All Forum Posts by: Ryan Urban

Update on my first deal:

This is requiring PATIENCE. I found a fourplex that the bank was just taking back (owner bought it with a 100% ARM - ouch). Pretty good condition, popular area of town. Value $270,000, my offer is $215,000. Positive cash flow would be $700 to $800. Putting 10% down.

The bank is certainly taking its time deciding. My offer went in on August 22 (Today is September 25). I've had to extend my offer twice, and the bank has asked an outside broker to give an opinion on the value of the property (my broker had a name for this, don't remember). Found out yesterday that mine is the only offer they're considering.

I'm ready to buy another property, but I don't want to move until this deal is done. I told my broker yesterday that my patience is running out, but she advises patience because she says this would be a great buy. I'm trying!!!

Hopefully the bank will decide soon. At this point, I just want an answer, whether it's yes or no!

Thanks John, that's exactly what I was looking for.

I'm a little wishy-washy on the Subject To strategy. I've seen many comments here and there about the possible ramifications of it, and I'm still trying to decide if I'll go after it. I've even seen some comments that certain states are considering outlawing the practice.

I'm looking at these kinds of deals to simply fund more standard down payment/buy & hold purchases without having to invest any more cash than I already am. Also, I'd never sell the property on a Subject To basis, I agree that it's not ethical to have the original owner's credit at the mercy of someone I don't know.

I'm also having to drag my feet a bit as I wait for a bank to give me a "yes" or "no" on an short sale bid I made: Fourplex valued at $270K, my bid is $215K. Got to it right before foreclosure. Once they finally give me an answer I'll be able to make other moves. Should be any day now.

Thanks again.

I also received 5 from our buddy Shawn.

I've gotten so many spam emails over the years I delete them without even thinking.

I wonder how many "real" emails I've lost that way!

Just looking at this from every angle...

Is there any reason I can't wholesale a property I just picked up on a Subject To transaction? Since the new buyer would be using a new loan or cash, I don't see a problem here - unless you can not change title to the property that quickly.

Any thoughts, warnings?

I've been visiting hard money lending sites such as E-Hard Money Lender, Lending Associates, etc., and I have a few questions I'd much rather ask YOU folks than one of their loan officers:

1. If LTV remains below 70% or 75%, how much higher are hard money loan interest rates and closing costs as compared to conventional loans?

2. I notice many offer interest-only loans. Is there any advantage to this strategy when it comes to investment properties?

3. What are the biggest advantages & disadvantages of working with HML's?

4. Are hard money loans primarily used for fix and flip, or are they also appropriate for buy & hold?

As always, thanks.

Just to verify, though, it's my understanding that the group of investors you have developed relationships with already have established access to their own cash or financing.

So unless you're doing a double-closing, the wholesaler doesn't need to worry about financing. Is that correct?

It seems to me that, at its most fundamental level, the two keys to wholesaling are (1) establishing a large network of investors to contact, and (2) effective marketing to find the deals.

Excellent Wheatie, thanks.

I'd appreciate your opinion on this...

Here's "The Law" on bandit signs in Colorado Springs, from our Code Enforcement website:

"Garage sale signs lead into part of the litter code, signs on public property or right of ways, obstruction of public ways and maintenance of adjacent right of ways. Everyone has seen these types of signs littering the roadways. The code states, no temporary or "bandit" signs, as we call them, will be allowed anywhere in the city/public right of way without a Revocable Permit issued by the City Planning Department. Code Enforcement Officers or volunteers remove "Temporary" signs.

Exception: Signs, no larger than 2' x 3' may be placed in the right of way from noon Fridays to noon Mondays."

If I'm reading that last paragraph right, ol' Sheriff Bob won't be looking for me if I put bandit signs up after noon on Fridays and take them down by noon on Mondays.

Is that what you see? And if so, what do you suppose "in the right of way" means?

Thanks for your help.

That's my question. If it's illegal and you're providing your phone number, aren't you just asking for it?

:crying:

Thanks Josh.

Agreed, paralysis by analysis is wasteful. My only concern is legality, and I just want to be sure that the mechanics of what I'm doing are correct, whether it's wholesaling or subject to.

I understand the principles behind each technique, but the last thing I want to do is mess the whole thing up with ignorance. If I go to a prospective wholesale/subject to buyer and I'm not sure about how to handle the process, I'll look like an idiot and the deal is toast.

I also don't want phone calls from lawyers simply because I handled the paperwork wrong and left myself legally/financially vulnerable.

Ryan