All Forum Posts by: Curt Smith

Hi, All,   Read BP's Zero Down and other creative books.  I've done sandwitch LO,  LO,  rent to own (to sell) etc...

Here what I suggest;   Read the BP books.   Go to youtube and search;  lease options,  sandwitch lease option,   THEN;   subject to,  talking to sellers,  finding subject to sellers ...

I will never again buy from a seller on a lease and option!!!   If they are motivated then offer to buy subject to (assuming they have a mortgage).   Its just too risky to assume in a LO with a seller they will takee your payment and then pay the underlying mortgage.  What if they don't?  In subject to I control everything and my risk is largely known up front.

My past deals are subject to and nearly exclusively I'm only looking for subject to deals.  FWIW no seller adverrtises take over my mortgage.  They may reply to your post card;  do you want to sell?  They generally would li,e too get out from under a stressfull mortgage and of course you woon't offer to buy with cash or worse a new mortgage, you'll offer to give them some pocket cash at closing and to take over their payments so they can move oout and get on with their life.

I give out a help guild doc to subject to. connect/pm me. Join your local REIA!!! find REIAs in meetup.org. Local orgs are where experts hang. Best of luck.

Hi, WOW there is no more complicated project then an <<1940's 2/1 into something current. Please join a local REIA, Atlanta REIA, or Georgia REIA and find their flipper trainers. I did and ended up just staying in GaReia for many reasons. The president of GaREIA has done around 8 1920's++ flips. Connect/PM me.

For others;   Pre lets say 1950's plan on a complete systems replacement; electrical, plumbing, sewer, roof PLUS the new popped out exterisor walls and new baths etc.  There is NOTHING to be salvaged in these older homes except the 2x4 structure.  LOL, not really something to laugh at.

Soo much to pack into one reply;  you need survey, structural engineer, often an architect for the drawings or a tight relationship with a draftsmen who does these old house drawings FOR the county permitting process.  So much you don't know and will take years (literally) frustrating over this type oof project.   

I bought a 2/2 brick ranch in decatur to pop out 2 mo ago and am shocked (even given my experience) at the delays for survey;  8 weeks,  architect;  6-12 mo;  Framers;  12 mo,  blablabla.   Unless you have your OWN crew on the ready you will litterally wait 12mo + more to even start demo (post permits).   Just getting the pre-work to get permits is taking what I'll predict nearly 12 mo;  survey, architect, structural eng THEN permits THEN demo THEN framers.   OMG  ;(

Please pay for flipping education.  Find a mentor.  

Beginners should start out on a no floor plan changes lipstick rehab.   Popping out the back is advanced.  Doing a 1920s 2/1 is super super advanced.  Please find a network of experts, then hang in local REIAs.   Best of luck, curt

Hi Looks like you are in Atlanta like me. Join the local REIAs!!! There's Alanta REIA, and Georgia REIA. I joined them all 8 yr ago and ended up just staying in Georgia REIA for a few reasons, more experienced kind helping folks for one. A google group for fast help another.

Also; see   https://www.biggerpockets.com/...

I strongly reco paying for national expert education in MF if you are serious. SFR / tenant screening can be picked up trial and error but all the other more complicated deal types; MF, self storage, tax deeds, raw land, hotels, even flipping, bla bla bla need specific boot camp like education. Please pay for a 3-4 day boot camp. Find local investors in your nitch that are a few years ahead of you. Nothing substitutes for "knowledge" or "network". Nothing. Best of luck.

Why don't you call those ads?  some will be ma-pa and glad to talk.  I've even chatted up PMs who are bored.  :)

The key to rentals / rental demand are jobs and best growing jobs.  Know your area's jobs.   indeed.com set radius on left to 5 mi, then comparee the jobs numbers to other same pop size towns to get a relative strength.

Is there a college, hospitals, gov workers?  Amazon warehouse?

I wrote a paper on how to buy a bullet proof portfolio.  I linked that file off my BP profile 1st paragraph.   Jobs;  location to freeway, commercial area = good rental demand and long stays (key).    

Best of luck.

@Kyle Curtin I send out rent raise letter annually, typical is 7% raises. Even still I'm below this crazy market and like the gist of your post, I'm ok with being lower. I get my raises, my great tenants never move. Yes re 5% min raise today is ok.

