All Forum Posts by: Jared Kluver

I will attest that I have used Cameron's system for over 3 years.  While my business grew and changed needs away from some of the product offerings, the No-Fee Funding service has been a staple product that I have continued to keep and use.  Julia and the team has come through without fail every time I've used the service paid for.  I can personally say he is far from the con artist you are claiming.

My concern is not at the surface of the bill that they are focused on - selling the rights to a contract via equitable interest.  My concern is the slippery slope this could lead down to include investors of all calibers including rehabbers.  Complete hypotheticals but could happen: not being able to resell with a period of time, having to disclose all profits of sale, having AREC approve the resale of property, forcing the use of a realtor to sell property, and the list could go on. 

I've been on the other side as a rehab seller where a buyer ties up my property for WEEKS only to back out (real examples here) because their grandma doesn't like the location of the house, the house turned out to be too big or small for them, they didn't like the color of the flooring, and other back-outs that could have been determined before tying the house up under contract. The state Realtor group has made it public acceptance and public expectation to do away with earnest money to the seller (no EMD). And this does the very thing that the Commission is complaining about - it takes away the seller's opportunity to sell to a buyer who was truly interested in the property, while the property got tied up, went pending, forcing the buyer on to the next house. The very reason they are going against wholesalers (and that @Jay Hinrichs points out) is the hypocrisy of the Arkansas real estate community at large.  If we are going to reform the way a purchase and sale of real estate happens in Arkansas, let's redo it completely instead of segmenting one area of the purchasing market.

Thank you all for the comments. Jon, you mentioned it does get sticky and can put you in some bad waters to be in the middle.. I understand and would like to keep to wholesaling for my first couple of deals. I know too that many of the folks calling that don't have equity to make the deal feels like I'm throwing away an opportunity if I just chalk them up and pass. I'd like to have another way to make some funds and still keep everything as clean as possible.. if this makes sense.

As Steve said, I definitely want to make sure there are no encumberances on the property except for the mortgage. This makes sense why I would want to use a title company and get title insurance. I havent been able to locate a title company in my local area that feels comfortable doing a sub-to, so far with each of them saying they would need a letter of authorization from the mortgage company to ok it. This makes it seem like we're waving it in the mortgage company's face and challenging them to call the DOS clause. Not something I'd like to do if avoidable. So for now, I'll keep calling the title companies in my area in an attempt to find an escrow officer that has done a sub-to or is at least comfortable doing one without contacting the mortgage company.

Thanks,
Jared

I may have really been making too much of this.. I saw this on another post.

And how complicated is it to transfer the deed?

Fill out the deed, have the owner sign it and have it notorized, take it to
the recorder's office and pay a fee. That's about it.

I would think I'd want to get title company to run a check to make sure the title is clean. Then it would be simply drafting up a general warranty deed and taking it to the courthouse? If anybody has any links to the steps of doing this that would clear up my confusion, I'd greatly appreciate it.

Thanks,
Jared

Thanks for the responses. The "agreement for sale" was the term I picked up off the Flip2Freedom Academy. It sounded like a land contract, but maybe I made an incorrect assumption. Sean Terry (F2F) says he prefers Agreement for Sale because it doesnt require a full foreclosure only eviction if they aren't paying, title doesn't transfer (only fee title), etc. This sounded like a Land Contract to me?

You are correct about the Subject-To and I may be making it too overly complex. My understanding of the difference of sub-to and land contract sub-to title transfers but if the buyer is in default, a foreclosure is necessary.

The reason for the preferred method (im leaving a lot of training out of this discussion like full disclosure, etc) is if the C buyer stops paying, I (B) wouldnt getting a call from Seller (A) saying "what's the deal?" and having to be concerned with long drawn out foreclosure.

My real question is with regards to sub-to, do I just need to find a title company that is comfortable doing it without trying to tell me we have to contact the mortgage company and get a letter of consent? The answer sounds like keep calling.. :)

The reason for the questions is to have another tool in the belt when there isnt much equity, a good mortgage in place, and finding somebody with cash but no credit that wants to step in (creating a exact wrap with me taking a piece of the down payment from the C buyer for my work of putting the deal together).

Thanks again for bearing with the newbie :)
Jared

Hello Community Members,

I understand the basics of a Subject-To deal (taking over the existing mortgage in place). I picked up some learning materials and it said one of the first things to do in real estate investing is to build your power team, including finding the right Title Company. The training has some general questions to ask, including if they have ever close an "agreement for sale" (land contract) or subject-to. Out of the 4 local companies I've called, they've all said they havent done it but can if they have an approval letter from the mortgage company. I'm baffled why the mortgage company has to be involved in the deal, even if there is a due-on-sale clause. The title company is insuring title, not the mortgage on the property?

Is this a normal practice (contacting the mortgage company to ask for a written letter that they approve) in doing a subject-to deal or am I missing something?

Thanks,
Jared

Hi,

I purchased a duplex awhile back prior to creating my LLC and would like to transfer title of to it. I originally set up a DBA along with a bank account under that name and have been making payments out of that account for the last 5 years.

Understanding there is the threat that the mortgage company could call the note (due on sale), how do I transfer ownership of the property to my company? Do I have to use a title company to do this?

Thanks,
Jared