All Forum Posts by: Ingryd Hernandez

Ok. I know that where I do business (mostly Arizona) we add additional clauses to our agreement for sale to help mitigate the seller being nefarious and providing enough public record to keep things on the up and up with title companies. But you are right, it comes with risks and all those risks are disclosed and I take those risks as an investor where I think it makes sense. It's also why I avoid buying on executory contracts unless the context of the deal merits it; for example - I don't buy on an executory contract if it's a preforeclosure situation where the seller has a lot of history of liens and judgements. I own one on an agreement for sale/executory contract, but that was to help a veteran family that was active military where the deal made sense and everyone had good credit worthiness. 

I am also not a coach if that's what you are implying. I joined SubTo mentorship with Pace Morby and have been very satisfied at how quickly I have been taught to buy, wholesale and flip homes using cash and creative methods. I leave the legal work to my lawyer, who is also a real estate investor. 

I appreciate you adding what you actually were trying to get at although you were using me as your target.

Quote from @Account Closed:

Quote from @Ingryd Hernandez:

Quote from @Account Closed:

Quote from @Ingryd Hernandez:

AZREIA is a great group to join for this purpose! I also do a meetup every Thursday but we are currently doing it virtually and we actually contact agents that have properties for sale so it's an 'active lead gen' type of meet up. 

What is your solution for when the Due on Sale is called?

First, I am close to the biggest subto investor buyers in the nation and out of 100's of mortgages, there are only a handful of mortgages that have gotten called due - mostly due to being super small local banks, so I try to avoid those. Getting the due on sale is definitely more of a boogeyman scenario than anything. Secondly, in the states I invest in, my plan would be to will move them to executory contracts or lease options to negate the due on sale if I have to but I'd rather control the deed. 

 

I am unclear on your question. Pace is telling you how to fix the problem using executory contract. The other way he has fixed it was by literally calling the bank and telling them he's the one paying for it and the bank was fine with that. There are a couple of other students  who got the due on sale clause called on them according to their private FB post but I don't know them. They said they fixed it using an agreement for sale/executory contract. The latest student I am aware of actually is just paying off the loan because he can and it's cheaper for him in the long run. 

First, I am close to the biggest subto investor buyers in the nation and out of 100's of mortgages, there are only a handful of mortgages that have gotten called due - mostly due to being super small local banks, so I try to avoid those. Getting the due on sale is definitely more of a boogeyman scenario than anything. Secondly, in the states I invest in, my plan would be to will move them to executory contracts or lease options to negate the due on sale if I have to but I'd rather control the deed. 

AZREIA is a great group to join for this purpose! I also do a meetup every Thursday but we are currently doing it virtually and we actually contact agents that have properties for sale so it's an 'active lead gen' type of meet up. 

 Hi @Craig Farah - I live in Chandler and am investor. I will message you. 

Hi @Shiloh Lundahl! It was great to meet you at Bigger Pockets conference! I am sending this message to a few folks I know. I'll keep you posted and good luck!

PITI/mortgage: $2,071.93 @ 4.75%, $125/mo HOA

$341K Purchase Price - $304K Loan balance after payments are caught up, $6500 arrears (01/01 payment included), $3500 to agent, $5K to seller at close, $15K seller will hold as silent note for his equity that matures on 12/31/2026, $7K assignment fee

Closing costs - $1500 Intentional TC & Legal, $3400 estimated closing costs, $3400 estimated HOA transfer

Clean title search has been completed - Total cash to close is $30,300

@Bradley Snyder here is some perspective which is less on what up and coming areas are in AZ but rather a hollistic point of view on the market.

At the lowest inventory point through the bubble before the great recession, we dipped to about 9K to 10K active single family homes - even that was considered a 'tight' market. Now, as one of the hottest population migration states in the USA, we've dipped to below 3,500 active single family homes on average for the last month.

Location could be good, bad or otherwise but the inventory is critically, historically low. If you don't have cash for $350K or less, be ready to go on a rough ride and hope your agent is building relationships to help you get an edge.

I am pulling properties that have been recently purchased by an LLC and seeing if I can get my buyers to see it before it's even complete. If we can get an offer in before it's officially back on mls, than maybe we have a shot while saving the flipper their holding fees and commission fees but still alllow my buyers to utilize their loan.

You want a creative agent because the typical 'wait to see what's on mls' isn't going to cut it for loan buyers.

@Prachi Metha I am getting a 3% on investment and could go lower if I'm wiling to pay points (which I'm not). No origination fee - John Morgan from Movement Mortgage.

@Nick Gerli as we learned in the recession, you can't go wrong in the areas closest to metro Phoenix so long as it's Class A and B areas. What helped build the 60% decline in home prices were the outskirt properties where the communities were more Class C or less communities. That's the real talk because those were the communities of people who were most taken advantage of (includes this Latina - I ended up short selling).

I think prices are where they should be from a demand perspective in the non-outskirts areas. Phoenix and surrounding cities have a lot to offer economically and people can live here and even work remotely without needing insane amounts of salaries. That's my 2 cents.