All Forum Posts by: Account Closed

@James Cheung Id suggest skipping the BP forums on this one and go straight to your county's DMV/licensing office and ask for procedures to remove/claim abandoned vehicles. Every state/county is going to be different, so might as well get it straight from the horse's mouth so to speak. Good luck, and if the cars are anything cool/classic/unique give me a shout!

@Paloma R. I was hesitant even to upgrade to Plus, but did so last month to list a wholesale deal on the marketplace. Got a full price offer within 48 hours, pocketing me $9,500 american cash dollars on the deal from a buyer i linked up with on BP.  Pro here i come! 

A good credit report isn't going to pay me my rent. Proof of income shows me where my rent money is going to come from each month. 

And always ALWAYS call potential tenant's previous landlords! I scored 6 subject to deals last year from throwing out a "Hey, are you looking to sell any of your rentals?!" at the end of the call. 

A third party authorization can be filled out by you and the seller allowing you access to discuss the sellers account. You can use a generic one, get one from a lawyer, realtor, or check the BP File Place. Ive also had lenders provide some information over the phone so long as the seller was on the line (3 way call) and was able to verify their identity. 

As far as transparency with the lender, I wouldn't tell them anything. Get the information you need to make the deal happen. You can be transparent with them, but i would keep your contact with them to an absolute minimum and definitely avoid using the terms "subject to" or "im the owner" etc etc.  

If you use the Land Trust, your conversations with the lender should be along the lines of "Hello, my name is @Rich Hupper , and I have a Power of Attorney/3rd Party Authorization/Im the trustee for matters associated with Mr Seller's property at 123 Main st." If you tell them you took the property subject to the existing loan, you significantly increase your odds of them triggering the Due on Sale Clause.

As far as payments go. Chances are you don't need to call them to set that up/discuss it. I havent had to speak to a lender to set that up, yet. After closing I simply go to my account, set up the mortgage account in my bill pay, and forget about it. The lenders don't care where the payment comes from. They only care that it comes on time and in full. 

@Rich Hupper 

As far as convincing the seller goes, it sounds like they're in the right position for a Sub2 deal.

Get a third party authorization to speak to the lender to get a current payoff amount. Ask how much it would take to bring the loan to current. DONT tell the lender you're planning to take the property subject to. They tend to frown upon such shenanigans. If they ask, you're planning on buying it, and thats it. 

As far as selling the sellers on the idea. Tell them: "Ill buy your property completely as-is for the current principle balance leaving the existing financing in place until i can get the property renovated and sold."  Be upfront and explain to them that the loan will stay on their credit for the time being, and although unlikely, there is a possibility that the loan could be called due (have a exit strategy for if this occurs!) The benefit to them is that they get to walk away free and clear immediately. 

If they agree with it, find yourself a good investor friendly attorney. We use Land Trusts set up in the seller's name "the Smith Family Trust" which minimizes exposure to the lender..unless you give them reason to dig deeper (such as pestering them with phone calls).

As far as booting the tenants out before you close the deal.. i doubt the sellers would go for it. If they've let the property go, it's unlikely they're going to want to spend the time/money/effort to boot the tenants if they're facing foreclosure anyway. 

Take a good look at the numbers on this one. Does it cash flow enough to make it worth your time? Will you have any equity left at all once you get the sellers caught up and then rehab the place?

Just because someone wants to hand you their house, doesn't make it a good deal.

Anymore questions feel free to throw em out there! Hope it works out for ya.

Before you spend a bunch of time analyzing a deal, have the seller give you their cash number; ask how much cash they would take to sell the property as-is, today. 

If they're truly motivated to sell, they'll have a number in mind and will tell you and you can negotiate down from there. If they won't give you their cash asking price, it's likely they're not really that motivated and are just trying to out-negotiate you. 

Remember in the world of negotiating: "He who speaks first, loses." 

@Steve White Try posting it in the BP Marketplace? The first property i listed on there went under contract and sold with a full price cash offer in under a week. It's definitely worth the few $ for a plus/pro account. Good luck!

@Michael Mearlon

I've got a few questions for ya!

How many RE deals have you closed since you started with Renatus?

How long have you been involved with Renatus?

How much have you personally spent on your RE education with Renatus? 

As far as breaching some sort of contract regarding costs, their course costs are on their public sites, so now worries there! Just interested in how much you've personally invested and how many RE deals you've done/how much your return on that investment has been? Thanks for you time!

@Richard Francois Im sorry, but what does their being Jewish have to do with anything?! Seems like an unnecessary tidbit of information that doesn't need to be in your post, or in any post for that matter. 

Seller is a retiring, out of state absentee owner who called looking for options to sell a 1572 sq/ft 3/2/2 with damage from previous tenants (needs appx $7-8 worth of repairs)

Comps are at $120k

Seller owes 117,235

PITI: 720

Potential rent (RTO): $925/mo w/ $5000 Option Fee @$125k PP (Hooray for tax time!)

In it’s current condition I was going to pass on it, as I didn’t want to dump money into a no-equity property and best case scenario break even when/if a tenant buyer gets financing and buys it. So I decided to swing for the fences and see what the seller would concede to.

I asked for and Seller agreed to pay $5000 at closing towards repairs on the above property AND THEN also offered to sell her other move in ready rental Sub2 as well:

Comps $125

Owes: $75k

PITI: $570

Potential rent: $900

This has pretty much sold me on the deal, BUT theres a catch..…her son and his family live in the house, want to remain in the house and have been enjoying $570/mo rent for several years. I told the seller that I would only agree to it, if her kids agreed that in order to remain in the house I would be raising rent. She agreed, and they agreed. There is currently no lease in place.

I want to have them sign an estoppel agreement verifying that there is currently no lease in place, and they are indeed on a month to month etc

I don’t imagine I have the rights to have them pre-emptively sign a lease agreement prior to closing..

I would honestly like to boot them out and RTO, but also like to remain on good terms with my Sub2 sellers (You know..so they don't get a wild hair up their a$$ and call the bank screwing us both over etc..)

QUESTION: What type of legal document /agreement is available to have the tenants sign agreeing to a rent increase BEFORE we close?

I’m probably going to move forward with it, but would definitely like some input/experiences on how to best deal with the kids.