All Forum Posts by: Jess Hewitt

Todd does close owner finance and subject to transactions.

Yes that's a nice one to check out.  

I would use an attorney to close if that is an option in your state, closing costs are minimal as no appraisals and other fees are required by a lender, I would take it over lease it and revisit in a year, I would scrub the repairs to what ever is needed to get it rented and then perform the other maintenance and upgrades over time.  Make money.  I would do this deal in a heartbeat.  I hire property managers to collect rent and remit to the mortgage company - I get them the authorization to speak with the mortgage company, as long as the lender gets their monthly check they are happy.  I keep my subject to's as long as I can, I do put a sale price on them and if someone hits my number then I am out and on to the next deal.  I list my subject to mortgages on my balance sheet but they are not reported to any credit bureaus.

I love cars and I would like to own an electric car or maybe diesel-electric.  I changed my mind when I asked my brother in-law about the 4" thick binder in his truck.  He said he had to study it as they carry it on the fire truck and would have to refer to it when using the jaws of life on electric cars.  I asked, " why is it so thick?"  he said, "It has diagrams for every electric car sold in America.  We have to pull the diagrams for the car to make sure we don't cut into any electrical lines and shock ourselves."

Most of us have been in this position.  You have a contract and that's great.  They have defaulted and you probably don't want them back on the job site.  If teh contractor is experienced then he know what you can do to him if you have experience.

I have experience and this is what I would do knowing only the facts related here.  I would compare what has been paid to what has been done, then get 2-3 estimates on completing your contract.  Call AIG and tell them that you have paid 75% of contract amount and only XX% of the work is complete.  Tell them they have x days to perform under the contract (this called a notice of default and time to cure default).  If they don't then you will hire another team and have them complete the work and then charge AIG  for the difference (this is your remedy - you may have to sue in JP Court - but that's another story).  You will need an attorney to protect you as most contractors will try to file a mechanics lien so you must serve them with proper notice - let the attorney handle it from there.  Who knows you might meet your new best contractor.

@Ned Carey is correct, set up your keywords alerts and see what is being discussed.

I like the RICH CLUB; member-owned club, non-profit; lot's of local investors show up along with the contractors, lenders, title co's, attorneys, etc - everyone you need in your brain trust.

I am an investor who buys subject to properties in Houston.

If I were you and I worked at Starbucks I would network with my customers.  I have found that I get my very best deals just by just telling people what I am trying to accomplish.  At Starbucks, you must see at least a hundred people every day.  You could ask each one if they know of any good deals on a pre-owned house.  That's free!  Spend your money on some simple business cards* with your contact information.  If they have any deals then hand them your card and ask them to send you the information or ask them to write it on the back of your card with their information (you will use this card as your reference with the homeowner).  If they are looking for a home, again ask them to write on the back of the card or they can contact you after hours (you are adding retail buyers to your list - which are gold, but their interest decays quickly).Then remember to answer your phone - don't let it go to voicemail.   Then use your training and buyer's list to put together deals.  Use the $150 on fuel to get out and see these houses and meet your investors.  PM me and I will join your buyer's list.

Good Luck and Keep Us Posted!

* Cards should be simple with your name, phone, fax, email, website if you have one, company name if you have one, no need for any fancy logos or slogans - you can use these cards for anything.  I have one that I have used for years that is "personalized" with both my wife's and  my name and our contact information - we use them everywhere for anything. No one else has a contact card for husband and wife and it makes an impression that I am giving them our personal contact information.  Of course the address is our PostNet, the phone number are Google and cell and the fax is my eFax, I do give them my personal email address.

I remember when I went to UH to get my bachelors degree.  I bought a brand new 12x60 mobile home and found a spot for $35/month at Park Place and I-45.  I paid monthly notes of $123 for the trailer.  Before I graduated the City of Houston changed the rules for mobile home parks but grandfathered my home.  When I graduated i wanted to sell the trailer and found there were many willing buyers wanting a grandfathered home.  I sold it on an installment note for nearly twice what I paid for it.  The young couple paid regularly and then paid off the loan after two years.  I remember they brought me cash - more cash than I had ever seen.  Good luck with your career.