All Forum Posts by: Bryan Odom

Quote from @Caleb Christopher:

Quote from @Account Closed:

If you buy a property Subject To the existing loan and in 6 months the bank calls the Due on sale Clause or the crazy ex wife contacts the lender, what will you do?

@Account Closed What does fearmongering like this comment accomplish? Yes there are risks, but this is basically a thread hijack.

@Bryan Odom it what state you want the contract for?
For additional context, I'll tell you now that we use our own favorite contract nationwide, but I've had to make do with state contracts and other JV partners' own contracts all around the country for wraps, subtos, etc.

You don't need "the perfect contract" to get things going. A great contract is an asset for sure.

I'm not going to advocate you run fast-and-loose, because details matter... a lot. But a good contract does not a deal make.

If I can be of further assistance, hit me up directly.

@Caleb Christopher: Your comment: "What does fearmongering like this comment accomplish? Yes there are risks"

Why don't you concern yourself with the risk?
Do you buy "Due on Sale Insurance" that Pace Morby pushes?

Do you take personal responsibility if one of the transactions you help on in the SubTo community blows up ?

Did you know you can be sued for up to 7 years after you complete the deal?

Do you know that the Attorney General doesn't sue for Subject To.

He sues for the related crimes like bank fraud, wire fraud, equity skimming, fraudulent schemes and artifices and so on. Some pretty hefty stuff.

For your audience's review, the district attorney's office in Alameda CA said it takes a year and a half and costs the investor $100,000 to fight their lawsuits. If he is talking about it, it means it's on their radar.

Is that enough risk to get your attention?
I wouldn't dismiss it so lightly.

 I guess they don't teach that in the SubTo Community, eh? Shameful. Investors beware.

Show your closing attorney or escrow officer this, they need to do their homework and know this is happening everywhere else, yes creative financing can be tough in Blue States   below is a copy of a HUD1 which is a Federal Form - see line 503

I have one, I can email it to you. 

You can use the C.A.R. purchase agreement, which you can find online. However, I would recommend having a state attorney draft one for you. They can tailor the contract to your business while ensuring it complies with state regulations.

I do know that Jerry Norton shared his contracts online, this is the link https://flipster2019.s3.amazonaws.com/files2/Wholesaler-Cont.... You should still consult a state attorney to review them and make sure they comply with state regulations  

Quote from @Bryan Odom:

Hello All

I'm a new investor and haven't done my first deal yet. I'd like to find a deal and then ask a more experienced investor if they'd like to be  partners on it. I envision suggesting a 20-80 split of the profits (I'll get the 20%) and I'll get to go "shadow them" as we go through the process of closing the deal. 

When I've found a good deal, what is the best way to approach another investor? Should I have paperwork already prepared? Does it make sense to post about it in the forum?

Thanks in advance for your time.

So much of what you are asking is related to knowing what a "deal" actually is. And, that definition varies from investor to investor. I'm pretty flexible because I use a lot of available techniques, but I see a lot of people claim they have a deal that I can't figure out how to make money on it.

So first and foremost, learn what makes a "deal" to the widest group of investors and don't be insulted if someone says it isn't a deal. It may not be a deal to him, that's part of your learning process.

Have everything about the deal ready and know it inside out, but I suggest start connecting with investors now. I used to go to 2 or 3 meetups a week and made some great connections. You will be surprised how many investors are willing to JV with you if you have a great deal!