All Forum Posts by: Stephen Stokes

Hi Edward- I suggest you do some marketing for off-market properties in a focused area, network with other investors, wholesellers, etc. The retail market (MLS) is where real estate agents and the general public transacts real estate. In a hot market like Austin, it is unlikely that you will find a good deal competing with folks that are willing to pay above market values and get into bidding wars.

0 Votes

Austin, Texas

Looking for a copy of this smartsell book that Erik talks about in a podcast I was recently listening to. Either that or a good template for seller's options educational documentations.

https://www.google.com/books/edition/SmartSell/tFzZAQAACAAJ?hl=en

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@Stephen Bianes Sonora Bank in Winbery might be willing to do it. You definitely can’t get agency paper so your looking in the right place (portfolio lenders)

2 Votes

Austin, Texas

@Evan Mullen Once you have a deal under contract you can put together a scope of work with what you want to do to the property and have contractors provide you bids. Just before that, you should hire an inspector to identify what repairs are needed and add that to your improvements on the scope of work. A bird in the hand worth more than two in the bush; contractors want to discuss and bid on active real opportunities.

To find contractors you can use online avenues like thumbtack, angieslist, Facebook groups, BBB, or go old school and directly network; hang out around the permit office or Home Depot and ask for cards/contact info.

2 Votes

Austin, Texas

@Chris Wolfe sent you a direct message.

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Austin, Texas

Originally posted by @Alex G.:

I closed many subject to deals at seller’s kitchen table when I was a budding investor. This was before I learned the many ways in which the title can be screwed up... And same for your future profits.

Closing at the seller’s kitchen table is foolish, as you won’t get title policy. Unless you’re a pro level title examiner you won’t personally be able to discover various issues with the title. Moreover, to establish seller’s correct title vesting, the title company has sellers sign a variety of additional affidavits and statements about family history, liens and such at closing. Should an issue come up later, they’ll go after the sellers legally.

If their search has a mistake, their policy will cover you. If your search is messed up, you’ll have to pay to clear out the issues yourself.

Where to find title companies willing to close subject to is another matter. There has been a big push on title company underwriters from FHA/VA/conventional lenders to stop closing subject to deals. I used to close them at Independence Title and TNT (John Pleuthner's office), but they have advised they stopped closing them. Patten Law firm that caters to investors in Texas still closes them and issues the title policy, at least that's my understanding.

Thank you for the referral as always and support as always Alex! I did see on their site they close sub-2 deals and am going to add them to my list.

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Austin, Texas

Originally posted by @Greg H.:

Wally Tingley at THE Title Company in Austin will close Sub2 with title insurance as they own a title plant

Thank you for the referral. Unfortunately Wally refused to have hold a brief call to go over the services and stated he prefers to work over email. This does not bode well for start to productive business relationship if you will not even talk with perspective client that will be bringing business in your door. Maybe he is good guy but that is not how I prefer to do business....we all know this is an industry built on relationships.

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Austin, Texas

For anyone out there doing subject-to deals in Austin, are you doing closings at a title company, your lawyer, seller kitchen table or some other option?

1 Vote

Austin, Texas