All Forum Posts by: Francisco Hernandez

There’s a lot of negativity out there concerning the risks (especially to the seller) of subject to deals.  To sum up the risks to the seller; the seller remains liable on a note which is secured by real estate they no longer own; the property sale has violated the due on sale clause of the mortgage or deed of trust and the note can be accelerated by the lender; the seller’s credit capacity is impaired because he has debt with no offsetting property equity.  The risk to the buyer can be summed up as : violation of sue on sale can lead to note being accelerated:; assuming buyer is an investor and seller a homeowner the buyer will probably be named in a lawsuit should either the note be called or default occur.  

Although there are safeguards that can, and should be set up, this merely modifies the risks, it doesn’t eliminate them.  So my thought on this is that I wouldn’t (personal preference) engage in a subject to transaction with anyone other than an experienced investor on the other side of the transaction.  I feel that if both parties understand the risks; if real estate investing is their business, if both parties are sophisticated and experienced investors, and both decide the risks are worth taking, then subject to can be a workable tactic.  The one exception would be a transaction where the seller IS a homeowner where the loan amount is small enough that I could cover a payoff should it become necessary out of my liquid assets. 

I’d like to hear how other investors feel about using “subject to” as the advantages of (1) no qualifying, (2) lower interest rates and (3) no financing costs seem like enough to turn a marginal deal into a worthwhile investment. 

Hi we are new to wholesaling here in Utah am wondering if you know where I could find contracts that are legal in Utah. We have some but they are good for New York, and other states back east.

I’m ready to jump in the world of real estate wholesaling and i'm seeking guidance from professionals. I’m eager to learn first hand the wholesale process - finding properties, building a buyers list, ins and outs of contracts and networking with agents, flippers and investors. If you have experience and can share your insights and/or give a walkthrough on one of your current deals or one of your recent deals. Let’s connect and potentially be future partners.

Hi I am wondering if anyone could tell me if title companies are the best way to get leads for wholesaling? and if so could any one recommend a few good title companies.

My husband and I are investors in the Fayetteville, NC area. We are looking to expand our portfolio and would love to connect with other investors, wholesalers, banks, etc in the area but we live in California. We have a great agent and have worked with several contractors in the area. Everything I’ve read or listened to says going to meet ups is the best way to connect and build relationships. I’m obviously unable to do that in the area we are investing in so my question is, how do I make these connections from across the country? Ive joined several FB groups but haven’t gotten much in the way of responses from my messages. Thank you for any advice, tips or tricks.

I'm analysing cities for buying my first rental. During my search I came across 6+ listings from the same seller all with tenant in place making some amount of cashflow, some of them even making $500+ cashflow(by Brandon Turner's definition).

On paper, it seems I'll make cashflow the moment I buy the property. Not sure if this is "too good to be true" category. I'm a newbie in real estate and seeking some expert advide.

Hello everyone,

Longtime lurker here, I've been educating myself about the space and saving up capital to start my real estate journey. My goals are primary to BRRR and value-add. Basically to buy a property below market value, add value/equity, rent, and refinance, however, I do want to draw out a lot of my capital or leave at most 20-30k in the property (or whatever the more experienced people think).

Because of my goal, the Canadian real estate market doesn't seem particularly great for this, especially with the overwhelming average and median prices of homes, so I believe it would be in my best interest to invest in the US market which has much better prices and can give you a better bang for your buck. I believe that starting out, you would need to find an investor lawyer and accountant to help you set up the legal entities in both countries, then research your market, find financing, build a team, and so on. 

I would love to hear from more experienced people who have done the following in the past, what your thoughts are, and any advice you could provide

Good morning All,

I hope all is well, I would like to share my issue with you all for some advise on how to tackle this problem. Last year around this time my dad was sick and I have to move overseas since he died to handle a few family stuff. Before leaving, I was wrapping up with my fix and flip with actually was supposed to be a one year fix and flip but turned out to be a 6 months one instead and I was also penalized there. Now the property is in foreclosure and they want to pay the total amount right away which I don't have the 200k. I would like to know what are the options that I can use to be able to keep my property. Aslo the property is under my wifes name not mine. Please if someone can guide me, I would be really grateful. We also retained a lawyer so the property won't forclose. I look forward to hear from someone. Thank you very much in advance.

Hi Bonnie thank you for your response, so this new build actually is already in plan to be built but pending for until they find a buyer. They have priced this 4plex to sell for 775k with maybe couple extra thousand in case the welling is deeper than anticipated or if i decide to use better finishes. The builders who are assigned are good builders and my friend who recently just bought one of these 4plexes in the neighborhood said his experience was good. From what i’m seeing in the market here now is in most cases it’s actually cheaper to build than to buy which is crazy.

You got it right Alaska is very expensive and it's hard to find a deal where it makes sense with such high labor costs it's insane. Even trying to do the BRRRR is hard and takes a lot more work to find the right deal. unless i do the work myself which i am willing to.

I am young and quite new to the REI space but for the last several years i have consumed RE knowledge daily thru a couple trusted sources. i understand what im trying to do is definitely no easy task but with immigrant parents i was raised to work hard so i will adapt to whatever is necessary.

My concern is, is this the correct path i should take in order to reach my goal of 100k a month in cash flow by 30? i want to make sure i am using my money in the most efficient way. but i do not want to get stuck in analysis paralysis so i just need to rip the bandaid and go from there. I can save money very fast considering i live a very frugal life and work a lot. considering how expensive AK is i will definitely have to divert and explore the lower 48 market at some point in which i have a few in mind already.

it seems you specialize in MTR do you have any tips for me? btw the 4plex will be 25min away from the nearest hospital so little further than i would like so idk how well it will do for nurses?but it will be close to construction areas as this part of town a lot of work is happening.

I've seen a vacant lot for years and have had what I feel the perfect plan is for it.  It's in a part of town that is being revamped from former industrial to nice stores, shops, restaurants, and businesses and I believe there is even some money offered to help revamp that part of town if you purchase something and help improve the area.  

The lot is finally for sale and in the listing it states almost exactly the idea I've had for it.  We have absolutely no clue where to begin but in speaking with our lender he stated that we would have to find an investor with ground up experience to even begin to be considered for a loan of this size.  

What is a good place to start?  Since our investments are currently elsewhere due to the price of things locally, we are not networked with investors or other local landlords.. Suggestions would be greatly appreciated.