All Forum Posts by: Kim Oceguera

Originally posted by @Guy Gimenez:

@Jay Hinrichs

TREC forms don't contain binding arbitration...a problem I simply cannot understand and an issue that I address in my deals by adding a B/A agreement into an Exhibit which I incorporate into my contracts.  Only had to use B/A once and other party didn't even participate because she knew she had no legal grounds to push back...I prevailed in arbitration and got a judgement against the agent of which I've collected the majority. 

 Hi Guy,

I really appreciate all your insight on this thread! Can you please share the B/A you use? I'd much rather be safe than sorry if ever faced with such a scenario (hopefully not). The fact that you're also in TX is fantastic. Sometimes it's difficult finding information specific to the state you're doing business in. Thanks so much!

Hey @Bhanu P.! I'm sorry to hear about the troubles you had, but glad that it worked out. Are you able to share or send a copy of the Demand letter you used? I wanted to look into this but couldn't find sample letters online relating to this topic...just lots of discussions.

Thanks so much for starting this thread. Have a great day!

@John Thedford That was also my thinking; I'd be upside-down on this one. But I love the BP community input and support, so if there was a way to make this work I knew BP would show me something I wasn't seeing. Thanks for your advice. 

@Chris Seveney @Brian Gibbons 

You guys are awesome for such quick replies! Here goes the info:

ARV $138k

Repairs (per seller) $6-8k

Behind $9,707 in payments

Also $1k HOA fee to be paid

What is existing financing exactly

What is the pay off amount today $120,158

What is the PITI payment every month $1,574

How important is your credit rating to you, now that you're x months behind? Wants to avoid foreclosure but in the process of packing up. 

Do you understand how a foreclosure or short sale affects your credit rating? Yes

What is stopping you from making up the back payments? Wants to buy land to build new house. Has cash for land purchase. Will put a trailer on the land while house is being built.

Would you be willing to pay the shortfall between market rent and your PITI payment whatever that is [great question]

If I can solve this problem for you, can you sign agreement that would reinstate this loan over a period of time? In other words if I make up the back payments, can you sign agreement that will pay me back? [what would this agreement look like?]

**Thanks again for your input. Subject to is a new area and definitely interesting. Even so, if the deal's not there then I'll have to pass rather than put myself in a bad situation. 

-Kim

Hi all,

I've got a question on subject to deals. Have any of y'all been successful in a subject to where the owner is behind on payments and the mortgage payments are higher than what the market rental comps are? The seller is motivated and wants to avoid foreclosure, so I'm looking for a way to make this work if it's doable. 

Thanks for your input, BP community! 

-Kim

@Chris Uhler

Thanks for sharing your first-hand experience on the matter. The buyer definitely knows the EM is non-refundable. We make sure to include that notice in our marketing as well as in the contract. Truly appreciate the advice of a fellow investor in Texas. =)

Juan, please send a PM with your email and I'll send you details. Thanks!

The property is in the heart of Clear Lake and within minutes to the University of Houston - Clear Lake campus. The property has had many updates throughout. Double-paned windows w/ skylights. Plenty of storage with backyard shed. Great landscaping and decks along the back of the house. 

What really sets this property apart is the attached apartment with it's own entrance and features a full kitchen, w/d hook-ups, & full bathroom and separate water heater. Apartment can also be accessed from main house, but would be an easy conversion to two completely separate living quarters if desired.

Huge profit potential for flip or buy-and-hold cash-flow. Also makes sense for a house-hack, but please note:

Cash or hard money only and must close quickly.

Thanks, Guy Gimenez! The investor I mentioned in my post made it sound as if a MO was completely out of the question. But I'm with you on not delaying a motivated buyer who's ready to make a deal! Appreciate the heads-up on the protocol with a TREC form vs any other, too.

@Christopher Brainard. I'm not licensed but am trying to get all my ducks in a row for a deal. Thanks for your input. I've heard conflicting advice on the matter so I turned to BP for a weigh in. One investor said cashier check only (absolutely no money order or personal check) and if the buyer didn't have it, to postpone until they did. This same person suggested that when the funds are received that title can be verbally informed that I accepted x amount outside of closing. I should then ask that the amount be deducted from my assignment fee. Although I'm not licensed, I have heard that it is not legal/advised to commingle funds. So that advice was confusing. The other thing I didn't agree with is that if I'm forcing my potential buyer to produce a Cashier's check, I'm making them jump through an extra/unnecessary hoop. He was ready to lock in the deal at 7:45 pm on a Saturday...where should he go to get a cashier's check? Most likely, I'd be waiting until Monday morning for him to produce EM in that form, but that's plenty of time for him to walk away from this deal and find another who is not so strict on only accepting that type of payment. Hope this extra info helps in providing feedback.