All Forum Posts by: Ben Roberts

Thanks for the tip, @Curt Davis!

I'm in Memphis and typically look for wholesale deals.  I came across a deal too thin to wholesale but I think it would make a great Subject To (sub2) deal.

The current owner owes almost $50K, the house is worth around $52-$55K. She says that her monthly payment, PITI, is $494. Rents in the area, for this size home, run $800 to $850.

The owner can't afford to make the monthly payment so, in a rush, found someone who is paying only $600/mo.  The tenant is leaving next month and the owner is tired of being a landlord.

Does this sound like a good deal to anyone else?

What questions have I not asked/answered that I need to?

Having never done one of these before, what steps do I need to take to make this happen?

Any analysis/help would be GREATLY appreciated.

Ben

Welcome to BP! I'm just getting started myself closed on my first deal in Memphis yesterday. My advice to you, don't waste time looking for buyers until you have a deal. If it's a deal, a good deal, the buyers will always be there. In my first batch of yellow letters, I sent them to folks who had rental properties that had been available for at least two months, I had two investors call me. Both said that they weren't interested in selling but wanted me to let them know if I came across any other deals in the neighborhood. It was awesome! When I got my first deal under contract, I posted it ok Craigslist with some pictures, a painfully honest description, and all of the numbers. I received more than a dozen phone calls or emails and had a signed contract within 10 hours. I know that they won't all be that easy but you don't need to waste time looking for a buyer until you have something for them to buy. It's a distraction from your core money-making activities.

@Derrick Craig or @Curt Davis , either of you know anyone who has or is doing these in Memphis?

Has anyone in Memphis done any Subject To deals?  I'm currently looking at 3 deals, all have the potential to be good Subject To deals.  I've got a million questions but really want to talk to someone who has done these in the area.

Thanks,

Ben

An out of state investor contacted me about a home he recently purchased in north Memphis, TN.  It's a 4/3 about 1800 sq ft, with a garage. Built in 2006 in a heavy rental area, a B class neighborhood.  He bought the home in 2014 for $81K and has not had a pleasant experience with his current prop management company.  He's at the point that he just wants out of the house.  There's really no equity here, the home is probably worth $81-$83K.  Rents in the area for comparable homes are $900-$950. 

He doesn't want to sell with an agent because he'd have to up with cash out of pocket.  I thought about trying to do a 'subject-to' agreement then renting the house out myself or offering it as lease-to-own.  Are there any other options that I'm not considering? Even if I don't make money on the deal, what sort of options can I offer or advice can I give him?

Thanks

Ben

Following

Brian Ewell if you'd like, I'd be happy to act as your "boots on the ground" in Memphis. I do the same for a number of other investors. 
In Memphis, one street in any direction could be the difference between a "D" class neighborhood and an "A" class neighborhood. 
I'll drive by the properties, take some pictures and video of the house and surrounding neighborhood. Give you as much information as I can about that part of town. PM if you'd like some help.

Fred Dray if you'd like, I'd be happy to act as your "boots on the ground" in Memphis. I do the same for a number of other investors. In Memphis, one street in any direction could be the difference between a "D" class neighborhood and an "A" class neighborhood. I'll drive by the properties, take some pictures and video of the house and surrounding neighborhood. Give you as much information as I can about that part of town. PM if you'd like some help.

I just listened to the BP Podcast Ep. 49 with Amanda Han and caught a little nugget about investing using a self-directed HSA.  After doing a little research (read: half an hour on Google) It seems that I can deposit up to $3350/yr ($6,650 once I'm married) tax free in to an HSA.  The earnings grow tax free.  Qualifying withdraws are tax free.  Money left over rolls to the next year.  If I change insurance plans, I can still keep the HSA.  AND at 65, I can withdraw the funds, tax free, for any purpose I choose.  

I am a wholesaler in Memphis with a couple of deals under my belt. I plan to do many, many more while keeping my day job. So investing via a self directed HSA seems like a no brainer to me. Is there anyone out there doing this? I searched for self directed HSA and found 21 posts, most of them less than helpful. What is the advantage / disadvantage of doing this versus using a self directed IRA?

Thanks, 

Ben