All Forum Posts by: Deb S.

Is it possible to put a lien on it for the amount past due?

@Marcos Carbi I am sure the seller is very aware of the roof situation in Florida and the impact for trying to get insurance.  I would most definitely ask for a credit at closing for AT LEAST 75% (negotiate from there down to 50% if needed).

Any other buyer of this property is going to run into the same issue.  The seller knows the roof needs to be replaced - anyone in Florida knows about roofs!  So now that the seller has squeezed all the juice from the lemon he's trying to pass the cost on to you.  I wouldn't pay the whole thing.  No way.  The market is cooling off and sellers don't have the leverage they had a few months back.  Ask for the credit and see what happens.   

@Steven Wachtel I also live in Florida and have a HELOC that I took out last year. Every time the fed raises rates, your HELOC rate will go up by whatever that was - last was .75. That's how it works. It is not a fixed rate unfortunately. I started out last year at 5% and I am now at 6.99%. Still relatively cheap money compared to your credit card rate (which typically also goes up when the fed raises rates) or interest rates back in the 80s.

Remember you're only paying interest on the amount that you use.  Do you plan to pull out the whole $100k? Hope this helps.

Deb

@Zachary Menear absolutely.  Not sure if it is allowed here so shoot me a message and I'll give you the info.

@Chida Truong I am posting the private message that I sent to you with my thoughts about Pace Morby's Sub To Mentorship because @Joe S. seems to have an opinion on a mentorship that he is not part of - but I am.  Hope this helps those of you who have questions about Sub To:

This program is worth every dime....IF you put in the work to find deals. The community Pace has built is amazing. There are 'daily dials' that are hosted by some of the group leaders and you practice cold calling under different scenarios (seller who has no pain, seller wants too much down, seller says they're too old to do owner finance/refi, etc).

There are daily Zooms on a variety of topics as wells just Q & A where Pace will answer any questions you have on anything you might be working on, etc. He's brought on his own attorney, another business owner who ensures if the 'due on sale' clause is triggered when buying subto that he takes care of all the paperwork with the bank and title if needed, etc.

The knowledge sharing is like no other. Pace is ALWAYS giving.... information, templates, scripts, free legal contracts he paid for that his attorneys have drawn up, etc. This is not one of those mentorships where you join and you never hear from the 'subject matter expert' again. I have Pace's phone number and his email and have corresponded with him through both.

This is a genuine mentorship that is more like family. You have a question that can't wait? Post it in the Sub To Facebook group and you will get numerous replies to help you. Found a deal but not sure what to do? - squad up with someone else in the subto group and they will make sure you successfully close it. One of the biggest things that Pace teaches is to give more than you take in the group and believe me, so many students offer to help those that have not closed their first deal yet, share information/lessons learned and also share their successes as well as their failures - because you can learn from both.

Also, this is a LIFETIME membership in a group that supports each other. Everyone in this mentorship wants you to succeed.  

If you do decide to join, you can put my name and my email for $400 off the cost of the membership.  Inbox me for the link as I don't think that is allowed here.

@Joe S. bigger and wiser than his time?  You're kidding right?  You think A & E would give him and Jamil their own show if they didn't know what they are doing?  Check out season 1 called Triple Digit Flips.

@Marco Santarelli it's a real bummer that one has to be an accredited investor for all these opportunities I see.  Not everyone meets that criteria but there are lots of us investors that are experienced investors with 6 figures to invest who are close to 'accredited' status. :(

You need to build some credit even if you want to do arbitrage.  The landlord who will rent to you is still going to want to do a background and credit check.  Apply for some credit cards: just do a google on 'credit cards for new graduates' and you will see plenty of sites where you can apply.  Then use them!  Charge your gas, food, makeup whatever and make payments so that you build a credit history.

You have to build a foundation before you can build a house.  I realize you want to do this immediately but you are asking a complete stranger (potential landlord) to take a risk with you but he has no information about you to gauge how much risk there is.

@Amy Zagorski welcome to Florida! Since your husband is still looking for a job and your teacher salary isn't huge (teachers are so under paid in Florida), you may have to stay with your in-laws a while or rent until he has some employment history.  When applying for a mortgage (making assumptions here), the lender will want 3 months of bank statements, W2s, etc.

I agree with others here that house hacking (living in a house you are renovating) is the way to go AND in your situation, buying a duplex or similar income producing property will help if you apply for a mortgage.  The bank will consider the income from the property as well as your W2 income when qualifying.

I assume coming from NY, you may quite a bit of cash put aside already.  Don't use it all on a down payment for one property!  Interest rates are very cheap so use the bank's money.  Then you will also be able to act on any other opportunities you see and not have to wait to sell one property to buy another.

Also if you are going to seriously get into RE investing, open a LLC to protect yourselves and put the properties in the name of the LLC. You can do this yourself by going to the website: https://dos.myflorida.com/sunb... and submitting everything online. Hope this helps and best of luck to you!

@Ruth R. Have you considered asking the tenant if he might be interested in buying? Since he's a vet, he may qualify for a VA loan or other resources available to him. Since he's been there so long, he may consider buying over having to find another place to live and move all his things. Worth asking..... Good luck to you!

@Kevin Harrison Flood insurance is only required if your home is in a flood zone.  I live in Florida about 30 minutes from Cape Coral and pay just over $1000 for home owners insurance - but my house is not in a flood zone.  When you look at a RE listing (for homes in Florida) you want to see Flood Zone X which means no flood zone - so no flood insurance required.  So you can ask RTR what flood zone these homes are in.  Hope that helps.