All Forum Posts by: Eliott Elias

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Good Afternoon Everyone:

I am looking to buy a property subject to existing financing (Subject To) in the Lake County, Florida area.  I was wondering if anyone in either Lake County or the greater Orlando area has experience acquiring property subject to existing financing?

I am looking for a subject to deal to get my first home as a primary residence.  Then would be interested in repeating the process.

Are there any realtors and attorneys in my area (or that would service Lake County) who could help? 

What will you do if you move in and 6 months later the bank calls the loan due?

 What will you do? Go ahead and shed some light on this topic.

here is what you do if its called. Pretty simple really.

1. cut a check payoff the loan
2. refi the property pay off the loan
3. sell the property pay off the loan
4. further negotiation with the lender which could include a payment to reduce the principal IE modification.

The chances of someone cutting a check to pay off the loan are zero. Have you seen negotiations with the bank to work? 

while i agree that cutting a check for most real estate investors who are young and starting out will not be an option.. but I have done it on more than one occasion when the loan was called and I was not ready to sell and I needed to protect the sellers credit at all costs as should be done.

And negotiate with the bank for sure seen those on commercial loans but as you can imagine it included capital pay down..

However I agree with your thought process for most investors who are starting their journey and have limited capital that cutting a check is not an option.

Quote from @Eliott Elias:

Quote from @Matthew Paul:

Quote from @Eliott Elias:

Red flag. They are up charging on the material.

 Of course contractors mark up materials ...    When you rehab a house and sell it dont you mark it up as much as you can ?  When you rent a house dont you make a profit ? 

No different than being a contractor .

Profit is not a dirty word 

 There is no issue with up charging if you disclose it. 

FYI: There is not 1 jurisdiction in the U.S. where Material up-charge vs cost is required, not 1. 

Do you get a "disclosure" of your up-charge on the hamburger? 

Contractors are no different than any restaurant; they acquire raw materials utilized in a construct of a finished product sold unto a final consumer of said finished product.

And all-the-more, if a GC has a great manufacturer direct account on materials they have a NDA agreement from the manufacturer that they CAN'T share there cost's or disclose to anyone. 

Quote from @Eliott Elias:

I will never self manage again. I realized the value a property manager brings when I was in a tenant dilemma where the tenants were baiting me to say something out of pocket, and use it in court against me. Granted, not all tenants are going to do this. But if you are not well-versed with landlord tenant laws, you are automatically at a disadvantage.

This is where property managers can help.

 Thanks, Eliott! How do you find qualified and knowledgeable property managers?

Quote from @Eliott Elias:

Use an attorney owned title company to facilitate this transaction. I use Ceshker Title in Austin to draft my notes.

Very helpful Elliott!  Thank you!  How much should we expect to pay for this service....just a ballpark? 

Quote from @Eliott Elias:

Do not be too eager to buy a deal. Run your numbers conservatively, and cherry pick. This is the market that can make or break investors.

Realtors and wholesalers are the best lead sources in my opinion.

 Whats the best way to find wholesalers in my area?

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Quote from @Eliott Elias:

Here is where your statement is flawed. Supply and demand is at an all time low. The only thing likely to increase with this coming recession is supply. Only then will we see the rapid decline in the housing market.

 Where is the supply going to come from? If developers aren’t building because it cost too much due to inflation, and why would developers spend all this money to build and then take a loss on the sale? I think we’re still going to face a shortage problem until rates and inflation comes down. I don’t really see a crash like people are thinking. I know everyone wants 2008 to happen again especially the investors I just don’t see it happening.