Property Manager · Milwaukee, WI · Member since 2011 · 185 posts · 16 votes
Hi,
Has anyone purchased this course from Jeff Watson and Brian Meara's short sale strategy? This is supposed to be a new strategy - some flip free strategy. It says it is not lease option. They were selling it for $97 but now it is closed.
Any feedback on this course? What is this course about? Does it have anything to do with selling the property back to the owner at reduced price??
It's one thing to have the theoretical knowledge on how it's done and it's another to have the exact language in the contract and the step-by-step process to make it happen. The program includes specific addendum that puts the lender on notice that if a subsequent offer is required to be presented or if a 30-60-90 day hold is required (such is the case with GSEs and some anti-flip lenders), the the investor has the choice to step aside for a fee and let the sale take place from A to C. It's a completely open and ethical way to do it so you are not hiding anything but actively disclosing your intent. If the bank allows flipping then you can always stay on and close on A to B then flip to C like a regular short sale flip. I could have paid an attorney hundreds of dollars to draft such addendum but I got it for $97 bucks plus detailed step-by-step video training on how to use it. For me it's a no-brainer.
This is not for the novice investor wanting to learn short sale flips, but it's a tool that complements whatever training and techniques you have already learned. It's specifically designed to overcome the anti-flipping rules.
@Karen M. "legally" anyone can buy a short sale property, even agents, but it's what you do afterwards that can get you in trouble if not handled carefully. Agents have a higher duty for disclosure and ethical conduct when it comes to dealing with distressed sellers. Jeff Watson the author of Flip Free Profits is very adamant about doing it in the right way and avoid any legal or ethical issues.
I'd be willing to bet it go's a little something like this...
http://www.biggerpockets.com/blogs/2849/blog_posts/21931-how-to-buy-a-house-with-zero-money-down-getting-a-loan
I was actually wondering the same thing. I don't think the buy the short sale and keep as a rental is what they were trying to sell. I watched the sales pitch video also. It has something to do with getting around all the hassles of flipping/double closing short sales. Their sales pitch was that you don't have to use any of your own money. I was interested as well, but don't want to buy something and then get up-sold to something else. I also don't want to buy something I already know how to do. What I am doing is buying short sales and doing a fix and flips or fix and hold. I am also a realtor so I list short sale properties to get a commission. But If there is a different strategy, I'm always wanting to learn and would buy the program.
Hmm... I wonder what this short sale system is about ....
Originally posted by Monica Breckenridge:
I was interested as well, but don't want to buy something and then get up-sold to something else. I also don't want to buy something I already know how to do.
Yes, this is exactly the reason why I did not want to buy this system. I did not even attend the webinar....
it is what they are calling mortgage assignment. Really just subject to deals on Short Sales. Involves finding a huge sucker willing to overpay for a house by taking over payments. BS.
ok so I read through the blog that he wrote. I do Sub 2's and bring loans current, but I am the buyer and I rent to my rent to own buyer. In this case it seems the investor is just facilitating the sale and receiving a commission. Doesn't this sound like somebody being a realtor without a license? He also forgot to mention that if the homeowner is behind on payments, somebody has to bring the loan current plus put up the down payment money.
So I guess the goal would be just to market to people who are only 1 payment behind or not at all. Also how can the investor keep the down payment money when that money goes towards the purchase? To me this just seems unethical. Even if I was a realtor in the transaction I wouldn't keep somebodies down payment money, at the most I would just collect a commission. This seems doable by just being a realtor in the transaction. This seems like a good way to make extra money fast. But honestly most rent to own buyers don't have $10,000 down. Most of mine have around $3,000. Which I'm fine with that because that would be a normal commission amount anyway.
Now if somebody is way upside down, this is completely out of the question. They would just need to be a little upside by maybe $10k like the example he gave in the blog.
Overall I think this could be a clever strategy, but I think you should be licensed to do this and the situation needs to be right. But If you are acting as a realtor in the transaction this could risk your license. What if the buyer stops making the payments? Now the person who sold the house but is still on the loan, may want to come after you and your real estate license saying you did shady work. I wouldn't want my reputation to go bad because of a deal that went south.
it is what they are calling mortgage assignment. Really just subject to deals on Short Sales. Involves finding a huge sucker willing to overpay for a house by taking over payments. BS.
The thing is this sounds like a lawsuit waiting to happen. To me it sounds like an investor acting as a realtor without a license. I can't tell you how many investor sub 2 deals I've had to do short sale's on because they went south. Do you know who looked bad and got the bad reputation. The investor who bought the house. Well if an investor is involved or realtor is involved and you assign the contract or are facilitating the sale as a realtor, then when the buyer stops making payments, you are going to be the one they want to sue. Even if they don't sue you, they can make you and your company look bad and ruin your reputation forever. They will file BBB complaints, blast complaints on the internet and social media, contact the news. It sounds like something I don't want to be involved with because it's too risky. Yes I can see the potential to make good money. But I don't want to ruin my reputation or get sued. It could be years later after starting these that something will come back to haunt you.
It's a way to "flip" short sales without having to hold the deed for a length of time, required by the bank.
BTW...if you try to close the sales page twice, you'll end up with a $30 discount.
Lynn (FL)
Lynn Henley
OK. That sounds like a good plan. This might work well if I plan to keep the property.
To assign this "Subject-to" someone else, it maybe a good idea to limit on the subject-to loan and make the new owner get a bank loan within 1 - 2 years so the ex-owner's name is not on the mortgage for longer period of time.
