All Forum Posts by: Brooks Rembert

I recommend it. They get updated info pretty fast. We had someone applying to move into a rental of ours and they were in the process of being evicted. 

Smart Move had the info, so we politely declined their application. 

Were you upfront with the seller that you were an investor and may end up selling it for a profit? 

If not, probably best to do so next time. 

You could also write a clause in the contract next time, after your full disclosure, that allows you to get in the house and even put a sign in the yard. 

I saw a great quote on here once that said something to the effect of "you can't motivate an unmotivated seller". 

Patience is the key to finding the Goldilocks deal that's just right for you. 

@Mike H. and everyone else. Thank you for the input. In our town and our present situation, it's definitely something worth taking a closer look at. It is in a desirable neighborhood, it is most likely going to appreciate more than the surrounding area, and it is worth it to us to grab a house like this for our portfolio, particularly if the seller is willing to give us the financing.

I'll keep everyone posted on how things go tomorrow. I've told him I won't be prepared to talk numbers tomorrow, but will get as much more information from him as I can.

I have a lead from a landlord who is currently looking to offload some properties. Long story short, desirable neighborhood, nice home, free and clear. 

It'll rent for $2,200-$2,300 per month with no problem, but is going to cost me probably $325,000 to get.

Is this worth it? With nothing down and giving him 5%, I'm looking at $1,880 per month PITI.

@Kate B. I'm not quite sure what you're asking, but we use www.erentpayments.com for our tenants to pay.

The advantage is we know the money has cleared prior to it being deposited into our account. 

If I'm off base with what you are asking, please let me know and I'll try again.

Subject to is best used when the seller is very motivated and will allow you to simply take over their payments with the future promise is sales proceeds. 

Example: home is worth 150, they owe 100. You take over payments and in 3-5 years,  refi and finalize the same by paying off the existing mortgage.  The sale price is negotiated in advance prior to taking over the payments. 

Yuck,  we bought our primary residence three years ago from them and in the middle of the process,  somehow Deutche Bank took over and the process took about 4 months AFTER we had a ratified contract. 

Patience is mandatory. 

@Brian Gibbons To make sure I'm tracking...go with a lease option vice Sub2? If so, how exactly would I proceed? Would I simply lease for PITI and assign it to a future tenant/buyer?

@Ned Carey @Brian Gibbons @John Horner Gents, she's agreed to a Sub2. Now what!?!? I'm kidding, but only a little.

Nothing has been signed yet, just a verbal agreement in principle. Here's what I'm seeing from my foxhole...

The house truly is worth $340,000-$350,000. Very desirable area in Williamsburg, gated community, golf, marina, yada, yada. We've verbally agreed to $320,000. She currently owes $282,000.

PITI is $2,084 and with HOA equals $2,249. Current renters run a group home for mentally challenged adults and pay $2,300 which is below market for the area and have expressed concern about having to move if the house is sold.

I'm looking two or three options:

1. Paying PITI only; $2,084, keeping rent at $2,300 for a year and increasing 1-2% per year and making them pay HOA since they presumably receive the benefit of the facilites.

2. Paying the total of $2,249 and having the group sign a three to five year lease of $2,500

3. Any other ideas you guys have.

If I can get a 5 year term from the seller, the home value should be up to $360,000. Even if it's not, I've still got $20,000-$30,000 of equity based on today's value.  What then? I've controlled the property for 5 years; what's my logical exit strategy?