All Forum Posts by: Joel Di Piazza

Hello all, 

I know in my own research that subject to is legit strategy. I have seen the pros and cons of it throughout my own research. I have found that there is always missing pieces to the puzzle and not everything is explained. And found out that to get those missing pieces you need to pay someone to provide those missing pieces weather it is a mentor or an attorney.

I have seen a few posts on the forum regarding this "Subject to" financing as well those who teach it. Everyone does a great job explaining what subject to is and how it works. And those who mentor the strategy and how great that is.  What I found most interesting is that those who spoke of the mentors only spoke that the money they paid was well worth it and even would have paid more. But when people who were curious or even skeptical, asked about deals they had done or money they had made on Subject to or from that mentorship. No responses were given just how great the mentorship was. RED FLAG in my mind.

I have been told that this strategy is legal, but it requires almost the perfect storm to work. And a lot is to be weighed on the sellers and buyers mind (legal issues). Now this isn't a bad thing but not great for beginners, I think. For an investing giant that can employ numerous mentees to do all the calling and researching for them it is a great thing. especially when your mentees are paying you to work for you. 

So, as I have been given input and advice by my BP connections (Thank You). I thought it would be a good idea to get a take from those who read this post what you think. Is this a tried and trusted strategy? Or is this just a way for the big-time investors to double dip, making money not only on the acquired real estate but having mentee's pay them to do all the dirty work for them?

***These are my thoughts, not yours.*** (Barrowed from DH)

What do you think?

Thank you all for the help and Insite. 

Good Day,

I have a plan to begin my investment adventure in Florida. Pasco, Pinellas, Hillsborough counties. By living in a multi-family 1 to 4 units. (1st choice) and renting the others. Or a single family with a ADU (2nd choice) and renting the ADU. So far, the banks or credit unions I have called are mostly small local ones.

When shopping around for a lender other than the above statement of what I am doing with the property. What questions should I be asking them? 

I do let them know that I qualify for a FHA loan, homestead and other local programs that I may qualify for. They just regurgitate these back.

I do ask if they or another loan officer are familiar working with real estate investors. They all say yes.

When I ask them what type of information, they would need regarding the property like RTOI, rents towards paying the mortgage, comps or equity. They seem to get lost or don't care.

What am I doing wrong? Please help.

Thank you,

@Alex Morales welcome to BP.

I would like to welcome you to BP.

Going to your original question of finding private money investors (PMI) to fund you 100%.

If those people were friends and or family that would do that then yes. 

If you want these PMI to be strangers, you have start making connections by meeting at a real estate meet up or people that you may chat with here on the forums. By doing those I would say you have maybe 1% or less chance. And that would mean you are a really good salesman.

I say it like that because you have no skin in the game. You have nothing to lose and all to gain. Assuming you found a perfect deal the numbers worked, and ROI was amazing. Any number of things could go wrong beyond your control. And you could walk away, and your PMI would lose. When you invest money in a person you need to know that the person you gave it to wants or needs the investment to go well just as much if not more than you do. For that to happen that means they need to have risk.

I would suggest listening to Real Estate Rookie podcast #210. In there they talk PMI and what they look for.

Good Luck

@Charlie MacPherson,

I know you had posted this a long time ago. What did you find out? I have a similar situation here in Florida.

What I found was 57 acres, 20 stalls, Main house and 2 guest houses (2000 sq ft 3/2 and a 1000 sq ft 1/1). 1/2 racetrack and indoor 40 x 60 track.

Any advice?

Hello all,

I am looking to purchase a single family home with an existing ADU (primary choice). Or purchase a multiplex and live in a unit. The purpose of the hack is to have the unit/units pay my mortgage. Or pay the majority of it.

Now i am need of help on the calculations. Obviously if i have a mortgage of 3k/month and 2 units i can charge 1k per unit. Making cost to me 1k/month. 

But…..

What calculator should I be using? Anything I should be adding or accounting for? Again rookie I will make mistakes. Does single family or ADU matter in the calculations? Is there any step by step videos? Any advice is greatly appreciated.

Thank you, 

Joel Di Piazza 

@Stephen Keighery, I will have to look into those REIAs. I am not familiar with any at this time. But I am doing my best to network with local real estate people here on BP. 

I will do what I can to find out the location of the Investors McDonald's. Any clues? Satellite images? :D... 

Hello Mandy, 

I am located in Clearwater as well. As I am also just started out in my real estate investment adventure. 

As I don't have any direct experience in the glamping industry, I do recall listening to the BP Real Estate Rookie Podcast episode #289 with Garrett Brown. In that episode he speaks on his experience on Glamping in Texas. I hope this helps you out. And if you don't mind I would like to add you as a contact. And maybe we will cross paths in the real estate world. 

Hello @Calvin Pringles, 

As I do agree with the points you have made. As I, myself have thought of doing a Accessory Dwelling Unit (ADU) instead of a duplex or triplex. Which as newbie to real estate investing and to Bigger Pockets just referred to them as In-Law suites. So thank you for teaching me something new today.

And as @Wale Lawal has mentioned that everyone will have their own "BUY BOX" (just learned what that was last week). And those ADU will have their own drawback.

Here are a few drawbacks I had thought of and if anyone would like to point out any additional drawbacks for ADU's please do.

Electric Meters: I doubt the even if the ADU is a separate structure they have a separate electric meter as they were mainly used for guests. What is the cost to have them installed?

Water Meters: Same as Electric Meters.

Permitting: Can ADU be used in such a matter? LTR, MTR, or STR?

Property: How much of the property is considered a common area? I know this is more preference by the owner. But what is best?

Calculations: As I again am very new to this. How would you even begin to make a calculation that this would be worth it for an investment? I recently saw a home with 2 ADU's one a 2/1 the other a 1/1. I have no idea how to do that math.

Those are but a few thoughts that I wanted to provide.

Good Luck, 

Joel Di Piazza The new Guy...

@Nicholas L.

I learned a long time ago that asking questions have a risk of not liking the answers.

I am currently still saving more money. I unfortunately have to be out of my current location by the end of the year. I do not have to be 100% financed. It is my nature to hope for the best but plan for the worst.