All Forum Posts by: Mike W.

I forced a marginal deal to meet a portfolio goal I had made years earlier. I thought it must be a good deal, due to an investor selling 40 properties. Thank goodness I didn't buy more of them. I ended up with a true landlording experience...including, section 8 inherited tenant, not paying her portion, 4 kids, doesn't pay bills, no phone, gets garbage pickup turned of by not paying...puts garbage in shed until code enforcement finds it. I have to do the grossest thing in my 30 years of life in taking garbage out of a shed in the middle of summer wreching as I put it in the back of a pickup...Then evicting her only to get an emergency assistance check to cover her back rent, only to evict again, all the way to physical eviction, finding out that she was in jail the week during the eviction process...left all her junk in the house. The house was truely in need of a match.

My wife, in her infinite wisdom, told me, just put it on the market, fix it up as you have time, but just get it out there. It sold in 30 days to a sucker even bigger than me. My overall net result, approximately $6000 in tuition for the class "Urban Section 8 Landlording 101". It could have been far worse. I now feel fortunate to have had the experience and realized and confirmed that suburban rentals are for me. Urban section 8 housing is not a business I am interested in.

You could ask the bank...You could tell the bank this is what you are doing and why it is in their best interest to let you, or you could just do it and see what happens.

Desparate people do desparate things.

You provide a solution, they take it or leave it. You don't prove anything. It is best that you don't do it if you plan on screwing them, by collecting rent and not paying the mortgage. You will likely be gone after by someone...

Sub2 is one acquisition method. It doesnt work in every case and tehre are risks invovled, like what to do if the lender calls the loan due on sale.

Do what you do, but always have a plan B if something goes wrong.

Not really...

The whole idea with subject to is that you take over the payments on someone elses mortgage. They deed the house into your name, entity or trustee of your choice. Then it becomes your property with thier mortgage. You can get rid of the property in whatever manner you want as long as the mortgage keeps getting paid...

If you quit paying the mortgage it doesnt matter if you have the deed, the mortgage company can still foreclose...

You can sell on a contract or lease option or whatever.

No credit needed to do sub2, just a willing seller to leave thier name on the mortgage.

In that case,
Be careful while swimming with sharks... :D

Be careful while swimming with sharks... :crying:

Make sure the price is right or move on. Don't force a deal...remember, you asked to buy them, he wasn't planning to sell them, otherwise they would have been on the market.

If you know the apartment building you are looking for, find the caretaker, and ask them who is the owner...

Banks don't want to own real estate. All properties that have gone through the redemption period and a third party did not buy it at the sheriff sale are listed through a broker. If you want to buy without a broker, you need to market to folks that have not quite hit foreclosure yet. 3-6 months late, sheriff sale has not yet happened. Once the sheriff sale has occured, you can attempt a short sale if there is not enough equity, but in this market it is worth waiting til it goes REO. That way, you don't have to go throught he headaches of the shortsale process. Just make and offer and see what happens. With the growing number of foreclosures, there are bound to be more than a few properties that meet your criteria and a bank that is eager enough to sell to you...

Best advice I can give. Don't quit your day job. Or get a less stressful one. The more money you have the more stressful things will be trying to keep it.

I would say that it is quite possible that his numbers are accurate for a 3 year period. The problem is, if he did no repairs for 3 yrs or if he did little or no maintenance this is possible. The issue at hand is that property needs maintenance and repairs, sometimes big ones, and they don't always occur every year or ervery few years. I had a $1600 well repair bill one year and a $7000 well replacement bill the next on a duplex. Then my expenses for the next three years were nil, cuz I had just spent so much, i put off a few things too...Take it into perspective that you need to crunch your numbers well with your own numbers to get a good idea of reality. On the surface this sounds like a pretty good deal to me, but being in a rural area could be a problem if you have vacancy. Only so many tenants available...