All Forum Posts by: Account Closed

@Mayda Searfoss One of the investors I know buys in St Louis and in Indiana. He says he pays $40,000 to $50,000 cash per house. I asked him how he does it. He travels a lot! With the new "touchy feely" TSA, that doesn't sound appealing to me. Why not Casa Grande or Yuma or Flagstaff or Kingman? Closer by and easier to manage.

Would you mind explaining this part of your post a bit more?

You can buy "Subject To", rehab, Sell, rinse, repeat, or buy "Subject To", Rent, rinse, repeat.

I'd love to understand the strategy but I'm not following it as is.  Thank you!

Hi @Brian Garrett: In response to your question:

1)  Sure. Last month I bought a 4 bed 2 bath for $100 down "Subject To" the existing loan. It was NOT a foreclosure, all payments were current. Basically, I took over the loan and payments. I sold it on a Wrap for $25,000 down and a higher monthly payment giving me a positive cash flow of $750 a month in addition to the $25,000 I received. (Not including the equity I'll get at payoff). I spent $500 and 30 days getting the placed cleaned up while I looked for a buyer. I made one month's mortgage payment. In this  case I actually SOLD the property so I don't have a "Tenant", I have a "Tenant Buyer". 

I did another, better one, simultaneously with one of my partners that I am training. We will net about $40,000 after expenses on an $8,000 investment. (Not including the equity I'll get at payoff)

2) A couple of months ago I got a Seller to Lease Option to me a totally paid off property for $100 down and payments of $850 a month. I did a Sandwich Lease Option to my Tenant who has the Option to buy, where I got $10,000 down and $1250 a month for positive cash flow of $450 a month. (Not including the equity I'll get at payoff). This is more of a rental (Rent to Own / Lease Option).

Either of these two can be repeated over and over. I've been doing Subject To's for twenty years. I've also done them as flips, but these are faster, and more profitable, less risky and less hassle.

Since BP doesn't allow me to put my email address here you'd need to PM me for more info, which I'd be happy to give. Most people don't want to wade through details as they read the thread.

Ken

 Do what I do and use other people's money. 

You can buy "Subject To", rehab, Sell, rinse, repeat, or buy "Subject To", Rent, rinse, repeat.

Or, find a doctor, dentist or businessman with lots of cash to invest and pay them an interest rate you are both happy with. No bank, no credit needed. It has worked in all markets for me for the last 20 years. Before that, I was a loan officer, so yes, I can qualify for bank loans, but why do that when my way is so much more profitable? Ken

Still, it's their house until it sells. They may be stupid, they may be stubborn, they may be opportunistic, but then you are being opportunistic too. That is why you are doing the deal. They have a right to demand what they want. You have a right to meet their demands or walk away. What are you going to do when they are uncooperative at a crucial moment or sue you after the fact when they tell the Attorney General's Office that you coerced them? Do a google search for "foreclosure" and "lawsuits". Under the SAFE ACT, you may be facing an uphill battle.

 @Marcia Maynard - I'm surprised you didn't know about this: 

"By Daniel Beekman Seattle Times staff reporter

"Seattle is apparently breaking new ground by requiring landlords in the city to rent their housing units on a first-come, first-served basis."

"The Seattle Office of Civil Rights (SOCR) will begin work on how to implement and enforce it"

"Prospective renters will also have the option to sue a landlord"

Seattle is apparently breaking new ground by requiring landlords in the city to rent their housing units on a first-come, first-served basis.

Usually when the SOCR gets involved, it gets very very expensive to the Landlord to try and keep their property. Seems like the balance is in favor of the Tenant. That is PRIVATE property the City is dictating that has to go to someone the Landlord may not want. Since the prospective tenants can sue, and there are plenty of lawyers waiting to take the cases, this should be fun for the Landlords right?

As goes Seattle, so goes Washington. I stand by my original comments.

Ken

My partner in Austin & I just bought a 3 bed 3 bath for $100 down. We are taking over the mortgage of $185,000 with $8,000 to the seller for moving. (We are into it for $8,000 total Plus closing) There is no work to be done, it is a 4 year old house. We have it on the market for $239,900 30 days later with us doing the marketing. No real estate agent involved. Does that count as a flip? I don't know the ROI but I like the numbers.

Keep on buyin'

Ken

Hi Justin, you are unclear what you mean. 

Are you buying a house on a Lease Option? Are you selling a house on a Lease Option? 

Are you the owner who is looking for a lease agreement for a tenant?

I would start with either a local investor (there is a Real Estate group that meets in Round Rock) or talk to a real estate attorney. regards, Ken

Under the current environment, there is so much other stuff going on that I think Section 8 won't even be addressed for a few years, Could be wrong tho'. I'd have an alternative plan in place, but I don't think you'll need it right away. California would fight the changes. Ken

Hi Nam, some lease agreements allow new landlords to give "notice to move" when they buy a property or to raise rents. 

Do both. Give "notice to move" and raise rents. 

Read the leases. Since you choose to invest in the Socialist State of Washington, be prepared for other Landlord Tenant laws you may not like. But, read the leases, and the Landlord Tenant Acts for Washington and for Pierce Co. regards, Ken

I think I would start with a Title report from a Title company to see what is really going on. The daughter may or may not have Power of Attorney and the nursing home may or may not have a lien. And, then there are always those "other unpleasant liens" she didn't know about. Depending on how clean the Title report is, you make your move from there.