All Forum Posts by: Wendy Patton

@Jacob Cole would love to connect - come to our meeting tomorrow night in Troy! Find me if you do - lots of investors to network with.

also to add to my above post -

Lots of high tech companies, mortgage and title have been laying off for the last 9 months.  The ripple affect from this still hasn't hit our economy.  

I know i will think of more soon

@Jay Hinrichs To start here is what Google says on this question:  is the economy getting worse?

The consensus estimate on the probability of a meaningful downturn in the American
economy in the next 12 months is at 65%, according to Goldman Sachs
Research. But our own economic analysis rates that probability much
lower, at 35%

Economic momentum is slowing, amid higher interest rates and a banking crisis, new gross domestic product report shows. The U.S. economy wobbled in the first months of 2023, growing at an annual rate of 1.1 percent, as higher interest rates and a banking crisis dragged down activity across sectors

The US economy is likely to get worse before it gets better, according to forecasting by EY. The combination of persistently elevated prices, high interest rates and now tightening credit conditions will weigh on business investment, consumer spending and the transactions markets in the coming months

Almost two-thirds of chief economists believe a global recession is likely in 2023; of which 18% consider it extremely likely – more than twice as many as in the previous survey conducted in September 2022. A third of respondents consider a global recession to be unlikely this year.

And there are so many more - however, I am stating this from my own view of the world around me.  1)  Rising housing prices without the same increase in incomes will eventually price too many people out of the housing market - which will slow down the real estate market.  The reason it's still hot in SOME price ranges is there is still a shortage of inventory but increase pricing and interest rates will slow that down as it prices people out of the market.   2) our country continues to increase it's national debt - in 2022 30 Trillion now it's 31.5 trillion  3)  US Inflation Rate is at 4.93%, compared to 4.98% last month and 8.26% last year. This is higher than the long term average of 3.28%.   4)  US News on stock market:  It's not just Wall Street that's concerned. Sentiment among U.S. consumers is tumbling, according to a preliminary survey by the University of Michigan. That's a worry because strong spending by consumers has been one of the main forces preventing a recession as the economy slows.

Unemployment is a little better then it was but most other indicators are not good. 

I hope that helps with my perspective

@Hunter Janes  this is the time to really learn about lease options and subject-to deals.... or seller financing with lower interest rates, however, the homes on the market are still getting a lot of competition with first time home buyers.  So you will want to chat with wholesalers and find out what they have coming up that would be a better deal or seller financing.  I personally am buying VERY strategically, but holding back cash and doing other things during this time.  I think we are in for some tough times coming soon.  What does that mean?  Better deals for investors should be coming

@Cody Lekberg agree about putting much less down if you don't own it.  AND i would make sure 100% of what you put down goes to the mortgage, if you can.  However, with a lease purchase there is more risk because they still own it.  Agree with above to do a subject -to or pay 50% towards the mortgage and subject to for the rest......  VERY little risk for the seller at all.  or do you have Land Contracts in GA or can you have the seller do a wrap mortgage from them to you and they keep theirs in place (but you put your down against theirs so it is very small?  a few ideas

@Chip Martin 

#1 - yes the seller could go back in - but you should also have the payments set up for autopayment or know how to get them mailed in if any issue.  If you are working with truly motivated sellers, they rarely ever even log in again.  Also you should have a Limited Power of Attorney notarized by the seller which allows you to go to the bank - 
It's rare but this could happen... but most motivated sellers dont' want the home that's why they sold it to you.  Now think about this - if they stopped paying or stopped you from paying - whose credit is hurt?  Their credit is affected and yet they have zero ownership rights.  That would be very dumb for them.  But with all that said, I would make sure i know exactly where to send the payments if anything did happen like that.  Its easy!  

#2 yes all tax docs technically go in their name but when I do a subject to they come to my address - AND my bookkeeper knows how much we paid and what that amortization schedule looks like to know what amount we deduct.  We own it so we deduct it like any other loan/with taxes and insurance/interest

I hope that helps

@Tony Benacquista your background and what you do would be huge to our Michigan investor group - lots of people need to know who to call to add those type of windows - would love to meet you if you can attend or reach out to me.  

@Jose JacobA subject-to IS A SALE!  There may not be money exchanged and there may not be a mortgage payoff but there is a sale of the home.  Yes there is a transfer of the deed also which is typically (but not always) a part of the sale. 

yes each bank/lender will have their own way to approve you to have authorization to talk to them.  

I have bought this way many times but do check out the probate situation and that the person with authority is the one signing the deed - use a title company and they will make sure it is all done properly for clear title.  

@Brett Ferrara Actually many sellers are not desperate who sell to me with Sub To - some just procrastinate and then realize they need/want to move faster then selling with a Realtor.   It's weird ..... I used to try to understand why sellers would do this, but the better way to look at is there are many reasons a seller would do this AND we don't have to think we would react to their situation the same way they would.  I can't understand why someone would give me the deed, but they do. I also don't put my head in the sand when there is a situation that needs addressing (which might cause no time but to give the deed).  It's so hard to understand what it feels like, or is like, to walk in someone else's shoes.