All Forum Posts by: Account Closed

 How has your opinion changed in the last 6 months? Any deals under your belt yet?

I'm in Dallas, TX - also looking for a BRRR OR positive cash flow rental, i can't find any in MLS that can get me positive cash flow, what is the catch, is the market not good

I've been stalking these forums for a while now and y'all are so helpful. Thought I would put out my first post :)

For background, I'm a new investor in the Houston area doing research before my first flip. It looks live ARV will be around 275k-300k.

My question is, when starting out is hard money the way to go? It seems like most investors start out this way. 

But based off the books I've been reading, such as J. Scott's book, hard money isn't always recommended and it's better to go with a portfolio investor such as smaller banks, or partnering with other investors, or of course seller financing. 

Jumping into hard money as a new investor seems insanely risky. I suppose I'm looking for any advice on how you found an alternative to hard money. 

Or on the flip side (see what I did there?), what made you feel secure taking the leap with hard money and going after that first flip.

Partnering with an investor or doing seller financing would be ideal, but I'm still growing my network by cold calling other investors and real estate agents and attending local events. Trying to build out that dream team of contractors and subs as well.

A mentor would also be super helpful, but like I said, still building out that network.

As far as my personal situation, I have a good credit score, a decent amount of savings (200k cash) and a little more than that in investment accounts along with some equity in my current home, a mortgage, and car payments.

Any advice would be greatly appreciated.

Yes the LLC owns the property and the flipper is affiliated with the LLC.

I've worked for contractors that provided services to ppl that did the fix and flip method. For years I worked, asked questions and watched them make a lot of money.  I recently met a guy through a friend.  He has really bad credit and doesn't use his money,  yet he gets loans to buy and fix properties.  He told me that your credit and finances don't matter.  He won't tell me how he does it. Is it true that a person can get into the fix and flip game with absolutely no money and bad credit? If so can anyone tell me exactly how to do this?

@Daniel Patrick Glushko. Yes, the home is move in ready. I started marketing the property yesterday for a few hours. One bite. My VA will spend the rest of the week marketing the property. i'm not giving up and telling the seller anything. I just got a 4 month extension from the seller's lender, so plenty of time. I noticed a lot of BP members here complain of assignment fees. I wonder if they know how much work is involved. Also, I not only have to find sellers willing to sell substantially below FMV, I also have to find a buyer. Anyways, if you drop your buying criteria, perhaps I can find you a good deal. I virtual wholesale. Even though this is my first deal, I've been a real estate and mortgage broker for the past 23 yrs in CA. So, wholesaling is easier for me compared to someone without a real estate background. Thanks for your feedback.

Quote from @Account Closed:

Quote from @Jay Thomas:

Alright, let's break down Subto, especially for a first-time home buyer like you. Subto means taking over the current mortgage on a property without getting a new loan. You basically step into the seller's shoes, handle their monthly payments, and eventually own the place. It's a way to avoid the usual loan challenges, but it comes with its own set of risks and things to understand.

Now, the good and not-so-good parts of Subto:

Good stuff: You might be able to buy faster without waiting for loan approvals and spend less upfront without typical down payments and closing costs. But, watch out for: if the seller stops paying, you might be responsible, and you'll take on any existing problems with the property and mortgage. Also, you won't have full ownership rights until the mortgage is completely paid off.

Talking about how realtors get paid in Subto deals, the usual commission from the seller might not work if they don't have enough money. So, you can discuss things like a fixed upfront fee, tying your pay to a successful deal, or sharing the commission with another realtor. Keep it fair and transparent, letting everyone know the deal details, and make sure everything follows the rules.Utilize resources like the National Association of Realtors (NAR), local real estate groups, and real estate lawyers. They can guide you through Subto deals.

@Satya Veer Bandaru: Bewar get real training if you are going to do "Subject To". Pace Morby is not the guy, In my humble opinion by what I've seen him publish.


@Jay Thomas: Sorry buddy, your comments "if the seller stops paying, you might be responsible, and you'll take on any existing problems with the property and mortgage. Also, you won't have full ownership rights until the mortgage is completely paid off."

are very, very wrong. You're going to get someone sued with that advice.

Anyway here is what Pace Morby is saying

Click to enlarge
What he is doing isn't working properly. In 30 years I had the Due on Sale called twice. Once in 2008 and once in 2020. But this guy has had it called 10 times recently. Very scary.

"Yes, I've had the Sue on sale clause called on me 10 times"

The liability of having the Due on Sale called is that you have 30 days to pay off the loan in full or the freclosure process can begin.

Once that gets filed, that puts a foreclosure on the seller's credit report and they can sue you. A lawsuit costs between $25,000 and $125,000 and runs about a year and a half and puts you under scruitiny for everything you do and have done for the last 3 years. 

Only the foolish take this lightly.

 @Mike Hern thank you for the caution

Yeah I want to get the training before I get into this do you suggest anything good, I checked Pace Morby Traning It's way too expensive

One of my favorites this past week is from "one of your buddies" FB group on "creative financing" where someone with no money wanting proof of funds and to forge it to keep property under agreement while they try and find a hard money lender and people basically telling them how to forge a proof of funds letter. 

SMH...

Alright, let's break down Subto, especially for a first-time home buyer like you. Subto means taking over the current mortgage on a property without getting a new loan. You basically step into the seller's shoes, handle their monthly payments, and eventually own the place. It's a way to avoid the usual loan challenges, but it comes with its own set of risks and things to understand.

Now, the good and not-so-good parts of Subto:

Good stuff: You might be able to buy faster without waiting for loan approvals and spend less upfront without typical down payments and closing costs. But, watch out for: if the seller stops paying, you might be responsible, and you'll take on any existing problems with the property and mortgage. Also, you won't have full ownership rights until the mortgage is completely paid off.

Talking about how realtors get paid in Subto deals, the usual commission from the seller might not work if they don't have enough money. So, you can discuss things like a fixed upfront fee, tying your pay to a successful deal, or sharing the commission with another realtor. Keep it fair and transparent, letting everyone know the deal details, and make sure everything follows the rules.Utilize resources like the National Association of Realtors (NAR), local real estate groups, and real estate lawyers. They can guide you through Subto deals.