I'm Looking Buy 20 Subject-To Properties In Maryland This Year

[Fade Aromolaran]

My name is Fade and I'm a wholesaler based out of Maryland and I've done a good number of deals over the past year and a half.I've been studying subject-to transactions for the past couple months in preparation for the gap in income the pandemic caused and the amount of creative financing inventory that is going to pop up. At this point, I understand the back bone of the process and how to run the numbers. Right now I am having issues with finding an attorney for legal advice and a title company that is willing to close these deals. The doors have been slammed in my face so far. 

Please reach out if you or someone you know are an attorney or title company processor that is interested in doing business and building a relationship. My goal is to eventually hit 10 deals per month and I also want to be able to pick up 20 subto/seller finance deals this year.  Please let me know if you are interested in being a part of my journey and want to work together!

[Tom Gimer]

Highly unlikely any attorney is going to step up here unless you have financial backing to make the payoffs if/when the bank calls the loan(s). There is just too much risk. It's even more unlikely that a title processor will raise their hand as without title insurance there is no money in the deal for the title company. No money + high risk = processor fired.

We are often approached (even by some on this site) about subject-to transactions and the would-be buyers typically have no real plan in place that is likely to succeed. More often it's just a train-wreck waiting to happen.

The biggest hurdle (other than the potential liability, including defense costs when things go south, regardless of what the seller would sign off on prior to or at settlement) is the requirement that HOI (hazard insurance) continues to protect the lender and owner. Those buyers that do have a reasonable plan to satisfy this requirement -- such as deeding to a trust settled by the current owner and later changing the beneficiary of the trust -- don't have an escape plan for when the asset stops cash-flowing or the lender calls the loan.

Unless you have considerable cash on hand (or accessible) to deal with the potential storm when the market tanks or the loan is called, it may be best to just work the deal out with the seller and learn how to do your own title search and deed prep. In Maryland a deed can be prepared by one of the parties to it.