All Forum Posts by: Account Closed

I need someone to explain to me, why it is a GOOD/BAD time to buy a house? most people say the price of the houses wont go down why? Price of the house s will go up why ?

I know there are a lot of petty casual answers to this but i want to learn more about todays market and what's gonna happen IN YOUR OPIONION based on your past real state buy and sell experience...

So, did you find a house?

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Quote from @Account Closed:

List of Teaching - what you should know

New people ask all the time, "What now? and "How do I Do This . . ."and they Say, “I have Analysis Paralysis" and "I’m Just Getting into Real Estate" and "How Do I get Started" and so on. Two people just PM’d me specifically on those types of questions.

How do you know what questions to ask? So, here’s the answer

You Start at the beginning and ask what your goal is.

Is it a pick and choose what you want to know first or is it more of a sequence?

"Is it a pick and choose what you want to know first or is it more of a sequence?"

As you can see from the list. it's far more than just Subto, which some people teach (incorrectly). We teach you all of the necessary components for safe, secure, successful, investing.

As such, we work “one on one” with your most pressing issues/questions and combine that with the fundamentals up to the sophisticated investing. From crawling, to walking, to running, to setting records.

Planning your time is more important than ever. There are soooo many distractions and time wasters. It's time to commit!

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Quote from @Bruce Woodruff:

Like @Bruce Lynn said, just be honest, that's always best. I recently had a contract expire on a property that I had for sale. The Realtor expected me to resign and I passed deciding to list it myself. She was really upset for a while, got her Broker involved and made some idle threats. She eventually backed off and apologized (sort of). But at least I was straight-forward with her right up front, it's fair to the agent and easier for you (ultimately)....

I had an agent, tell me they had a buyer for my property and if I signed with them on a 6 month exclusive contract, they could sell the property in a week. I asked them why they would need a 6 month exclusive listing if they already had buyers. They said "That's the way the listing agreement is written". I said "Oh? maybe you need to rewrite the agreement" and kindly asked them to leave. What a joke, a 6 month exclusive for a property they said they had a buyer for. If they had a buyer, they wouldn't walk away from a $45,000 commission. ;- 0

2 Votes

Pittsburgh, Pennsylvania

Quote from @Jay Hinrichs:

Quote from @Nate Marshall:

Quote from @Chris Seveney:

Quote from @Justin Rush:

Hey BP,

After spending >50-55 hours of watching and researching Pace Morby's videos and training; looking to get some actual students insight on the ROI of the program. Everyone in the forums continually say, "all up to the person, made back my money and more", without ever saying how many deals they've done, what Intrinsic value was provided, etc. seeking ACTUAL results, ACTUAL deals done, ACTUAL ROI please.

For reference, I have capital, time , and a relentless work ethic. I was seeking the membership program to leverage economies of scale and ultimate velocity of my capital.

Want to get a last sanity check before forking out > $11,000 in the program membership.

Any and all feedback welcomed.

check out the FB group with 100,000 people in it and ask yourself are you surrounding yourself with people who are 10x smarter than you? Will not answer that for you, let you make the call.

Verbatim from an email promo Pace's people sent out. So the gators are looking for 200% returns? $2,000.00 lent gets $4,000.00 as the return.

Hey,

I was asked what a typical Gator Method deal looks like recently.

Each Gator deal I do is different in some way, but here’s how a recent one played out.

It was with someone who’d already found a property AND they’d got a buyer for it.

I didn’t have to do ANY of that work.

All they needed was the earnest money for the deal which is why they reached out to me.

We talked on the phone and agreed on my rate for the investment.

I then sent him the paperwork and wired the money.

Simple.

And the result?

I funded him 2 grand.

I got that back when his deal was done 9 days later…

…AND I made 4 grand on top for a 200% return.

Sweet!

Here’s where it becomes a thing of beauty…

…it looks like I’ll be working with him on more deals just like that this year.

How many deals do I need to make that a 6 figure income stream?

If I get the timing right with each, I can even recycle the same 2 grand over and over again to get a 200% return each time.

You could do that, couldn’t you?

well if the gator made 4k on the deal you have to think the wholesaler made a bunch more than that .. and at that point can probably self fund their EM rather than borrowing it.

