All Forum Posts by: Horace Hayes

My grandmother has a reverse mortgage on her property and wants to transfer ownership so I can purchase from mortgage company if anything was to ever happen to her.  Since she took out the loan the home has built quite a bit of equity.  We are trying to know what's the best purchase option in this scenario.  I am in her will but we are unsure if that holds priority for this type of loan.  Any recommendations for real estate attorneys in the Atlanta area would also be appreciated!

Thanks Matthew.  Would love to hear more abt it at your earliest!

Hello, my business partner and I are looking for a 100k sq ft warehouse space that allows semi truck access and docking.  Outside of real estate I run a trucking company and we have been fortunate to secure a contract to store and ship material for our primary customer, however finding a commercial space in the Raleigh/Fayetteville area has been difficult. 

Any help or advice is much appreciated!

Nice!  I found out they owed more than the initial agreed price after I got it under contract (my mistake) and the 37k payoff was more than I wanted to pay for it since reno costs may exceed the 40k. I like to go into deals with more meat on the bones these days.  Either way this tells me to reduce the risks, I should update the contract to reflect the new sales price and be added to the deed.  That gives me the power to handle everything else myself.  

Thanks @Andrew Kiel

I have my first Subject 2 Deal under contract and based on a few variables want to be sure this is something I should still take on.

1. Terms include being added as an authorized user on the account, however the current financing company (Shellpoint Mortgage Services) has been giving the owner a hassle with adding me. 

2. The Owner owes more than the agreed to purchase price so my plan is to renovate it and rent it out until the balance is down to the purchase price, which may take up to a year. Then refinance it and payout the owner.

3. Owner is sickly

The Deal:

Purchase Price: 25k

Renovation Needed: 40k

ARV: 120K

Owner Payoff Amount: 37k

If I sold it immediately after renovations, what happens to the difference of the purchase price to the payoff amount? And If I go with the initial plan to keep as a long term rental while still in the current owners name is this too risky?  Ive already started assuming the mortgage payments since Nov1 to keep the Owner on the hook but if too risky I may need to back out.  Any advice is appreciated!

thanks for the feedback!

@Sardar Mustafa Khan I definitely think buyer preferences are shifting, due to market uncertainty. Im a newer investor out of Atlanta and Im interested in having more meat on the bones when I make deals, those bigger discounts you mentioned. My typical strategy is BRRR so I can take advantage of getting a short term profit and long term income. With this strategy the key is to keep debt low and credit score high for this to continue working as banks are tightening their lending quals.

Hi Jonathan, 

Ive noticed a price cut trend in home prices over the last few weeks. Some folks may recommend jumping in now and other may try holding out a little longer to take advantage of a slower economy, but these are different circumstances that no one has ever experienced.  The outcome or duration of this thing is unknown here in the US, especially when things seem to be changing daily.  Rates seem to be going up as well.  I'm a newer investor, and personally during these times I just plan to be more strategic and make sure I have more meat on the bones (more equity) when I make purchases.  

@Ellis San Jose thanks!  Im using personal funds to renovate so bank financing won't be needed.  My main concern is after renovations are complete, since the owner is still "technically" liable for the existing debt and I am only added to the deed (basis of a Subject To deal) will I be able to complete a cash out refinance under these circumstances?  The only option I can think of is either selling the property or I purchase it myself for the initial agreed upon price, which seems contradicting to a Subject To deal.  

Im working on my first Subject 2 deal however my usual exit strategy is BRRR. The home requires heavy renovations even before making it livable so after renovating what are the options to refinance? Or is my only option flipping to sale?