All Forum Posts by: Greg Bond

@Michael Garey, Congrats on the deal!

We close them through title - obtaining the deed/ownership of the property while having our subject-to agreement that says we will pay the mortgage going forward.

We also tell people that we will help them increase their credit score because making payments on a loan on time will help their low credit!

****The ONE thing you cannot forget is the login information for their servicer's portal****

^Make sure to get that at closing otherwise it can be tough!

@Nicole Heasley Beitenman, my thoughts exactly!

Have you not done one because of uncertainty with the process or because the situation hasn't presented itself?

Wondering if you guys have used this method to acquire properties. 

I've done a few this past year and it seems like one of the best ways to help people get out of properties with mortgages around the same amount as the market value of the home.

Is anyone else utilizing this strategy or anything like it?

With the moratorium to end either the end of this year or next year - there will come a time when we could see a flood of foreclosures and it would be nice to be able to help people out while obtaining a property at the same time!

@Isaac Salcedo great that you are looking to buy property!

Did you happen to graduate from a 4-year university?

I ask because my son was able to secure a loan and the lender was able to use his degree in lieu of 1-2 years of income since he was a first time homebuyer!

Might be something to ask your loan officer about.

Good luck!

Hey BP Community,

I currently had a long time financing relationship fall-out after he left the bank I had previously worked with to refinance my single-family homes.

For you investors that love the BRRRR Method, how did you first find a bank or credit union that was willing to do a cash-out refi on your properties.

Any tips or suggestions on questions to ask when first starting this relationship? (It's been awhile for me haha)

Thanks!

@Scott Brewster Good luck to you! Would love to see an update post on how this project goes for you!

@Ari Hadar, I have bought properties from wholesales all the time and have sold properties wholesale.

To people who think wholesalers offer bad deals, I say - maybe you haven't talked to as many as you should have to find the right fit.

It took me awhile to find out who was credible and who was pushing garbage but it can be done!

Best of luck to you!

Hey @Angela Zaitz!

This part is tricky...

You would have to pay off the existing loan before you could re-fi since the mortgage is still technically in the previous owner's name.

I've heard of some people using private money to pull this off, but typically the benefit of controlling a property without having to get permanent financing from a lender is worth the 1-2 points you might get taken off if you refi.

@Scott Brewster @Steven Skinner I agree 100% with Steven.

If they do not have any contractor experience, you are taking all the risk. (I assumed they had done this before)

In that case, I would give yourself more of the split.

Also, you do need to figure out what would happen if something went wrong like Steven outlined. Problems happen all the time with seasoned investors, so with someone inexperienced it could really get messy.

@Steven Foster Wilson Sorry last post did not tag you ^

@Cindy Craft I would give them a call and ask if they manage the properties that they sell. I think this is key when buying turnkey because they already know everything about the property and the tenant. Usually you should have a guarantee on maintenance and tenant for at least 6-months, usually a year.

I see Findlay is near Cleveland, Detroit, and Columbus.

I know a great provider in Detroit personally, I sell turnkey in Orlando, FL and have networked with a lot of different providers.

If you need any recommendations, pm me 👍🏼

However, if you do go the DIY route, I would recommend again going to some REI meetups. Fixing for a flip and a rental are different and it's best to go to the people in your area to see the best practices and to network with wholesalers you can find deals from.