The post I saw said he teaches that for only $11,000

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Destin, Florida

Quote from @Darren Gillespie:

Quote from @Account Closed:

Quote from @Darren Gillespie:

Does anyone know if you can legally rent a subject to property? Specifically to HUD via the Housing Choice Voucher Program (AKA Section 8)

Sure, if the Subto was done properly and legally, you can rent it out. Problem is if the Due on Sale gets called, you have 30 days to resolve the problem or you may have a serious issue on your hands. Get properly trained before you try that.

Got it. How do I get trained on how to do this? Do you offer training?

Yes, we do but it has to be discussed in Private Messaging. Bigger Pockets doesn't allow discussions like that in the forums. Use the Bell in the upper right hand corner if you want to connect.

To answer your question, if a Subject To loan gets called, you have 30 days to pay off the loan or the property can and probably will go into foreclosure. If you have tenants with a 12 month lease and 6 months are left, what do you do?

Or, if you are counting on the rent to make the underlying payment and the renters quit paying, and you have to evict, you have to still make the underlying payment, what do you do?

There are ways around this but There is more to know. 'd be happy to help.

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Dallas, Texas

Quote from @Darren Gillespie:

Does anyone know if you can legally rent a subject to property? Specifically to HUD via the Housing Choice Voucher Program (AKA Section 8)

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Dallas, Texas

Quote from @Deb S.:

Quote from @Account Closed:

Quote from @Deb S.:

Quote from @Nate Marshall:

He has had more than 10 called due. Banks are wise now. They are even discussing this at banking and mortgage conferences. Pace is finished. Prison awaits!!!

Why are you mentioning prison? Subto is NOT illegal. It is on the HUD statement on line 503. There is no 'crime' committed. The banks MAY call the loan due but it is not illegal to buy a property sub to the existing mortgage.

You are correct, Subto IS legal, when done legally.
Withdrawing money from the bank IS legal too, when done legally.

Are you aware that when done improperly, Subto can lead to charges of Consumer Protection ACT violations, artifices, deception by omission, equity skimming, bank fraud, mortgage fraud, tax evasion and so on. Just say "No, I didn't know that". Well, yes it can.
https://agportal-s3bucket.s3.amazonaws.com/uploadedfiles/Hom...

Now, "charges" doesn't necessarily mean anyone is guilty, but why put yourself in that position? Court ties you up for a year to a year and half with no guarantee of the outcome. (and is no fun.)

I’m here to protect people from making very bad mistakes, as I teach Subto “safely and legally”. It’s up to individuals though, to get serious and learn things properly.

Be safe, know the law, stay legal. There is zero talk of that at the Subto "community" (Bad news interferes with increasing the sales, cuts into the profit margin I suppose).

So you assume that Pace teaches how to buy a property subto without providing a legal contract with needed addendums?

If you were in the community, you’d know how ludicrous this sounds. Pace spends tens of thousands of dollars keeping contracts updated for all of us.
You shouldn’t make assumptions on how the mentorship works.

You're very funny and I probably wouldn't work with you. You didn't read what I wrote and you are saying things I didn't even say and things I don't believe. In court they call that "false testimony". I would suggest you ask people what they believe, rather than telling them what they believe.

By your focus on the contracts, which I didn't even bring up, I surmise you have no idea what can go wrong after the closing, thus proving my point. Have a nice day.

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Quote from @Account Closed:

Subject To is definitely NOT a “No Money Down” technique”, Here’s why . . .

The obvious question is: "How Do I Keep Finding These Smokin' Deals"

It costs money to locate a willing seller. One of the largest wholesalers in Phoenix says it takes them $2,220 to get a wholesale that closes. It’s about the same for securing a Subject To. Think about the time and money you put into marketing. I do it for a lot less than that, but I’ve streamlined the process. Yet, $2,220 is the normal.

Here is an example of a Subject To I did, in foreclosure, bringing their loan current, taking over their loan and giving them “cash out”, they had a previous loan mod as a 2nd loan. Think of it this way, if they aren’t paying their mortgage, chances are they don’t have money to move, which creates a problem. So, give them money to move.

