All Forum Posts by: Wendy Patton

@Peter Dukaj great job!!  congrats!!!

@Jodi-Ann Birch.

Good day,

I am relatively new to REI and I have a potential subject to deal I am looking at in Cleveland Suburbs and could use some help. The loan payoff is $47,000.00 with 14k past due. The rental potential and areas would allow me to cash flow when all other expenses are added. I am not sure about the process I should be following or where to ask for help so I am asking here?

1. I am only looking to take over the existing payments and not the back payment. Is this the right approach? Or do I pay the past due and then start making payments on the existing loan? is this the best subject to approach?

Someone must pay the past due or the home will go into foreclosure - does the seller have the money to do that?  if not, you need to bring it current for sure.  

2. I will need to make sure the bank is not looking to foreclose or take the home given the past-due amount stated above?

They won't if you pay it in full before the foreclosure sale.

3. Do I need to verify the existing loan amount at or before closing?

asap before you close - AND you should be getting set up on their mortgage account to have full access to it - 

4. I am looking to verify the mortgage type (fixed or ARM). ARM is not the preference esp if the rate is about to adjust or would result in a loss of cash flow potential. Is this approach ok?

Read the mortgage -  you need a copy of it anyway

5. Should I use a title company for this as well?

YES!!!!  otherwise there could be other liens you aren't aware of 

6. Do I get insurance in my name or let it stay in the owner's name?

your name will be the owner and their names will be on the additional insured - and the lender will be named as the lender 

7. How would I know if the bank has a Due on-sale clause?

They all do

8. How do I know to keep abreast of any key communications related to the home esp from the bank if the loan will not be in my name? Does it matter?

getting on their account - 

8a. Should I utilize an authorization to release information form and where would I go to find these or get help?

Read my book from Amazon on this topic - i just updated it for 2023 and that should REALLY hellp

FYI for all:  There are some of the underwriters rejecting more and more investor type deals - How do i know this?  I own a title company in MI and we have several underwriters - a few are good and a few don't' like some of the deals anymore.  Understand fraud is a big issue especially in cities like Detroit.   Soooooo some title companies who only have one underwriter might have a different answer then a title company who has multiple choices.  Also, if they focus on investor deals (like mine does) then that is key also.   Let me know if anyone is in MI and needs this contact.

@Bob Willis Ken has great points in all areas -  there are some things you can do to protect the underlying mortgage and them refinancing or taking out more debt.  1)  I always make their mortgage payment directly - and if i am paying them more then that then they get the difference - i learned this one the hard way in the 90s.   2)  When  you do a lease option you should record what is called a Memorandum of Option -  this prevents them from selling to someone else and also from refinancing without your approval. Technically it is a sort of lien on the property. 

Getting the deed via sub to is great - When it makes sense with the deal.  Sometimes it is better to lease option vs sub to.  When you sub to you do own it..... great for the most part unless the market goes down or there are issues with the home.  Lease Options are great when you want the RIGHT to buy the home but not the obligation.... there is some safety also in options in that regard.  When i do options I only buy from motivated sellers who are not distressed sellers - because you don't get the deed.  If the seller is distressed then there are some issues that could affect title.  Too much to write here but i hope this helps from a high level to compliment what Ken wrote.

Metro Detroit - Oakland, Macomb, Wayne. Also the Grand Rapids area so Kent county 

🦃 November Workshop - Subject-To: The Tool You Need to Make Millions in this Market featuring Lindsey Jensen

🗓 Saturday November 18th | 9AM-3PM⁣⁣⁣

📍Hilton Garden Inn - Troy, MI

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• what a sub-to deal is
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📊 November Meeting: Market Trends and Stats featuring Lori Chmura

🗓 Thursday November 16th | 6PM-9PM⁣⁣

📍MSU Management Education Center - 811 W Square Lake Rd. Troy, MI ⁣

Economic updates you can't afford to miss!

Tentative Schedule:
5:30 - 6:00pm: Doors Open
Network with MREI Members, Guests and Vendors

6:00 - 6:30pm: Ask The Expert

6:30 - 6:45pm: Haves and Wants

6:45 - 7:15pm: Additional Networking

7:20pm: MREI Announcements and Vendor Raffle

7:30 - 9:00pm: Main Meeting Event - Market Trends and Stats
Lori Chmura has been an investor since she was 17 years of age. She is the second generation entrepreneur of a family owned business called Middleton Real Estate Training, Inc. which has been training Real Estate Licensees since 1970. Lori has owned and operated this business since 1981 and has expanded their training courses to include courses for appraisers, home inspectors, builders, mortgage loan originators, and several designation courses for National Association of Realtors. Lori along with the rest of her teaching staff has taught many of these courses both in Michigan and in several other States. Lori Chmura will join us to give economic updates as well as Michigan and federal law updates. You can't afford to miss it!

Monthly Meeting Cost:
Members: FREE
First Time Guest: FREE (please pre-register online before the event)
Returning Guests/Non-Members who already used their free guest pass: $20 Online before the day of the meeting or $25 at the Door.

Meeting Notes:

• There are no food or drinks provided at the event (there are no vending machines).
• Eat before arrival or bring your own drink and/or snack for throughout the event.
• Bring a pen and notepad
• Bring business cards for networking

REGISTER HERE ➡️ https://bit.ly/MREINOV16

@Rahnesha White  i do lending if you want to reach out to me -  

@Shlomo Koheler check out her link/QR code to find otu more 

Vena is a rockstar in most areas of investing - get to any of her training you can!