All Forum Posts by: Daniel Robbins

I am finalizing the deal but I will soon have over 100 lots to build on. I have talked with several people about partnering with me on multiple things. There are a lot of opportunities in this deal but I have some questions. Let me explain. The area is unrestricted (outside city) and I can build homes or put mobile homes on these lots. I will need to install well and septic. Since this is somewhat rural, yet within 30 mins of  a major Texas metropolitan area, I was considering building some nice barndominiums because that's kind of a hot thing here in TX. There is a builder that can partner with me on that. I also have some private investors who are interested in partnering with me on either the cost of land acquisition or some of the building projects. This land is already platted and grandfathered in so that I can get exemptions for the 2 acre minimum requirement to install well and septic as long as required distances are met. My question is, how should I structure a partnership with a builder to build on the land that I will own? We will be selling the homes and splitting the profits. I am a licensed real estate agent. Also, I would like to hold some of the lots to either owner finance them or put more homes or duplexes on to keep as rentals for passive income. Any tips on structuring partnerships for the rentals? I have some real estate attorney friends that I can get to help but I thought I would pick the brains of some of you here that have experience with deals like this. Thanks in advance for any help!

@Rocky V.

Good points. 

@Account Closed

If I were to do the deal, I wouldn't be opposed to that. That sounds somewhat fair but obviously the less out of pocket the better, since there will be repair costs as well. 

Thanks for the input.

@Account Closed 

Exactly. I'd rather be the one driving and if they want to have their attorney look at it, that's fine. This is my first attempt at a sub2 deal so I already feel like there's enough risk involved without me having to come up with a chunk of cash for a deposit up front. The seller already asked me what happens if I don't pay since the loan will stay in her name and I let her know that I would put a special clause in the contract that said if I was late 30 or 60 days depending on what we agreed upon, that I basically lose all that I've put into fixing the place up and equity and she gets the house back. She seemed comfortable with that.

@Account Closed

Seriously? You wouldn't be worried about something being slipped in there out of client partiality?

@Joe 

@Account Closed

 Thanks for the tips. I certainly want to make sure all my bases are covered. They actually called their attorney to ask about doing a sub2 on the house and it sounds like he made them feel okay about doing it.

@Hattie Dizmond

It's in the 76014 area code. I sent you a PM also.

Thanks!

 Yes please PM that referral @Tyler H. Thanks!

I'm looking at possibly doing my first Subject To deal and need some input on this deal. This is very preliminary so please bare with me. The house is a 3 bed 2 bath 2300 sqft typical tract home in Arlington, TX. Needs some work but I haven't looked at it yet to assess just how much. Let's assume $2,000-$3,000. The mortgage balance is $80k but the monthly payments are supposedly under $500/mo. I can possibly rent this out anywhere from $900-$1200. The problem is that the market value for this home could probably only be about $90-$95k. Even the county property tax values have dropped for homes in this zip code($85k for this house). Is this a bad sign that the area is declining? (my personal residence taxable value in Fort Worth just went up) The monthly cash flow could be very nice IF it rents quickly. We are coming into a season that's harder to get houses rented out obviously. Several questions I have are:

What are the costs to do the Subject To deal including attorney fee for contract, filing fee, recording fee, etc?

Is this deal even worth doing without much spread between purchase price and market value?

Where can I get a copy of a Subject to contract?

I would really love to speak with another experienced local investor on the phone about this. If anyone could find the time to speak with me, please message me your phone number or just reply here.

Thanks in advance for any advice!

Daniel