All Forum Posts by: Stephen Dillard

$4000 per month, $1000 per 2/1 apt. standard rent for AC. Their mortgage payment is probably between $1500 and $1800 per month.

Vacant now but ready to rent. No work needed.

I might be able to negotiate a lower amount of "profit" for them but I still think it's a deal because I am interested in the cashflow this property could create. I'm not interested in selling the property for what this market dictates. The bigger objective would be to get into this property for as little amount of money upfront as possible. This property will be worth well over 150k in the future. And if not, it is a great cashflowing opportunity. What do you think?

I know there is a lot of info on here regarding "subject to" investing. I found a great contract provided by Michael Quarles

http://yellowletters.com/assets/purchase_and_sales_agreement.docx

My question is this. Could you or would you attempt a subject to transaction on a property that is valued at what is left on their mortgage?

The property is a 4 unit. 4 2 bedroom apts. Not currently vacant. Not needing any work, completely ready to rent.

The owners are not looking to be landlords anymore but they want to sell and walk away with a profit.

The mortgage on the property is at $157,000. They want to sell at $200,000.

Not behind on payments or taxes.

Other 4 units in the area are being sold for around $150,000.

They know the property is not worth $200,000 but they might be willing to take their profit over an agreed period of time. Maybe agree on payments with a balloon payment in 2 years for the difference between the $200,000 and the remaining mortgage amount.

I would agree to pay $200,000 for the property as it would allow me to purchase this multi-unit property with a minimal of investment. It sounds like a deal to me but I would love some feedback from others who have done subject to deals before.

Hey

What I've done before is find a contractor off of Craigslist that is willing to come to the property with you and give you a free estimate of repairs. They are out there. That way, the homeowner will have an idea of the repair costs and will not be shocked when you offer your price. Plus it gives you the repairs that will be needed, in order for you to market to potential investors.

It's a way of building a relationship with a few contractors that you can use yourself and refer to other investors. While learning to estimate repairs yourself.

I have been wholesaling myself for almost a year. I focus on South Jersey and Delaware County, PA.

Good Luck

I had a seller contact me through my marketing and I am wondering how or if I can help him.

He has a 3 unit (2 apts and 1 hair salon) property in Atlantic City, NJ. He is $16,000 behind in mortgage payments. He has a balance of $93,000 on his mortgage. The ARV of the property is approx. $250k.

He is looking to get approx. $50,000 cash up front to satisfy his contractor, who is in the middle of rehabbing the property. The work to get the property in rental shape is almost complete. It seems like it would be a good deal because it is in a decent area of the city plus the potential of rental income. He has a 6 year lease on the salon at $1100 a month and the apts could rent for $950 each. His mortgage payments are $1600 a month.

I think that he would "subject to" this property to me if I get him current plus the cash.

I am not to familiar with "subject to" as this would be my first one. My question is how would I structure this and could I even "subject to" this as it is probably in forclosure status at this point? Would I have to negotiate the back payments? What would you do to make this a deal or is it even a deal?

I do hear what you guys are saying and I really don't want to come out of the starting gate just like everyone else. Making my business stand apart and making it my own should definitely be at the top of my priorities.

I have followed your site for a long time J Scott and always though that the info you shared about what you were doing in your business invaluable. Because even though we start wholesaling, for me, it's about building capital to where I can invest and rehab my own properties.

I do appreciate all of the feedback and I apologize if I came off as ungrateful or argumentative. Most of you guys on here are my target customers and your opinions should be viewed as constructive if I'm at all serious about building my real estate business. This whole site is about learning and constantly changing and adapting. I certainly don't want to be viewed as part of the 99%

I guess I'm the first to ever use a sqeeze page built by internet marketers to build a list. Seriously though, I am going to take this feedback for what it is, constructive criticism....or else this is going to go on forever. I do have a couple of good deals on my site available in New Jersey and Philly, that's all. I certainly don't want to represent anything false.

You didn't give me any feedback, all you stated was that I am looking for an investor who asks no questions, per the text on my site. As a real investor, I'm sure whoever you work with expects and should have no problem with you asking questions. If your comments were meant as constructive criticism, then thank you. If not, good luck to the people in your city, you choose to do business with.

Thanks David, no problem, I just wanted people to know that I'm a serious wholesaler, I know there are a lot of people that want to do it but don't.