All Forum Posts by: Ken M.

It's actually a series of learning steps. Section 8 is the easy part.
I tutored for years, in the hood. I understand the culture.

Let's assume you have already done the following:
1. Have cash available 
2. Have been pre-qualified for financing
3. Know how to manage properties
4. Understand the tax implications of your decisions
5. Know what properties make money and which ones don't
6. Have a working knowledge of maintenance & repairs so a contractor won't rip you off
7. Understand landlord/tenant laws
8. Understand the eviction process
9. Know the difference between a mother trying to make ends meet and a baby momma.
10. Understand the difference between crack & fentanyl and how that affects rents & getting tenants
11. The difference between civil issues and criminal issues
12. Know how to keep books so all expenses get paid and if audited, you pass the audit

Now, since we assume you have those under control, 

 First you find a property that meets the basic requirements

Must be clean, safe, habitable, sanitary - there will be an inspection

It has to be ready for occupancy

You have to be responsive to maintenance issues

You can lose your section 8 approval so it must be taken seriously

You need a break down of who pays which utilities

Fill out a Request for Tenancy Approval form from HUD

Direct deposit information

and an inspection will be done on the following

• Lead-based paint hazards
• Kitchen and bathroom presence with proper appliances, fixtures, and sinks
• Ventilation
• Electricity and electrical hazards
• Conditions of the windows, walls, floors, and ceiling
• Smoke detectors
• Security (locks on doors and windows)
• Condition of the building’s foundation, stairs, rails, porches, roof, gutters, chimney, and other exterior surfaces
• Adequate and safe heating and cooling
• Water heater and water supply
• Plumbing and sewer connection
• Accessibility and fire exits
• Pest infestation
• Garbage and debris disposal
• Indoor air quality
• Elevators

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I am SURE I misunderstood you and you didn't admit to "fixing his credit." No, I'm sure you didn't, especially on a website monitored by the FBI, FTC and others. I'm SURE you mis-spoke and meant to say, he's a close friend that I am trying to help but it was not my intention to "fix his credit".

Debt Relief and Credit Repair Scams

"The FTC has brought scores of law enforcement actions against these bogus credit-related services, and the agency has partnered with the states to bring hundreds of additional lawsuits"

SOME CASES
https://www.ftc.gov/news-events/topics/consumer-finance/debt...

• Financial Education Services (August 5, 2024 )
• Panda Benefit Services, LLC., FTC v. (June 28, 2024 )
• Apex Processing Center (April 16, 2024 )
• Elegant Solutions, Inc. (Mission Hills Federal) (March 13, 2024 )
• Home Matters USA (February 16, 2024 )
• Lanier Law, LLC (January 17, 2024 )
• SL Finance (October 6, 2023 )
• American Financial Benefits Center, et al. (August 22, 2023 )
• ACRO Services (August 10, 2023 )
• Viceroy Media Solutions (July 18, 2023 )
• Arete Financial Group (June 14, 2023 )
• GDP Network LLC (YF Solution) (May 22, 2023 )
• BCO Consulting (May 8, 2023 )
• Stratics Networks (February 17, 2023 )
• Michael and Valerie Rando, et al., FTC v. (January 10, 2023 )
• Student Advocates Team, LLC, et al. (August 18, 2022 )
• GAFS Group, LLC, et al. (August 4, 2022 )
• ITMedia Solutions LLC (January 6, 2022 )
• Moneta Management Inc. (July 12, 2021 )
• SLAC, Inc. (June 25, 2021 )

The guy on Youtube that boasts about buying properties with no money out of his pocket and using other people's money from his "community" to pay for closing and carrying costs, said in a video in June that he had 10 Due on Sale called in AZ alone from Jan 2024 to May 2024. He didn't elaborate if there were others or which states. I don't really follow him, so I'm not sure how many have been called since or if he would actually state if he had. He uses poorly thought through methods, I've listened to his "methods",  Thus, he has the high amount of  Due On Sale called in a short period of time. 

We stay away from doing things like he does them.

I've only had 2 called in 30 years. The first, 16 or 17 years ago, was called 6 years after I bought the property. During that time the property had appreciated significantly and the seller was attempting a "shake down" to regain the property or get the appreciation, which he lost. His argument was that if he had not sold, he would have gotten that equity. Not a strong argument ;-) I still had to pay off the loan to cure the DOS. The second DOS was in 2020 when I bought enough properties using "subject to" that I couldn't keep up with rehabbing and some sat for a couple of months. One was taken over by some squatters causing problems for the neighbors and the police were contacted who contacted the lender. I paid off the loan to cure the DOS.

There are a couple of "subto's gone bad" over in the creative finance forum. 

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Hmmm, he is bragging all over Youtube how he is making $150,000 from one guy's equity, on one transaction, by bailing him out of foreclosure.

Who is he "helping"?

In fact, he says he transferred the title to himself, to "protect" his "investment". He is encouraging his tribe to send him leads so he can do more of these. He is polluting subto. No wonder he is disliked on Bigger Pockets.