All Forum Posts by: Luis Lopez

@Wayne Brooks I guess it depends on the relationship we have with the parties involved.  I can see how the contract for deed can make it easier on the seller (customer service) in the case that the buyer defaults.   But like you said, a buyer would prefer to take over the title.

One last note...correct me if I'm wrong but due to Dodd Frank, double closings should be avoided with both of these, they should be assigned, correct?

Thanks for confirming @Hattie Dizmond 

So as far as the actual deal goes, the wife REALLY wants out but the husband does not want to sell yet.  Their mortgage payment is $930 on a 2% fixed while the average rent in the area is $1300.  So this one is definitely going into my follow-up list.  Hopefully I'll come back to this thread with good news.  

Just read up on exactly what the difference is....it's all in the timing of title transfer.  Subject-To's transfer right away to the buyer while the contract for deed deal transfers title when the note is paid off.  

I'm still wondering if "subject-to" is used for both cases for simplicity reasons???

This brings up another question...is the "subject to" used interchangeably here in the forums with the contract for deed (aka agreement for sales or land contract) as a form of seller financing?  I understand there's a slight difference, not exactly sure yet what that is though.

Well as the rule of thumb goes, the idea is to sell the property to your buyer at 70% ARV less repairs estimate. So your purchase/offer price would have to be that price less your profit (wholesale fee).

So let's assume the ARV = 100,000, it needs $10,000 in repairs, and you want to make $10,000. The price to your buyer would be 100,000 x .70 = 70,000 - 10,000 = $60,000. Your offer to the seller would have to be (60K - 10K) = $50,000.

To the more experienced, please correct me if i'm wrong and if I'm missing anything.  Hope this helps.

Thank you all for the warm welcome.  @Account Closed , looks like we're neighbors.  I sent you a PM

Well apparently "farm" is referred to as "your target area".  So what I meant was strategically dropping business cards and/or flyers pretty much everywhere you go within that area.

I can't really say anything has worked for me because I'm just starting myself but since these are ideas I plan on implementing myself...just thought i'd shoot them your way as well... since you asked.  (BTW, being involved in the forums i would think is another form of marketing in itself)

Keep hustling and stay hungry!

Congrats on your 3 deals thus far. I'm looking forward to my first. Which technique(s) got you those 3? I'd push whatever has worked until it doesn't. Another avenue would be cold calling FSBO or even other wholesalers looking for buyers if you have a good list. Something else I haven't really seen in the forums much is leaving business cards or flyers in your "farm" - just learned that word today :)

Hi All. So while I wait for my first direct mail campaign to hit their recipients, I decided to get some "phone" practice in and call a few FSBO listings for potential leads and get the hang of speaking about properties over the phone.

So this one I contacted today is very motivated;  Her work commute is very far and the house is a lot bigger than what she needs and it's tough for her to maintain, so she wants out.  The problem is, she owes on her mortgage pretty much what the comps are coming in for.  She may even be a bit underwater.  

I'm a rookie wholesaler here in Miami, FL so the easier deals for me at this point are those with some equity (meat on the bones).  But before I move on to the next lead or pass these on, I'd like the input of those more experienced becasue if I can actaully help her somehow, someway, i think i'd be off to a good start both from a customer satisfaction standpoint as well as educational... Would seller financing be an option?  Thoughts?

I've been reading that the rule of thumb for a good deal to a cash buyer is 70% ARV. To the actual investors here in Miami, what are you all actually seeing in today's market? I've been seeing a bunch on Craigslist being offered by other wholesalers closer to the 80%.

Also, what website would you recommend for market analysis/research.  I'd like to get an idea where the hot rental areas are for example.