All Forum Posts by: Arron Paulino

For simplicity, it's a way that some people choose to take title. At closing, you would deed the property into the trust and the new buyer would have beneficial interest of the trust. So that's what I was simply saying was a moot point on the front end discussing with a seller. The question is are you fine with someone taking over your payments and leaving your loan in place. if you are fine with that, then the Sub2 buyer should simply instruct the attorney and/ or title company how they want to take title of property. Like I said, I am not telling you to sell your property Sub2 and I'm not telling you not to.

@Arron Paulino

Responding to this and your other posts, has any actual real live investor from Memphis offered you cash? Not - Sub2, owner financing, wholesale, contingent offers, but hard verifiable cash.

Someone who knows and works the area regularly?  

If you need an exit for a reset this may be an option you want to investigate further.  

I'm not here to promote or denounce Sub2. I will say this, there are a number of investors if you want to call them that that have VA's that are making multiple offers for them. Now you said they wanna buy it in a trust account.

Here’s my rant.. talking big words is quite stupid for them to do. It’s juvenile behavior. The confused mind says no so by them using difficult to understand terminology….They’re confusing people.

@Arron Paulino you can find some great information online (youtube) from Pace Morby on this subject.  In a subject to transaction the buyer is taking over the responsibility of the seller loan without the lender knowing about it.  If you do it correctly and have the correct paperwork its a great way to buy property with little or no money down.

Seller financing is the "Seller" acting as the bank with their equity and loaning the buyer that amount of money for a negotiated period of time.  This is also a great way to buy property for a longer term.

You should do your research first.

Good Investing...

Consolidation versus liquidation, as in consolidate the portfolio rather than fully liquidate from RE. Sell these 4 properties, go buy 2-3 significantly better one's with better reserves and really extract the value from REI by buying distressed & fixing up, and holding.

These aren't set it and forget it type investments. As much "passive" income is pushed here, or turnkey, etc., these are active investments for one for two these are physical assets. They require significant more work than people account for.

The first 1-5 years this will yo-yo, so be over equipped for it. Buying distressed & fixing yourself gives you the full intel on the quality of your product, buying 2 rather than 4 you can pay for better locations, then having reserves gives you a healthy peace of mind.

Hey Arron, looks like you got some great advice from some users on here. I am glad that you are aware of your situation and are cutting your losses before convincing yourself that the numbers "will" work eventually. As you have experienced this is the nature of these transactions. That being said I do want to leave you with a few pointers for your next deals so you don't run into same scenario

1. Don't invest out of state unless you KNOW the neighborhood. Many investors, especially those from NY and CA are pushed to invest out of state because their price points are way too expensive. This is a good reason to pursue RE out of state. But investing out of state is far riskier when not fully understanding the market. You must rely on people you don't know to tell you what works and what doesn't. this is why many fall into the trap of great "on paper" BRRRRs. We have a lot of these cruddy deals in philly. Sure you get your money out, but then you can't rent the darn thing or sell bc no one wants it at that inflated price, and you realize your tenant pool is doo doo

2. You're better off owning one solid househack in the long term than a bunch of these lower class deals. Just consider your own market. Looking at the history of the market, your appreciation will be 10x stronger in your market holding just 1 property than trying to manage 12 doors out of state. Having one solid 1.5M property is better than 7-12 cruddy 120k properties. You'll thank yourself in 10 years and will have all of your hair from not managing all of those units...

3. Think long term. Don't be concerned about appreication after 1 year. Where is this area going to be in 10, 15, or 20 years? Many people underestimate the power of a couple absolute solid PAID OFF Class A RE!

Sometimes its not about the quantity of RE, its about the quality of the RE- this applies in many parts of life

Good luck!

Hi @Arron Paulino - This sounds like some properties we have delt with on the south side of Chicago.  Not fun or enjoyable in any form or fashion.  

We made specific trips to the local police precinct to speak with the drug task unit, but importantly, we networked with someone who absolutely knew what they were doing.  Having someone who has owned and operated a similar asset is worth its weight in gold.  We could also tie our security cameras into the police system as part of a local program here in Chicago.

We also paid "house sitters" to keep the squatters out!!