All Forum Posts by: Brian Gibbons

Hi Carrie Collyer,

I have over 30 years experience in REI, and have many books on the subject of Sub2.

I would not depend on Amazon Comments to provide me with all the facts. If I like something I do not take the time to write a referral on Amazon.

I have these resources and I have talked with the author Matthew Chan. I enjoy the resource very much, especially about the chapter on Due on Sale Clause.

He has a real Sub2 purchase business, not theory.

Hope this has helped, Good luck!

Michael,

you are always a bright flashlight in the black darkness of REI.

Thanks so much,

Brian

The best book on Subject to is

http://www.amazon.com/TurnKey-Investors-Subject-Mortgage-Handbook/dp/0971394741/ref=sr_1_1?ie=UTF8&qid=1374701148&sr=8-1&keywords=subject+to+real+estate+Matthew

The contracts book is http://www.amazon.com/TurnKey-Investors-Mortgage-Documents-Collection/dp/1933723106/ref=la_B001K8SB7K_1_16?s=books&ie=UTF8&qid=1374701213&sr=1-16

There is nothing better in print.

Brian

Thanks Curt Smith , Jose Enage let's look at it this way, what PERCENTAGE is it underwater, not HOW MUCH?

I look for deals on a LO Assignment that are no more than 10% underwater.

If it is worth $50K, that is $55K.

Your example is over 100% underwater, more than $50K more than the comps.

How is that ever a good deal for an end buyer or yourself?

If I found a free and clear house say comps are $50K, and Sellers wanted $55K, I would do that if they carried a note with 1 payment down and 180 payments / 15 year note.

This REI business is my price / your terms or my terms / your price. Don't get a bad deal just to get a deal.

Brian

Jose Enage
are these the facts?
Comps are $50K
Mortg Payoff is $120K??

Outgoings are 900 plus maintenance,
while income potential is $675 to $985?

If these are the facts, R U N!

there are soooo many properties with better numbers.

Sandwiches are only ok with spreads in rent of $250 - $300 min, IMHO.

If you are doing wholesaling lease options, make it a REASONABLE deal if possible for the Tenant Buyer, which this is clearly not.

Count Me In Brandon Turner!

I will have fun writing this!

Brian

Like many have said,

Have 2 or more agents that have sold at lease 10 houses in your area do a CMA with comps, free.

Interview a buyer's agent, offer to pay a commission for a lease purchase, paying market rent, buying at a new appraisal in 24 months.

Due on Sale Clause can not be avoided with a lease purchase, but there is no due on sale jail.

The lender needs to work hard to call the loan due, and want the property back, so they rarely call the loan due.

This is also applicable to selling on terms with a
Sub2
Wrap Around Mortgage
Contract For Deed

I would:

Lease for 12 months with (1) 12 month extension possible if rent is paid on time.

Separate Option for 3% of value, applied toward the purchase price.Term for Option is 24 months.

You can test the waters with CraigsList,

"Must Sell, Need to relocate to Atlanta
Cash Sale or Rent to Own
Beautiful (describe best features.)
Will Rent to Own to right party with good income.
I am selling at a Fair Price and at Fair Monthly Rent.
Please fill out this form (link)

Link the form to a free www.jotform.com form.

Ask for job info and income info, name, cell phone, email, and date to move in.

I would take the top 3 candidates and have a licensed mortgage broker look at their app.

You can download this Tenant Buyer Eval Form http://www.biggerpockets.com/files/user/REISkills/file/tenant-buyer-eval-form to fill out for your Tenant Buyer Leads. Give this form to your licensed mortgage broker.

The key to Lease Purchase is properly understanding FHA guidelines.

If you need help with this transaction please contact me.

Best Wishes,

Brian

I can recommend Blair Warner, UpgradeMyCredit.com, lot of free info, holds them by the hand, none better. 888-586-2261

Btw, beware of paper mills like Lexington Law, waste of money.

Brian

Michael Quarles should be able to guide you here.

Kudos to John Jackson

To John Jackson

John is not only a nice guy, he is a complete REI expert in Texas on many fronts.

He was my student in Lease Option Assignments way back in 2001 (coops, wholesaling lease options, all the same) being a Stock Trader with 2 little girls, stay at home dad. I have done that too, not an easy thing!

He spent probably in excess of $25,000 in legal fees to perfect Texas lease options, especially since Austin changed the rules on lease options.

You see, the crooks in REI in TX were bad guys, selling crap houses to Hispanics, selling on terms like rent to own and CFDs, the crooks not recording ANYTHING, foreclosing and evicting like the old West, and in 2005 Austin let loose on the public "executory contract" TX laws.

Bottom line, "scare the heck out of REIs selling houses on terms. Home owners too."

The difference between John and myself are a bit stark...

You see I am a strict teacher, ex Marine, taught Chemistry and Public Speaking in HS and college, really not THAT funny, and John is my opposite, he actually cracks himself up on a daily basis!

Many people do not know that John has done stand up comedy before, so that is the reason why he is so in love with himself! (kidding) He is funny in that "Repulican far right Texan" sort of way (you know the way Rick Perry is funny?)

Seriously, back to REI, not THEORY but DOING IT...

I would challenge anyone to surpass John in a couple of respects....

1. No one has been more carefully scrutinized by the Texas Real Estate Board as to his Lease Option Assignment business. The Texas Real Estate Gestapo https://www.trec.state.tx.us/ has looked over his business model and contracts and have given him an open pass to operate his RE business without a sales license.

2. He has few peers in FHA loan guidelines. He can size up a Tenant Buyer and estimate with CERTAINTY if and when they can get a mortgage.

3. He also can size a Seller that needs to COOPERATE with a "buyer in training" to avoid a problem over the course of the lease option.

4. He has direct mail to Home Sellers down to a science. No one does it better.

5. He really cares about his LeaseOptionClasses students. He wants them to win, even the insecure introverted ones.

There a few more reasons, but I will defer to Michael Carbonare for some really embarrassing stories that only he is privy too.

This is unsolicited compliment to John.

Now if I can only get that Remington rifle out of his Ford 150 pickup truck!

With Affection,

Brian