All Forum Posts by: Account Closed

Can someone give an example scenario that would be a good candidate for doing sub to? Especially as relating to the purchase price. If the seller owes nearly or very close to what the property is worth, how do you make money? If the owed amount is close to the ARV, then its probably a better short sale candidate, right? I think the general idea ive seen discussed here and in articles is that you take the deed on a subto, then rent the place if it will cashflow.

A friend of mine in the Fort Worth Texas area has been going through some hard times with job changes, family trouble etc, and he says his credit has been damaged. He wants to buy a "fixer upper" and do the rehab himself for his own residence. I suggested he consider a wholesale deal or some investor type deal, but that he would typically need cash to close. This is the problem, no or little cash. He does have a high paying job however. His ARV price range is about 120K.

What is the best option for him? If it takes him 1-2 years to fixup, then the financing he gets in the mean time could eat up any savings from getting a whosale price. Are there other types of financing for rehabbers? Govt programs for rehabbers?

Since he is in no hurry, I think the best option for him, is to simply save 30-50K in cash, and THEN go looking for a wholesale deal.

I just got a PO box in my area. I went ahead and got the medium sized version which runs about $75/yr.

Are the following items deductible expenses for an LLC ?
- state fees paid to open the LLC
- fees to open and maintain a post office box
- cell phone plan

Yes Scott. I think that for the present, if I come upon a deal that will require a short sale, I will simply pass it on to someone I know in the area that wants to buy and has is willing to deal with short sales.

Actually, come to think of it, the house Im living in now comes to mind. I met the mortgage lender at a local "mailboxes etc" and had the notary public present. Pretty straightforward, just needs to be during business hours and the notary needs to be there that particular day.

Or can you just have the sellers come meet you at your title company? Ive picked my title company such that its near the area Im looking for properties in.

Ive read that when you get a seller to agree on a price and sign the contract, the signing needs to take place preferably at a title company or in front of a notary public. Is everyone doing this or are you getting the contract signed over the kitchen table or the local restaurant?

Just read the article above. I was wondering about the suggestion to ask for $500 or so up front in case the seller backs out of doing a short sale when they find out there will be a deficiency judgment. What about making it refundable at closing instead? Many of these sellers will be at their wits end and any extra funds spent getting out of the house is going to be painful and possibly a deal killer.

thoughts?

Aaron - doing the deal with a sub-to sounds like it would work. Anyone else care to comment on this approach?