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All Forum Posts by: Marco Bario

Marco Bario has started 22 posts and replied 465 times.

Post: Need help with rental lease agreement

Marco BarioPosted
  • Specialist
  • Frederick, MD
  • Posts 473
  • Votes 452

Screening is so important.

I'd rather have a property sit vacant for another 30 days than panic and rent to someone I might regret renting to later. 

Call previous landlords... including two back (the current landlord may be incentivized to lie to get rid of a bad tenant). Visit where they currently live. They'll live that way in your home if they are dirty now. Is their car a mess? Meet their pets and children. Don't accept incomplete applications. The ability to follow directions is an indicator beyond a rent application. 

Set your rent a little below market to attract more applicants. Pick the one that rises to the top. 

Post: Have 2 SFH looking to Cash out refi (DSCR)

Marco BarioPosted
  • Specialist
  • Frederick, MD
  • Posts 473
  • Votes 452

@Chad Nassar -

Maybe it's time to develop a network of private investors.

Share what you do with friends, family, and individuals.

I heard a great piece of wisdom last night from two very seasoned investors. Ask what people are earning currently and offer them just a little more. If someone's making 5% in a money market and you offer 12%, they'll wonder what's wrong with the investment. 

But they'll listen if you offer 6% long-term backed by real estate. 

Congratulations on completing your two rehab projects and placing tenants. 

Post: Seller Finance and Subject2

Marco BarioPosted
  • Specialist
  • Frederick, MD
  • Posts 473
  • Votes 452

The two year balloon with no extension option is dangerous.
If market conditions in 24 short months cause the property to underperform, rates to be high so that you can't reach DSCR hurdles, or lenders to tighten - you'll be in a pickle.

Post: Sellers financing on 4 unit building

Marco BarioPosted
  • Specialist
  • Frederick, MD
  • Posts 473
  • Votes 452

Talk with the Seller. Build rapport, discover why they’re selling and  problems they’re trying to solve.

Tired of management? Wanting to minimize cap gains? Property needs repairs or updates? 

You can’t craft an offer that solves their problems - one they’re likely to accept - until you understand the problems they’re trying to solve. 


Post: Seller financing and realtors

Marco BarioPosted
  • Specialist
  • Frederick, MD
  • Posts 473
  • Votes 452
Quote from @Agustin Rossi:

Does seller financing works when there is a realtor involved helping the seller sell their home? Thanks!

I've done it. I took time to educate my agent... part of that was emphasizing that we'd be able to market to a broader audience, close faster, and sell at a slight premium. 

Also, I use professional underwriting and follow regulations and best practices. I can't emphasize enough that when working with other professionals, your reputation is on the line, and that of the other professionals. 

Post: Selling partials with wrap

Marco BarioPosted
  • Specialist
  • Frederick, MD
  • Posts 473
  • Votes 452

When I purchase a partial, I take full assignment of the mortgage/deed of trust and endorsement of the note. I want control. For you, as the seller continuing to hold the paper with an investor involved, dips a toe into the realm of making it a security.

Additionally, when I purchase wraps, I instruct the title company to pay off the underlying note at closing. I don't want the responsibility or risk of keeping the underlying in place.

Post: Sub to an owned owner financed property

Marco BarioPosted
  • Specialist
  • Frederick, MD
  • Posts 473
  • Votes 452
Quote from @Sebastian Butler:

Can you sub to an existing property you own that is currently owner financed? I am looking to start wholesaling owner financed deals and most people want to sell to an investor or end buyer. This could potentially get around that issue. Was curious if anybody does this or if it is even possible.


You could, but you promised the seller to make payments on the note, so it's a bad idea. 

Stay in the deal and continue as the party who pays the seller using a wrap.

Post: Sub to an owned owner financed property

Marco BarioPosted
  • Specialist
  • Frederick, MD
  • Posts 473
  • Votes 452
Quote from @Account Closed:


Sure, you can sub to an existing property you own that is currently owner financed. It's a smart move to explore this option for wholesaling owner financed deals, as it can help you work around the challenges of selling to an investor or end buyer.

Many investors do this, and it's definitely possible. Just make sure to review your existing financing agreement and possibly consult with a real estate attorney to ensure everything is in order.


Please don't wholesale subject to deals. If you don't understand the reasons why, you shouldn't be near a subject to deal. 

Post: Additional payments on your rental property mortgage

Marco BarioPosted
  • Specialist
  • Frederick, MD
  • Posts 473
  • Votes 452

It depends on your goals and the interest rate.

If your goal is to invest in more assets, and you have a low mortgage rate, why not take advantage of current 5%+ treasury money market returns (Vanguard has a couple with good returns and very low fees). I like these because they're fully liquid (you can withdraw at any time). 

If your goal is to have one free and clear property or the mortgage rate isn't favorable, perhaps create an amortization schedule that pays off whenever you target and make that your new monthly payment. 

Post: Why are Tax Liens and Tax Deeds documented evil on this website

Marco BarioPosted
  • Specialist
  • Frederick, MD
  • Posts 473
  • Votes 452
Quote from @Chris Seveney:

@Jay Hinrichs

Yup and people will buy them at tax sale then sell them seller financed for $5k after paying $100 to some sucker who wants to own vacant unbuildable land in middle of no where for $100/month


I receive submissions from investors holding anywhere from dozens to hundreds of this seller-financed paper. The pitch generally mentions that it's easy to take the property back in default and then just keep reselling to new buyers over and over again.

That's not my model, and it's always a pass. I mention this because some instructors advertise that there's a market for this type of paper. Myself, and I believe most of my peers who make a good portion of the secondary market for seller-financed notes aren't buyers. 

Keep this in mind.