All Forum Posts by: Zach Shepard

@Mark Hu Is it necessary that you assume the loan? Assuming the loan means the bank (Wells Fargo) needs to qualify you for the loan. They may not, especially if the loan is not assumable or you just don't qualify. 

If you inherited the property, I assume that means you inherited the beneficial interest in the trust that holds the title to the property. To do a Subject To type deal this is the best possible situation. You don't even need to alert the bank about the inheritance. You simply continue to make the mortgage payments on the loan as tho nothing happened. The trust stays in place and payments are being made on the loan. Title never changes. 

So a couple things could happen: 1) you make payments, the bank is never aware of the death of the borrower and life is good, 2) you make the payments, the bank becomes aware of the death and the transfer of the beneficial interest in the trust from the deceased borrower to you, and they don't like it, so they call the loan due. You would need to either refi the property or sell it. Either way if they try to foreclose, the loan is in the deceased name, so it never hits your credit. And hopefully you have a lot of equity, which gives you options to sell or refi. 

Good luck!

@Mike Schorah 

I would say that the title problems are the main reason that they're investor deals. Retail buyers don't want to hassle with that kind of bs. They'll just move on to an easier deal. 

Secondly if you're an investor, a big part of creating a great deal is shaving all the hair off a deal, ie solving all those problems, title issues or otherwise. 

So look for deals w/ problems that most people don't want to mess with and you might just create some awesome profits!

Hey @Lewis Gichuhi

After doing deals for 10+ years, properties where its tough to find the owner/seller are usually the best b/c it deters most people who don't want to put in the work. What's the saying?? "There's gold in them there hills!"

Couple ideas...
1) Research the property and see if its gone thru the probate process. If it has, that's public info. You should be able to find out who the executor or administer of the estate is. It may be an attorney, or it may be a relative or a spouse. A relative would be your best bet to reach out to. Attorney's have their own methods and we specifically do not market to spouses, for many reasons. But relatives are where its at. They may just want to sell quickly and capture all that equity which someone else paid for ;)

2) Find out where the tax bill is sent to. If its the subject property, skip trace the name and address and see what pops up. Same thing for a different address. Then start making some calls.

3) Leave your info on the front door. Talk to the neighbors. Track down the mail person. Google the address for info. 

4) Run the PIN number for the address thru the local recorders office and take a look at all the recordings. They may have recorded a land trust/living trust etc a few years ago. And the recording should state who the Trustee is. Google them and call them!

Good luck on the hunt!

PS Love @Randall Alan comments lol

Shoot me a DM and i'll send you my attorney's info @Yocheved Beer

@Michael K. Subject To deals are most likely to work w/ motivated sellers. The loan type doesn't matter as much. Most lenders will say that they don't do them, but really that means that they don't know or don't have any experience w/ them. Their default reaction is "no, its not allowed". Just understand that it is possible, but be careful of the lender calling the loan due.

Regarding strategy, like @Jonathan Klemm said, Subject-To is just another tool in your toolbelt to help a seller out of a tough spot. The most important thing to a seller is trust, ie trusting you w/ their personal credit, trusting that you know how to execute, etc. 2nd most important thing is understanding the nuances of how to structure the deal. 3rd thing is to have a great attorney who knows how to bring it all together. An attorney is more important in Illinois than other states, b/c IL is special ;)

Hey @Michael Morrongiello, if you're looking in Chicago, check out the  the city's website, free of charge here: https://sbf.maps.arcgis.com/ap... 

But if you're in doing deals in Napa, I'd be hard pressed to say that there's any OZ's around you. Otherwise call the local building dept and they should be able to direct you to the best website.

Yeah, we've done a number of Subject To deals in Chicago @Jake Wosick. Closing on a condo deal Sub-2 in the next few weeks too. Shoot me a DM and I can help walk you thru it.

And the basic structure isn't different in IL @Don Konipol You just have to be mindful of deal killing attorneys who quash any type of seller financing. If the deal is "creative" and outside the traditional box of a real estate closing, they won't like it. Find an attorney who's a Deal Maker! Not a deal breaker... and you should be good!

@Joseph Tuczak The eviction process is never easy. We've had two evictions in the last 90 days, and the sheriff is taking about 6-8 weeks to come out once they've received the eviction order. Like @John Warren said, hopefully your attorney gave the sheriff your cell phone so you get a call the day before. Otherwise continue to call and email your attorney. I would have your trash-out guy and locksmith on standby at this point, so when you get the call, they're ready to rock. 

Hey @Josh Reighard, we've got buildings in Pilsen and Bridgeport. Definitely like to connect with you guys for the next event. I'll shoot you a DM w/ my contact info. Always looking to connect with good people and good operators.

I would just tear the building down. That'll get rid of the smell ;) @Brie Schmidt