All Forum Posts by: Marco Bario

I've spent several years developing skills and tools to be successful in a very niche space.

I usually work with mom-and-pop sellers who have originated just one seller carry in their lifetime and, when they connect with me, have never sold a note. 

Online platforms aren't a good fit for them.

I had a small monthly payment I was making, and I "hired" this note to make it for me. 

When I buy stuff or services at retail but buy assets to pay for them at a discount, it's like buying those assets and services on sale.

@Chris Seveney

"After around 2 years of payments we sold the loan and went from a loss to a very nice gain."

I know this one... and it's still paying every month on the first of the month. 

A simple way is to purchase an option on the property. The strike price can be set to any amount the parties agree to. You're on title, your option can be sold if you wish, and you can give whoever is on title now the option to repurchase your option. In doing so, assuming equity remains or has increased, you would profit.

@Varun Hegde - This is a good topic.

Often a title policy is issued to "XYZ Entity or Individual(s) and/or it's assigns" – however unless the title company handling my closing can perform a date down from when the existing title policy is ordered and issue an update in my name, I purchase a new policy at closing and factor the cost into my offer price. 

It differs between note buyers, but I always close through title and always make sure there's a lenders (Deed of Trust/Mortgage) or owners (Contract) policy in my name. I ask title to provide any documents that will be recorded and I won't authorize release of funds until I have proof of recording. The questions you raise would be addressed by closing through title and obtaining title coverage.

Subject to deals are not for wholesaling. Doing so places all involved parties at risk, and I fear will attract the attention of legislators thanks to those who do things carelessly.

Instead, stay in the deal by closing on the purchase and selling with a wrap. But intend to keep your word to the seller by making their payments at all costs or selling the wrap for a high enough price to pay off the underlying. 

Not per se if purchasing existing paper, but the subsequent noteholder may face issues if requirements weren't met at origination. Contract for Deed origination is also subject to Dodd-Frank regulation. 

The first payment can be due whenever both parties agree, and payments can fall on any agreed day. 

For instance, because you're closing on the 7th, all payments could be due on the 7th day of the month.

@Jacob Stevenson

Who knows what the world will look like in five years? The performance of your particular asset... real estate markets... lending markets... interest rates... general economy... 

If you can negotiate a 10-year balloon, you're more likely to be able to ride out any negative periods. But in any instance, negotiate an option to extend the maturity date. Exercising may cost a little money, but it places you in a much safer position.

The HOA's only concern is who will be on the title. That will be you or your entity after you close. They don't care who's on the mortgage or deed of trust.

The answer is yes. You will make them aware, and you should treat the transaction like any purchase involving an HOA.