All Forum Posts by: Maxwell Fontaine

@Josh Griffeth I called several attorneys I will not lie. It was a bit of a tiring process to repeat that to several attorneys and explain what you are doing but its worth it. Just mention to them that its similar to a loan assumption on a purchase and sale BUT the loan is staying as is. They will probably want to cover themselves and make an acknowledgment that you and the seller will sign about the liability is still on the seller. If you tell them you will accept the risk and they understand that also they will be more open to it. But on my 6th attorney they knew what it was so they made it extremely smooth.

@Dillon Dale thank you man !

@Ray A Delfi I have heard its very simple as long as you know you have the 2 documents to sign to clearly show the separation. I think because I haven't been exposed to it yet I just wanted to learn a bit more before I lose my shirt doing something wrong. 

@Ray A Delfi plan is to rent it out as a straight rental. The PITI is low enough I could lease option the property, but I need to do some extra homework on that in the next coming weeks before I go down that road.

I'll have to pay 1 month PITI out of pocket estimated but it'll rent rather quick after a cleaning and new paint. So I'm not worried it would take longer than that.

Thank you @Mike M. I appreciate it!

My motivation is that I was homeless, I just love the idea that someone who was homeless earlier in life can turn around and own homes AND offer housing for others.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $58,000
Cash invested: $1,771

Took over the property subject to existing mortgage. Very motivated seller so this was a lay up for my first sub2 deal. TIMING IS EVERYTHING.

What made you interested in investing in this type of deal?

I really looked at this property originally as a wholesale deal but I found out there was no equity pay to entice an investor. Also, it wasn't worth me making a cash purchase. The only tool to use is to leverage the existing loan.

How did you find this deal and how did you negotiate it?

I found this deal through a cold call. I found this while on the phone speaking with another property owner as a comp and it was listed as a $0 transfer so it caught my attention. After I called the seller, I spoke about why the property transferred for $0 dollars and we spent a few days about the family situation. In terms of a negotiation, I just asked open ended questions directed towards the pain points so they would make a mental image of why they want to get rid of the property without me.

How did you finance this deal?

I just inherited the current loan. So a conventional mortgage is currently on the property but my portion was CASH for the passed mortgage payments and all closing costs for me and the seller.

How did you add value to the deal?

The property is pretty much move in ready in terms of big things. Part of how I made the seller feel much more comfortable about the deal I offered to clear of the property into a storage unit of their choosing at no cost and the day of their choosing as long as we use MY ATTORNEY. The value add is strictly cleaning up the property and taking care of the landscaping and interior paint.

What was the outcome?

The outcome, closed on the property after 17 days since the contract was signed. The seller felt happy and relieved that the "huge headache is just gone and I feel like I made money".

Lessons learned? Challenges?

This was overall a WIN WIN deal. Don't negotiate yourself out of a deal. Be open to use different tools to invest. NEGOTIATE THE TERMS. I am not very experienced in real estate if you compare me to some, I have only been in real estate for 2.5 years so far, but my mentor/ realtor explained to me how simplicity wins some times. We made an agreement while standing in the middle of the living room.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

No special professionals were used outside of an attorney.

@Samantha Smith

Hey Samantha, I am not licensed in your state but give me a call and I can walk you through what to do for your insurance on the property. Realistically they can drop you if they tell you to do something and you don't IF its something that can raise the level of risk of them paying out. Try to correct it before they drop you and other insurance carriers see you were dropped.

But seriously reach out I hope I can offer some assistance to you of any kind with this. 

@Sean Tippens 

You need to make sure they give you a full write up of exactly what they are doing. That doesn't sound right. Typically when they do a write up they either 1. realize they are charging too much and change the price; 2. do they write up and now you see why they are charging that high, maybe you are missing something; or 3. they don't do a write up at all because they didn't want you to question it.
However there is something else missing here, you might want to check that out.

@Gil Welsford

Tropical Heating and cooling

Tell them Max Fontaine sent you 😀