I think this package is sold out now. Currently, there is some waiting list for which I have give out my name and email at the their sales website.
Anyways, if that is what this course is about, then I can ask my attorney about this and see if it can be done legally in Wisconsin.
Monica Breckenridge,
There are people doing this everywhere... Has there been any legal action on someone doing "subject-to"? I was told by one expert that if the state authorities object to it, then stop doing this. They will always warn you about this before taking legal action. I have never done "Subject-to" deals.
Lynn Henley I'm not buying this. It seems like another failing system or something you can't rely on to work everytime. I prefer my original method of just buying the house and doing a fix and flip or buying as a rental. There is no funny business with this method. Banks are not allowing you to assign a contract. Plus if you do find a bank willing to allow it and you get a buyer who agree's the buyer will have to have the cash available to pay you. Most buyers barely can fork up earnest money.
Now my next thing is how are you finding your end buyer. If the realtor has the property listed with the homeowner and you are under contract, then that property is now UC with your offer. You have to provide the bank with a copy of the listing agreement. It has to be a legitimate sale and no funny business involved. You as the investor could try to find your own buyer as a For Sale By Owner and put on various marketing sites or find an investor to wholesale the property to.
I have simply just stepped out of a contract with a bank and submitted an end investor buyers offer to the bank and they agreed to pay me a finders fee. That will work. But if they are trying to sell to a retail buyer, I see this as a failing system.
Lokesh W. Subject 2's aren't Illegal and I am doing them as well. But I am actually buying the house and I'm not trying to broker the deal as an unlicensed realtor.
[I have simply just stepped out of a contract with a bank and submitted an end investor buyers offer to the bank and they agreed to pay me a finders fee. That will work. But if they are trying to sell to a retail buyer, I see this as a failing system.]
Lynn Henley Ok, wow! All that hype for something we already know. LOL. They make it sound like it's something so new that nobody has done before.
I think that's exactly what they teach them to do at Guru School. I can tell you more for $297, $397 for you and a partner. Plus for only $49 per month you can join my Inner Circle Mastermind Millionaire's Platinum Presidential Club Bus Tour Mentoring and Coaching program. :-)
It's really annoying. That's why I don't buy the products unless I know for a fact it's going to be good. I kind of figured this one would be a waste of money.
I'm in no way involved with Jeff and his course but to speculate that he's teaching something illegal is just nuts. He makes his living as a attorney and not a investor so why would he want to jeopardize that?
I've done a lot of short sale deals over the years and even gave up on them last year after closing a tumultuous deal that ended up closing the way Jeff is currently teaching them. It was a serious learning curve for me and what Jeff has done is basically streamline the process with all the correct disclosures so there's no confusion like my deal had.
Definitely not a sub2 or option contract, what bank would accept a option contract now a days anyway?
If you guys have the capital and patience to buy these things, rehab them, pay the interest on hard money and then resell them I applaud you! You must be negotiating some serious spreads?
I know this method works because I've closed a deal using there method. Just now I have the correct forms and disclosures to start them off on the right track.
Lokesh W. Subject 2's aren't Illegal and I am doing them as well. But I am actually buying the house and I'm not trying to broker the deal as an unlicensed realtor.
Thanks. I met with my RE attorney today regarding something else and asked him this question about assigning a subject-to deal to a retail buyer and he said it is legal with or without a realtor license.
Good points about end buyer bringing down your reputation by not keeping up on the mortgage but this can happen with any creative deal like lease option, seller financing etc.
If I am assigning the deal to retail buyer, then I would put a limit before the end-buyer has to get his/her mortgage.
Looks like Jeb Z. has purchased this system. My only question is that - Are there any other products/ service/ support levels that I need to purchase other that this $97 product??
Lokesh W. Subject 2's aren't Illegal and I am doing them as well. But I am actually buying the house and I'm not trying to broker the deal as an unlicensed realtor.
Thanks. I met with my RE attorney today regarding something else and asked him this question about assigning a subject-to deal to a retail buyer and he said it is legal with or without a realtor license.
Good points about end buyer bringing down your reputation by not keeping up on the mortgage but this can happen with any creative deal like lease option, seller financing etc.
If I am assigning the deal to retail buyer, then I would put a limit before the end-buyer has to get his/her mortgage.
Looks like Jeb Z. has purchased this system. My only question is that - Are there any other products/ service/ support levels that I need to purchase other that this $97 product??
Yep, there is a additional level with more contracts and forms but the basic level has the main documents and necessary information. If you have a really good attorney you work with I doubt you'd need the additional stuff. I think I spent around $300 in total. For me it was worth it considering I made $20k on the last deal I closed and this will help me avoid the hassles and stress of that previous deal.
Yep, there is a additional level with more contracts and forms but the basic level has the main documents and necessary information. If you have a really good attorney you work with I doubt you'd need the additional stuff. I think I spent around $300 in total. For me it was worth it considering I made $20k on the last deal I closed and this will help me avoid the hassles and stress of that previous deal.
So you still have to do the short sale but this is an improved method of doing short sale. Is that correct? OR is this some other method of profiting from pre-foreclosures?
I actually purchased this and I am pretty psyched about it. It does not involve the sub2 or anything illegal. It's a clever way to allow you to get paid to get out of the way so the short sale can go A to C if the lenders require the 30-60-90 day hold. I am a investor and broker in NJ and I plan to put this program to action as the B buyer/investor. If you want to try it, do some research first; it may not be for everybody but I believe for me it was a worthwhile investment. Just my two cents. :)