All Forum Posts by: Greg Bond

 @Steven Wilson Have you heard of the term Subject-To? 

You can purchase an owner's property by taking over and paying their existing mortgage for them.

Sometimes sellers do not like that they still have an attachment to the house/property, but since the mortgage is still in their name they get the benefit of an increased credit score from paying down a debt.

I have bought 3 properties like using this method, this year - and I expect to buy many more this way.

It's great because you don't have to get financing (it's already in place), and you do not need that much cash.

In one instance, I only had to come up with $5,000 and then rented it 3 weeks later 👍🏼

This is one of the best ways to help owner occupants in pre-foreclosure/foreclosure.

To help landlords, you'd probably just have to pay cash and then either try and pay for the non-paying tenants to move out or wait until evictions open back up.

Interested if anyone else has any other creative strategies!?

@Scott Brewster In my opinion you are getting a sweet deal!

Most private lenders get 1-2points up front and then 8-12% interest with a 3-month minimum. 

YOU are getting equity in the deal and way more then what I stated above^

I would keep this contractor happy because there are many private lenders out there but it's hard to find good contractors, especially ones that will split profits 50/50!!

@Steven Foster Wilson I have heard that those that were already in trouble before will be in even more trouble now.

However, I think as entrepreneurs we need to see this as a great opportunity.  

In 2008, a lot of people got hurt, but a lot of people also made a fortune.

For many of us in real estate, we need to be ready with solutions for those that will be facing issues (landlords who cannot afford their mortgage, owner occupants who cannot afford their mortgage).

If you can find ways to help people in these situations, you will find prosperity!

@Jingwen Ni Thanks!

@Charles Carey, congrats making the jump!

I was managing 100-150 SFR at one time by myself before software (all collections information was on a yellow pad)! Those days were not my favorite haha

The first thing I ended up doing was hiring an admin who helped with collections, maintenance coordination, and owner communication. 

This was a gamechanger and would highly suggest it as you scale.

As for right now, a way to differentiate yourself that has worked for me is stressing that you are an investor yourself. I would share tips I learned - buying fridges/microwaves at garage sales for cheap, never accepting a years worth of rent upfront, etc with property owners and they ended up using me because I learned all the best methods the hard way!

Network and share your knowledge. It will take awhile but you will succeed!

@Vincent Grigsby Congrats on the deal! Hope you can make it work, would love to hear any updates as they come up!

Investment Info:

Industrial commercial investment investment in Deland.

Purchase price: $1,075,000
Cash invested: $500,000

This is an RV & Boat Storage Investment!

I utilized the 1031 Exchange from a 4-plex small apartment to buy this property with another investor.

We ended up buying the neighboring property and using a commercial loan to expand the facility from 98 parking spots to 200+!

This has been one of my favorite projects yet 👍🏼

What made you interested in investing in this type of deal?

I was always in Single-Family Rentals but started to feel my portfolio was not balanced enough. After getting hit pretty hard in 2008, I wanted to get into an asset class that was more resistant to economic downturns. I was at a storage talk at my local REIA and heard it performed the best of any real estate asset class during the downturn. Thus, I started looking and talking about storage non-stop until I found one!

How did you find this deal and how did you negotiate it?

I found this deal through a broker friend. The owners were older and wanted to retire.

How did you finance this deal?

They owners gave us owner financing on the deal which was really sweet!

How did you add value to the deal?

We raised rents, automated their systems, and bought 8.8 acres of the surrounding land to expand the facility.

They previous owners still ran credit cards manually!

What was the outcome?

This has been one of the best deals I have done and currently are in lease-up mode since the expansion was just completed a month or so ago.

Lessons learned? Challenges?

Hiring the best staff makes all the difference. We hired one manager who didn't work out and then we hired another one who is an all-star.

Hey @Vincent Grigsby! 

Some trust laws very by state.

In Florida I deal with land trusts all the time. Usually the only extra paperwork is signing over the beneficial interest to the new owner.

However if you're on the buy-side of the transaction you shouldnt have to worry, the title company should handle all of that for you 👍🏼

@Josue Molinari thanks for the feedback! 

This was all cosmetic but a lot of it!

We do currently have a project going where we are looking to build 4-8 quadplexes! Very excited about that one!

Hey Leighton are you looking to lend your money for fix and flips or do them yourself?