All Forum Posts by: James Andrews

Thank you guys, I really appreciate your input. 

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I had gone to meet with a real estate agent this morning who is representing the owner of the property I am interested in purchasing Subject To. The house was purchased for $115k in 2013, but the fair market value today is 80k with a balance of 95k remaining on the mortgage. I had spoken briefly with the agent before going to see the property, and he informed me that the owner owes the mortgage company approx. 5k in mortgage payments. I asked the agent if the owner owes the mortgage company 5k in mortgage payments then why should I give her 25k to do this deal? He then explained to me that the 25k is so that the owner can get caught up on the mortgage payments, closing costs etc…Now I am a newbie in the game of real estate investing, but for some reason it just didn’t sound right to my giving the owner 25k to cure the loan on my behalf then pay the mortgage company each month after I receive the deed. After asking the agent if he could email me a copy of the Authorization Release Form which he stated he submitted before I called on the ad, I felt that he became a little uncomfortable. He asked if I could stand near by while he call the mortgage company to answer any questions I may have regarding the mortgage. As far as I know, it could be a business acquaintance acting as a representative of the mortgage company.

(All replies would me very much appreciated.)

Below is how the property is listed:

FOR SALE 25K

Property is being offered SUBJECT TO EXISTING MORTGAGE. Balance is about 95,000 dollars, monthly payment is 755 dollars including principal, interest, taxes and insurance. Fourth bedroom is an extra first floor room between the living room and dining room. First floor has an enclosed porch, living room, fourth bedroom, dining room, eat-in kitchen, and powder room. Second floor has three bedrooms and a full bath. Basement has a laundry room. Property was newly renovated about three years ago and has central air conditioning. Fenced rear yard. This is a great deal for an investor. Section 8 (HUD) pays more than $1500/month rental!

Thank you, Kenneth.👍🏽

Thank you, Federico.👍🏽

I am a newbie at investing in real estate. I came across a property that is being offered as SUBJECT TO EXISTING MORTGAGE. Should I pursue it or not?

I would like to thank all of you for your sound advice. It is greatly appreciated.

Unfortunately, Mike I do not know how evaluate property. Is there any software, books or other materials which I can purchase to learn how to evaluate property?

Hello, all

Let me begin by saying that I am a newbie at investing in real estate. I have been searching my local area and happen to come across a 5 unit apartment building, which I would love to acquire to start my portfolio. With very little capital, I am thinking about contacting a private money lender. Should this be my first step in trying to purchase this apartment building? If not, why?

Thank you for your input, Mindy. It is very much appreciated. I decided to back out of the deal altogether. I just didn't feel comfortable with this seller. I am now looking for an experienced investor to partner with in the area who knows how to flip property. Yes, I am a newbie and need all the experience I can get.

Thank you very much, Kenneth

I will definitely keep that in mind.