.

I have recently let go of two potential Sub 2 deals that just didn't pencil out, so yet, not every one is going to work.

From my experience, trusts can go hand in hand with Sub 2, but not often. It is a method to avoid the lender calling the note due, but I have not yet seen that occur.

There are coaches out there that can introduce you do Sub 2, but if you are starting out and looking to make some revenue, wholesaling is a great way to start. Sub 2 requires specific contracts, negotiations, and paperwork (at least for me) that are not common, whereas a state purchase and sales agreement can be used for wholesale deals with an assignment or something. Easier. There are a lot of ways to invest in real estate, Sub 2 is probably less common from what I see, but they are all about Marketing, Marketing, Marketing...

For repairs, it is best to get a few quotes. If no structural repairs or major exterior (roof, siding, etc.), then it is just surface repairs and that is better. The floor dips and water damage to ceiling would be huge concerns of mine.

This is my opinion, not advice or legal council. Subject 2 is a type of investing where the investor (or can be home buyer) purchases the home from the Owner "subject to the existing financing" remaining in place. Depending on how it is done, the investor or buyer becomes contractually and legally responsible for the original loan (monthly payments), although the original Owner still is listed on the Mortgage. The title (deed in trust) transfers to the new buyer or investor with the original lender and buyer listed with lien rights. This allows buyers/investors to get properties for good terms or low purchases prices depending on the underlying loan without getting bank financing or typing up cash. The contracts and paperwork for sub 2 deals does not seem to be typically readily available or common as you have to have a real estate attorney that is familiar with them or other means of processing the deal.

On a similar situation, I took deal sub 2, cleaned up the property, then marketed it Owner Financed to both buyers (potential home owners) and other investors (fix and flip) as an investment property that comes with financing, which can be attractive.

Do a forum search for Sub 2 or subject to and you will get quite a few results.

Welcome, I am in the Seattle area as well and am mainly focused on Sub 2 deals with different exit strategies. I work with other investors who are doing other types of investing to allow us all to be able to offer more options to sellers. Working great so far!

Welcome to the site! I am in the Seattle area and would love to meet up when you get here. Definitely a big area here for real estate. Gather info, ask questions, and get your success formula/plan in place and implement it when you are ready! Thanks for your service!

Based upon your numbers, he owes less than what the home is worth. If the value is $50k and he owes $30k...

Is the repair value you mention on top of the $50k or is it part of it? Example, FMV when fixed up is $50k, less repair costs of $25k, equals a current value of $25k (i.e., less than he owes)?

I would snatch this one up in a second, but would do so utilizing Sub 2 or other similar type offers.

I believe it would only be a shortsale if he is in a distressed situation, such as missing payments, tried to sell it with no offers, etc.

Sure, what details are you specifically looking for that are not in the postlets link? Asking $95k with $20k down (negotiable), terms are as agreed. Home is 2 bed, 1 bath, separate shop/shed, rent rates in area are approximately $850/month comparable.

Home for sale in Tacoma Washington, no banks needed as home comes with financing! Terms negotiable. Property could be a fix and flip (previously was rental property, no tenants currently), rental property, etc.

http://www.postlets.com/repb/9404399

Welcome! I work with wholesalers often, although I am on the other side of Seattle than where you are at. Welcome to the site!

Welcome and congrats on the contract. I would get recommendations from other investors with regards to the contractor and get references from them at a minimum.