All Forum Posts by: Jonathan Rexford

Friends and Family. Look at your phones contact manager and ask yourself.  How many people know that I am buying and selling houses?  If NONE.  Start there.

@Dante We close all the deals at a title company, that is owned by the attorney. My attorney is just wanting me to take it straight into the Land trust that he creates for my purposes instead of doing it for the seller. We have a friendly argument every closing. He is right and so am I. You just have to get comfortable with your own paperwork and the way you operate. This is why internet/GURU paperwork is dangerous using it without having your own legal council looking it over and changing it to meet your needs.

@Luke Ward I wish that I did type it this morning for you all. It was a cut and paste that I use with other people. Like I said, their are several ways to take these down. Explore what makes you comfortable.

Here is a little checklist that I did put together for what I use. Their are a number of ways to take these down. I am just giving you my way. I have been using it this way since 2001.

JR’S KEYS TO THE KINGDOM

BUYING HOMES “SUBJECT TOO”

1. Sign A Contract With The Seller Subject Too The Existing Mortgages.
2. Collect payment coupon and copy of mortgage and note if the seller has it. If seller doesn’t have a copy of it then request a copy of the note from lender.
3. Have The Seller Sign The Seller Property Disclosure Statement.
4. Have The Seller Sign The Seller’s Affidavit. (Same Name Affidavit) If They Use Initials For There Name.
5. Have Seller Sign A Power Of Attorney And Have Your Trustee “Trustee Authorization” Regarding Insurance And Taxes.
6. Seller Then Signs Seller Mortgage Disclosure Statement (Due On Sale Disclosure Notice).
7. Seller Signs Letter Appointing Management.
8. Seller Signs Management Contract. (Just Keep This In The File)
9. Seller Then Signs Letter To Lender “Notification Of Establishment Of Trust” Hold This Letter In The File.
10. Seller cancel insurance policy and establish a new policy as a landlord policy naming the trust, trustee and seller ATIMA
11. Have Seller Sign The “Change Of Address” Form From The Seller’s Mortgage Company Statement.
12. Now The Seller Creates The Land Trust, Which Will Own The Property (through attorney)
13. Seller Signs Appointment Of Trustee. (You Or Your Appointee)
14. Seller Signs Appointment Of Successor Trustee. (You Or Your Appointee)
15. Seller Signs “Declaration Of Trust And Land Trust Agreement Naming Seller As Beneficiary.
16. Have The Seller Sign The “Standard Warranty Deed” Before A Notary.
17. Seller Signs “Assignment Of Beneficial Interest And Quit Claim Of Land Trust” Assigning Their Beneficial Interest In The Trust To A Personal Property Trust You Create For This Purpose Or Any Other Entity That You Choose To.
18. Seller Sign The Authorization to Release and The “Estoppel Letter” This Is To Be Sent To The Mortgage Companies To Verify All Balances.
19. Before You Invest Any Money Paying A Seller Or Bringing A Loan Current, Always Get A Title Search From An Insured Title Researcher. Verify That The Sellers Are The Proper Parties And That No Undisclosed Liens Exist.
20. Record The “Standard Warranty Deed” Along With The “Affidavit Of Land Trust” As Soon As Possible.

So I am assuming that everyone is just using handwriten signs for SELLING. Not BUYING.

I hire my signs out. I run an ad on craigslist and have them call a 800#. If they like what they here I tell them to go to the ad and reply back with there contact information. We are paying $1.40 per sign. Last ad I ran I had 53 calls and 42 emails off craigslist of people wanting to do it.

I for one use handwritten for SELLING only. I never use it for BUYING. For those using it for BUYING do you see a different results with Preprint than handwritten? What is your message with BUYING?

Gabriel,

1.) How do you approach a seller about subject-to financing?

Answer:
Subject to is not about the approach as it is a technique. If you determine that this is a deal, the easiest way to "approach the seller" is to show them actually what it will cost to sell their home. Use the current market. Don't get in all the DUE ON SALE stuff when explaining it to them. Just show them that you can buy their home this way and relieve them of the debt for making the monthly payments.

2.) How often do lenders call the loans if it has a "due on sale" provision? Has anyone here ever had that happen in a subject-to deal?

Answer: Super rare doe they call the loan due. I have only met a couple people that it has happen to and one of them had it happen to them because he did not up hold his end of the deal. Meaning that he did not make payments. They asked for the money that he did not have. Seller did not have it and the home went into foreclosure and the seller got axed.

Doing a sub2 deal is like going on a 1st date. It is time to wine and dine them. You never opened the door to your 1st date and ask for a kiss.

In the state of Florida a Mortgage Broker can collect a fee for working the short sale NEG. The real estate agent cannot get an extra fee on top of the commission.

Also in the state of Florida there are some big changes with licensed people that are licensed as Mortgage Brokers.

I use bandit signs all the time as an investor to buy and sell houses. In my state I have to say that I am a Real Estate Agent with the state of Florida. Well put that on the sign? NOPE. State told me that I had to put FREC REG on the sign. So I did.

FREC is Florida Real Estate Commission and REG is Registered.

I get more buyers and sellers ask me what is that FREC REG about. We laugh and I say that I have to WARN them that I am a Real Estate Agent that wants to buy their home.

Not at all. First place in some states it is illegal to take up front money. In the State of Florida you must be a license Mortgage Broker to get paid for working a short sale deal. The up front fee must be part of services rendered.

Real Estate agents are not allowed to charge a fee for working short sales.

Attorney's can charge as their capacity as acting as a legal representative for the client.

Now this is just stuff that I have read for the state of florida. But I still don't think it is right to take money from a seller for a short sale.

Part of working a short sale with a seller is to be sure everyone is on the same team. If this person that charges a fee, must not be screeniing well. Sure some do fall through the cracks. I walkaway from more short sales than I accept. But this is a numbers game.