All Forum Posts by: Jaime Farias

Jimmy passed away on the morning of May 19, 20202... just a few days short of his 82nd birthday. There really isn't much to creating owner financed notes. If you have read Henderson's material and mastered it, I am sure you can create your own notes already. What do you find challenging about it?

It's very simple..it's a contract with the price and it's being purchased on terms or subject-to. And that contract can be assigned. If you contract using a trust, you can be the trustee and instead of assigning the contract, you sell the beneficial interest in the trust. Then you can resign as trustee at closing and your successor steps in..it's standard that remainder agents and successors are used with trusts

So many assumptions..some are assuming that Blair wouldn't teach you to use disclosures/acknowledgments? some are assuming the home would be left uninsured. Some are confusing the US code with the Code of Federal Regulations. Some are saying it's "just sub2". There is also the doctrine of implied assumptions, the doctrine of laches, economic value of a mortgage, etc. Did you all know you sell the wrap and cash out the seller once some equity has been built in? Did you know you can borrow against the note via a collateral assignment? (if any equity--no one should ever crystal ball anything). What you are working with is wholesale terms, not wholesale prices. Sub2 can create blended IRR, can lead to you creating split wraps to create tradable 2nd's that you got free and you trade at face value. There are about 10 levels more to a sub2 and everyone is talking about step 1. One should always keep learning.

(4) the granting of a leasehold interest of three years or less not containing an option to purchase

-  There is no Option or purchase agreement in Bill's structure and the 3 year lease IS allowed by Garn-St. Germain



(8) a transfer into an inter vivos trust in which the borrower "is" and remains "a" beneficiary(implies that other beneficiaries are allowed) and which(the trust) does not relate to a transfer of rights of occupancy in the property; 

- The trust does NOT have any reference to transfer of occupancy rights and the owner remains settlor AND "a" beneficiary. The subsequent lease is what relates to occupancy rights and that IS allowed in Exemption #4

*Therefore, a borrower CAN lease your property and you CAN transfer beneficial rights as long the owner remains "A" beneficiary

It can be a simple 1-2 page Option contract. I have always been into Notes which is personal property. I first learned Notes when I was 15 yrs old and have over 30yrs experience. For real estate, I used the P and S agreements for the longest time, but I wanted an easier way for those I bought from. I had to basically start from the beginning again bc the attorney I used for the longest time retired and my original post was basically like starting over--creative financing is foreign to most now. It was common back in the day. The new attorneys and title companies don't seem to have any creativity.

I found that a long contract initially can scare a prospect. You can write anything into an Option agreement and assign it and have the end buyer execute on those terms. I have seen the argument for over 3 decades and you can just pick it up from the Tx Occupations code bc some think I made it up. It reads as follows in case some attorney says you're wrong...

Sec. 1101.0045. EQUITABLE INTERESTS IN REAL PROPERTY. (a) A person may acquire an option or an interest in a contract to purchase real property and then sell or offer to sell the option or assign or offer to assign the contract without holding a license

Although everyone is teaching to assign a purchase and sales agreement, one CAN use a simple Option contract and assign that Option for a fee. I have spoken to many attorneys and they say it can't be done..I walked away from them bc it was obvious they hadn't read the Texas property code. Sad that they advertise that they are Real Estate attorneys and don't even know the code

Randy Hughes has the best Land Trust education out there. Can't believe anyone is saying it's shady. Just the book itself is enough to teach you how to create them---it's literally a couple of lines to fill out. Not sure if those criticizing have even read the material. You can even do assignments with trusts by holding the equitable rights in a personal property trust. The problem is the student, not the teacher.

I have chatted with Blair a few times. I do not have his system, but just from looking at his deal structuring, you are talking about getting all of your $ back on 1 deal. Sure, it's not magic..but if you can get just 1 sub2 deal every 2-3 months and buy right, you're good to go. There is nothing crazy about buying a $200k home for $175k(no agents) and selling it for 225k on a lease option and collecting on the spread by Option consideration, cash flow(not needed), and cash out when the end buyer exercises his/her option. Screen the tenant buyer..get someone qualified even if it takes longer to sell. Advise them from Day 1 to contact a mortgage  broker and a credit enhancement program. This works great for sub2 and works extremely well for free and clear bc of the fast pay-down during the Option period..that spread grows and so does the amt you get at cash out. You sell it as as delayed cash out to the seller, nothing more. Sure one can do it on their own, but it seems that he offers systems and that just equals more deals. If the tenant buyer is qualified but doesnt have all the Option fee, create a promissory note. How you have cash flow. I know both creative financing and creative note structuring so some of the best educators out there(in my Opinion) are Blair Halver, Mitch Stephen, and Grant Kemp. 

 I was coming from the notes space where almost all transactions begin with an Option. TX state statute recognizes Options, but seems most title companies and attnys are ignorant of the law, sad to say. One of the things many say is that you must intend to perform on a purchase agreement or it could be fraud which is BS.(again, state statutes says you can enter into an option "or" purchase agreement and then assign your interest).  With an option, no one can pt the finger and say you intended to purchase bc it's just that, an "option"

 I know his content and it is some of the best if not the best currently out there. For defaulted, you either foreclose or modify so it should be a win either way. If you modify, split the note into a 1st and a 2nd and sell the first at a yield that still makes you a profit and you keep the 2nd as a stacked note to begin when the first pays off.  Make sure to experiment with the yields and spreads of the first to determine now many compounding periods the 1st would have. You will find that almost all note educators just teach the students to become bird dogs for them or to turn around and sell them their own notes. Tom teaches enough information to where you can do it on your own.