All Forum Posts by: Account Closed

Owner-finance it out on a 2-3 balloon then call it a day--- those numbers look perfect for it!

Subject-to is no different than any real estate transaction... the key is to disclose, disclose and over disclose. 

Anyone can sue anyone for anything. If what you are doing as a broker is so safe and simple, why do you have E & O Insurance? There is risk.

Before it gets personal, review the post please before you try to be smart.

@Jim Cummings typical BP response. Cool. 30 yrs experience, and you just called Contract for Deed “wholesaling.” Nice.

@Alex Hendershott

Each state requires different documents etc. Understand what you are buying and selling is not a deed, but title aka “rights” to the property.

If you really want to do a “retail sandwich,” you will be layering contract for deeds. Where it goes bad and can get fraudulent is buyer A doesn’t know you sold on contract to buyer C.

You want to dump 30 pages of disclosures when simple clauses and notices will do.

All of these clauses you can find online and add to a standard contract. Then—- I would have your attorney review (to help you save $).

Here is something to add as well. A “Hold harmless” clause- stating the general terms. Seller A is aware Alex H is a real estate investor and will be reserving the right to sell property x via contract, outright etc.”

This clause alone should save you quite a bit of trouble. It can’t save you from having to go to court ever, anybody can sue anybody for any reason, but it can show the judge that you are open and honest.

This is also why my phones now record closing calls and conversations fyi.

Shocker: You will not be dealing with the most sophisticated sellers at times and there are reasons for why they are distressed.

Learned my lessons and only deal now with higher end.

Hope this helps

@Jim Cummings if you are not in this space, why comment?

@Alex Hendershott

What you are doing is not wholesaling. It is Contract Assignment.

Biggest problem with this side of the biz is honesty, don’t commit fraud or advertise fraudulently.

Don’t say you are the buyer, if are not. Be honest and disclose terms.

“Dear seller I am an investor and I assign contracts to retail buyers...” etc.

You do not need a special addendum. One contract stating the terms etc. with an “assignment clause.”

If you are a good, honest person and want to build a business you will tell them upfront and make it to where they approve whoever you are assigning it to!

Feel free to make a few hundred bucks as well every month in the spread. But if you do that, you will carry responsibility moving forward to that seller and be responsible for the note.

Anyway- feel free to DM. Just asking you don’t kill the golden goose ;)

@Joseph Cacciapaglia still way too early. People are in the squeezing phase. Staying in their home, recieving their mortgage deferrments/landlords are working with tenants, banks are working with landlords... this is going to take awhile.

In regards to not selling. I wouldn’t if I had a good portfolio, or “thought” I did lol. Big difference.

@Joe Rudolph I just closed a subject-to deal. In higher priced areas. Owner-financing/Subject-To deals make more sense (and are everywhere). Especially with the landlord/Tenant laws in Oregon. ADU's add value but the time it takes with permitting, worming with contractors is a pain. You can spend that time more wisely just finding more properties etc.

Oh... and thats before talking about the delays with the city due to CV.

@Dan Heuschele if you have not done one, why are you giving him info? Makes no sense. Give him some names of someone who has done one and been successful etc. and leave it at that.

@Chris Lynch figure out if it cash flows. Put a contract together and close it if the #’s make sense.