All Forum Posts by: Kara Leboeuf

I agree with you completely on what you have said. We discussed the due on sale (with ourselves not the seller) and our exit strategies if it is called. But what doesn’t make sense to me is why people in all these other states are doing sub to deals all day every day? Why is NY the issue?
the sellers loan is held by a mortgage company that is not in NY, it was probably sold there, so maybe that is in our favor, or doesn’t matter?

Quote from @Jake Wiley:

I think the hesitancy you will find relates to the due on sale clause in loan agreements. Essentially if the seller sells the property, the loan is due per the note/mortgage, so it's somewhat difficult for an attorney to complete a contract that clearly conflicts with another legal agreement and creates a cloud on the title, especially an attorney representing the sellers.

The seller is the one taking the credit risk, but you would be put into a difficult scenario whereby if the note was called the property could be foreclosed on if you can't satisfy the note, and you might have to get the seller to come back in the picture to help clarify it all. On top of that, you'd have a second rent-to-own contract with a tenant that could also be in jeopardy if you can't get the title clean or the property is foreclosed on.

This all sounds bleak, but I am all for being creative to make the deals happen. I just wanted to highlight what you are up against/risk so you know where the pushback is coming from and what you might have to accept in terms of documentation of the sale.

Fingers crossed someone will pipe up with an investor-friendly real estate closing attorney that can help you get clear on the best path forward and options. In the meantime, I'd also suggest reaching out to the local REIA and asking for attorney recommendations.

Good luck and keep us posted on how this turns out.

0 Votes

Upstate New York, New York

Hi everyone!
We have a very motivated seller who reached out to us. They just purchased their home 6 months ago for 275. The currently owe 268. They want to sell their home because they lost their jobs are are moving out of state. If they were to list on the market they would have to go to closing with cash. We offered them to take payment subject to their existing loan. They are all in and ready to move forward. Once we take over payments we plan to do a rent to own contract with a tenant where they buy the property in 3 years. I hear a lot of hesitancy and push back on subject to deals from sellers attornies in NYS. Our plan is to have our attorney write up the contract and then have the seller use our attorney to close as well. Does anyone in NY have experience on successful subject to deals or any feed back?

Thank you!

0 Votes

Upstate New York, New York

Quote from @Amber Krueger:

That's amazing! Where did you post the ad?

Posted on Craigslist, and the owner called us.

1 Vote

Upstate New York, New York

Quote from @Jay Hinrichs:

nice work I have been using zero % financing since the mid 80s when rates got to 18% guess how much property I sold LOL like A LOT.

nice work.. I still to this day if I have something I dont want to fool with will do the exact same thing .. although I usually want at least 2 to 5k down but will do the Zero % Zero % seller carry back in my experience I have never had one default no matter how bad the tenant pool was in the area etc.

Wow thats great! We were pretty pumped that we negotiated so well. But he didnt have great options, he couldnt sell on the market with a tenant in there whose not paying, and he didnt want to go through an eviction in NY.. We originally asked for 30 years but due to his age he wanted less, so we settled at 15. Well take a house for free any day!

0 Votes

Upstate New York, New York

Quote from @Joshua Janus:

This deal is crazy! So you are under contract? Close this before the seller changes their mind haha.

HAHA yes we are officially under contract!!! We have been talking about it with him for over a month and just officially went under contract when I posted this. As soon as title is back we will close!

0 Votes

Upstate New York, New York

Quote from @Ben Lin:

Quote from @Kara Leboeuf:

Hey Everyone,
Just want to share an awesome deal we have under contract.
Our goal this year is to purchase a house a month, or more. And we have been focusing more on the creative financing side. We posted an ad and found a landlord off market who was looking to get rid of a property due to a tenant not paying because of covid. The property is in decent shape but he wanted to wash his hands of it and not have to go through an eviction.
We negotiated a purchase price of 0% down, $99,000 for 15 years at 0 % interest!!!
He really just wants a reliable check written to him each month. The market rent for this property is 1300/month.
As pace morby says, I can give you the price you want, if you can give me the terms I need. And we did it!
Seller financing for the win!

Congrats that sounds like an awesome deal. Pace is da man! Find one for me LOL.

Pace is the man for sure!! Im so happy we found him and have changed our mind set. Our goal this year was to BRRR one house a month, but with seller financing and sub to, we will be able to do so many more deals!

0 Votes

Upstate New York, New York

14 Votes

Upstate New York, New York

Please join us for our March REI Meet up.
As always, the first thursday of every month from 7-9.
We look forward to seeing everyone there!

For further discussion, engagement, feel free to follow us on facebook @ADKREI
Cheers,
Kara

0 Votes

Upstate New York, New York

Hello Upstate NY investors!

Please join us for our next meet up March 3d 2022 at Common Roots Brewing in South Glens Falls.
Last night we discussed ways to find your next deal. Next month we will be deep diving into analyzing your deal.
Our meet ups will continue to be the first thursday of every month from 7-9 pm.
See you there!

0 Votes

Sounds great Kyle. See you there!

0 Votes

All Forum Posts by: Kara Leboeuf

Kara Leboeuf has started 32 posts and replied 119 times.

Post: Has anyone closed a subject to deal in ny?

Post: Has anyone closed a subject to deal in ny?

Post: seller financing with 0% down and 0% interest

Post: seller financing with 0% down and 0% interest

Post: seller financing with 0% down and 0% interest

Post: seller financing with 0% down and 0% interest

Post: seller financing with 0% down and 0% interest

Post: Upstate NY South Glens Falls REI Meet Up

Post: South Glens Falls, NY REI Meet Up

Post: Queensbury REI Meet Up

Kara Leboeuf has started 32 posts and replied 119 times.

Biggerpockets Logo Post: Has anyone closed a subject to deal in ny?

Biggerpockets Logo Post: Has anyone closed a subject to deal in ny?

Biggerpockets Logo Post: seller financing with 0% down and 0% interest

Biggerpockets Logo Post: seller financing with 0% down and 0% interest

Biggerpockets Logo Post: seller financing with 0% down and 0% interest

Biggerpockets Logo Post: seller financing with 0% down and 0% interest

Biggerpockets Logo Post: seller financing with 0% down and 0% interest

Biggerpockets Logo Post: Upstate NY South Glens Falls REI Meet Up

Biggerpockets Logo Post: South Glens Falls, NY REI Meet Up

Biggerpockets Logo Post: Queensbury REI Meet Up

Post: Has anyone closed a subject to deal in ny?

Post: Has anyone closed a subject to deal in ny?

Post: seller financing with 0% down and 0% interest

Post: seller financing with 0% down and 0% interest

Post: seller financing with 0% down and 0% interest

Post: seller financing with 0% down and 0% interest

Post: seller financing with 0% down and 0% interest

Post: Upstate NY South Glens Falls REI Meet Up

Post: South Glens Falls, NY REI Meet Up

Post: Queensbury REI Meet Up