Quote from @Account Closed:
Quote from @Christie Gahan:
Quote from @Chris Seveney:
Quote from @Paige Kuhbacher:
@Nate Marshall
I've been on BP since October 2020. I am a full time realtor and investor. It has not been a priority of mine to sit in the Bigger Pockets forums and post/comment on everything. I do however provide input and value where I see fit.
I would be happy to help answer questions or clear up any confusion anyone has about the Subto mentorship. I joined in March, but have been involved enough to see the massive potential it provides to investors looking for a supportive community.
Here's my calendly link if you'd like to set up a call: https://calendly.com/pkuhbacher
So are you saying people pay $7,000 to join a community?
Curious how much is joing a community?
Since joining, how many deals have you done?
Do they tell you upfront how much money you need?
Do they explain what happens if a borrower files BK after a sub2 deal?
Do they explain happens if the person you sell to files BK is a POC filed on both loans?Do they have a counter of how many people are in the community and how many total deals they have done?
Does the sponsor of the group share addresses of properties they did sub2 and how many deals they are doing?
Chris: What does happen if they file bankruptcy ? Does it cloud title?
Your Question: "What does happen if they file bankruptcy ? Does it cloud title?"
There isn't a clear cut answer to that.
If the Subject To was done legally, properly, safely, then your attorney will get the court to release the property from the bankruptcy and you are then under obligation to pay off the loan, pretty much immediately. The loan is secured by the property and I doubt the lender will release the loan unless you pay it off. They will likely call the Due on Sale.
If it was done according to the "Subto community" standards, all bets are off as to what will happen. There are too many variables. But, for sure, It will be an expensive, legal entanglement, with no clear path to a solution.
I've seen these lawsuits go on for a year to a year and a half and you must be making the payments even if you are uncertain of the outcome. I suggest you get properly trained and in my opinion, from what I've read and seen, the "community" is not the choice I would make.
It seems to me that people who are in a good place financially would laugh at a sub2 offer. This means that people who accept a sub2 offer are not in a good financial place. If you are not in a good financial place , you are more likely to declare bankruptcy.
Anybody arguing my logic yet?
So, if your sub2 seller declares bankruptcy ... and you did things correctly, you have a very short period of time to refinance.
If your sub2 is not done correctly, it will be tied up in court you will have to hire a lawyer. And there is no guarantee that you will get anything? No guarantees to time line?
What is the appeal of this business model? These are not the financial profiles of people you want to do business with. All they have to do is hire a BK attorney and you are toast.???
Is this really about the buyers? A lot of people feel shut out of buying in this housing market. Is this course aimed at them? Is this all about selling people hope? Is this even about investing?
Why have the sellers not been able to sell in a market with very low inventory? It seems like folks are hunting for unicorns. And when you find one, you have to worry about them declaring BK, which seems like has a high percentage of happening.
The tried and true method is hard work and unpopular. Think Dave Ramsey, Rice and Beans, Budget, a second job ... not fun or sexy. Just work with a goal. But, it has a much higher success rate. Less debt, more cash and a better credit score have a very high success rate.