@Benjamin Fogle

In my experience, talking to each, and they all meet yiur reqs, then who seems easiest to talk to? Longest prior tenancy? Highest fico? Highest current bank balance? Btw my reqs include bank balance today of 2.5x rent. Screen shoot yiur bank balance to proceed...

One of yoyr list has something more desirable then the rest. Longer stay, due to a needed school system, a relative lives nearby etc.

@Robert Jordan 2 of my last 3 deals I bought (for rentals) where subject to the existing mortgage. My costs where the closing costs, one I gave the seller $3k for a security deposit to move to.

Now: not mentioned in the no money down ads, books, are the $5k to $10k I spent marketing for the stressed person (following a comment above). Same idea, Market to low equity, VA fha, low years owned but stress, late on payments, BK, liens, divorce.

Join local Reias for local creative deal experts.

Search YouTube for subject to, lease option trainer's. Nuy their programs. I did, all are good. Ie Joe McCall etc.

@Sanjeet Dighawa

I have top screening steps that include a face to face where I meet all residents, pets, etc. How do they handle themselves, calm, kind ti each other? Well behaved kids? Pets?

Bad tenancy can be sniffed out.

"How us yoyr current landlord? " will bait bad tenants to go off. Lol omg I've heard some rants! Thank goodness too I pass on renters!

Read this book, best on screening Landlording on auto pilot! Tops.

I only rent long term, it's #1 requirement in my ad, giving all rental requirements. I ask what's yiur renting plans? If they say, well,, rent fir a year then buy. I say I support folks buying a house, but I can't take yiu, you dont meet our multi year stay requirement. Honest I say this and it's Fair housing compliant, length of stay is fair game.

Professionals often are short stays.

Also, blue collar tentabs fix things, white collar often can't even change light bulbs. You'll get alot more fussy calls from white collar! I dont rent to white collar...

Good luck.

Lots of issues here.

#1, why get new debt, take over the current payments subject to, pay her her equity, or pay on a note to her.

#2, she's to pay rent.  There will be a time when she stops paying.  Her social security + savings won';t cover it etc.  You will have some period, many years where you are paying the mortgage and not getting any rent.

#3 the cleanest tactic is to put the property into a land trust, where you and your sibling are successor beneficiaries in some percent, 50:50...   Make sure she has a Will, but the trust and successor beneficiaries keeps the house out of probate.   But you buying now does too but sets up for inheritance arguments.

#4 a story;   I put my mother in-laws house into a land trust, my wife and her brother as successor beneficiaries, me as trustee.  She passed,  my wife now controls the house.   At the same time I put in $100k of rehab into the house and had a security deed filed on the property, zero payments, 8% interest, to be paid off upon sale of the house some time in the future.   I also got a contract signed with my mother in-law (prior to passing) giving my wife and me 100% control of the house to run as a rental, 100% of the income goes to us, not my brother in-law, got him to sign too!!!!!!   We now run that house as a rental until some future date we sell then we owe my brother in-law 50% of the value at the time prior to me rehabbbing it.

My point is we documented "papered" this deal criss-crossing and covering every scenario.  Nothing left verbal, everything in writing AND signed by the other heir when necessary.

Best of luck with a difficult scenario legally and family agreement wise.

Hi Folks, I focus on sub-to.  Connect/PM me I send out a free sub to training complete with all example docs.  Very complicated closing AND especially post closing.  

Recently I have had to change my closers, the old ones bailed on so called liability.   The best tactic is to join local REIAs in your area.  Ask for investor friendly closers for referral from LOCALS.

Else;  use google and start calling all the real estate attorneys/title offices in your area and ask if they'd close a purchase where the security deed was not paid off and stayed in the sellers name, you take over the payments.  They do not know the term;  subject-to.  Keep calling.   Some may say its illegal  which is wrong.  In GA the settlement statement lines are 203/503;  debt left in the sellers name subject to...  Obviously its NOT illegal, just not very common.   

You are not assuming the loan.  You do not need approval by the bank.  You are stepping into being the "manager" for the seller since they are leaving the country and leaving their real estate in your hands as the trustee of their family trust and the manager.  If you don't say stupid things to the bank (post closing) and have trust docs, Power of Attorney docs, the banks have a std process for "managers" "trustees" to take over managing the loan..   Never a problem!

Also mention to the closer/title office you'll close into a trust and you'll bring all the docs including important adendums to the warrantee deed.  See my docs.