Bought for $157,100.38 ***

***

ARV

$245,000.00

5 bed 3 bath – Phoenix AZ

These are the numbers from the HUD statement

Bought for $157,100.38 ***	*	ARV	$245,000.00
Existing Loan Amt Payoff $118,145.37	*	Subject To	$118,145.37
****
Closing Costs From HUD
Title			$1,045.00
Escrow			$1,400.00
County Taxes			$538.38
Recording Fee			$120.00
Cash to seller			$10,000.00
Misc other charges			$525.00
Total Amount Due $			$13,628.38

***
Arrears To Bring Account Due
	Total Number of Missed Payments:	11
	Total Payment Amount	$10,095.47
	Unpaid Late Charges	$146.84
	Additional Amounts:
	Foreclosure Fee/Cost	$354.19
	Unpaid Advance Bal	$1,101.75
	Total Amount Due $	$11,698.25

***
	FHA Loan Mod 2nd		$11,582.44
***
	My Out of Pocket		$36,909.07
***
	Total Cost Basis of Purchase		$155,054.44
	ARV (After Repair Value)		$245,000.00
	Repairs Post Purchase		$ 5,000.00 +/-
	Unrealized Profit		$84,945.56
***
	Equity (ARV minus Subject To payoff)	$126,854.63
***

I strongly recommend having 3 months reserves as follows:


	Monthly Mortgage		$917.77
	(Taxes included)
	Electric Monthly		$362.21
	Water & Sewer Monthly		$102.80
	HOA – None		$0

Reserves

3 months mortgage payments @ $917.77 per month = $2,753.31

3 months Electric payments @ $362.21 per month = $1,086.63

3 months Water payments @ $102.80 per month = $ 308.40

Minmum Reserves Total $4,148.34

Then I turned around and sold it on a Lease Option for $265,000 getting $20,000 down on a nonrefundable Option fee, and rent of $1,900 a month.


***
	My Out of Pocket		$36,909.07
	Option Fee To Me		$20,000.00
	My Adjusted Out of Pocket		$16,909.07
* *	My Cash Flow	*	$ 982.00 monthly

So, I sold it for $20,000 more than street value, I get tax write offs, I got $20,000 back immediately as an Option fee, I cash flow at $982.00 a month and if they exercise their Option, I’ll get $146,854.63 (minus the $20,000 Option fee) equals $126,854.63 cash along with any pay down during their Option period. If they don’t exercise their Option, I’ll do another Lease Option.

That’s why you need money to do Subject To, the right way, wisely & legally.

If you would like a copy of the spreadsheet so you can calculate your potential profit when you do Subject Tos, and how much money you should be working with, send me a DM with your email address (don’t post it here, that’s crazy to do ;-) ) and I’ll send you the spread sheet.

No matter what you have heard, there are still a lot of properties out there with owners who will consider Subject To and Seller Finance, you just need to know to find them.

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Quote from @Deb S.:

Quote from @Nate Marshall:

He has had more than 10 called due. Banks are wise now. They are even discussing this at banking and mortgage conferences. Pace is finished. Prison awaits!!!

Be safe, know the law, stay legal. There is zero talk of that at the Subto "community" (Bad news interferes with increasing the sales, cuts into the profit margin I suppose).

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Quote from @Orhi Tahi:

Quote from @Account Closed:

Quote from @Orhi Tahi:

Hey all,

What are the best ways to assume someones loan ?

For example, if someone is at foreclosure can I assume that loan if its FHA or VA ?

What other creative options do you have in mind to find assumable loan ?

Orhi

Assuming someone's loan means you have applied to the lender and have been approved. Buying the property on Subject To simply means you have taken over the loan and the lender is not involved in that process.

A lot of new people confuse the two, but they are very different. Some people who mentor don’t actually understand the differences. Oh, and I’d ask about any fees they ca n waive.

We teach how to take over a property Subject To. If your questions are actually about just taking over the loan without involving the lender, I can answer those questions. However, if you have come across a seller who has an assumable loan, I'd direct you to talk to the lender to see what requirements they have.

How do you avoid due on sale close ? What are your top 3-4 strategies

I've ony had two called in 30 years. One in 2008 another in 2020. ;-)
So, of course it's included in our training but the answer is not to deed it back to the seller and re-buy the property using an executory contract as someone has suggested. The due on sale clearly states that executory contracts violate the DOS. There is a lot more to be aware of than just the DOS. I'd recommend finding the right guy and being trained. Bigger Pockets doesn't allow us to reach out to others, it has to be others reaching out to us. Why do they do that ? Becasue it's their site and they call the rules.;-) I'd be happy to answer your questions.

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All Forum Posts by: Account Closed

Account Closed has started 141 posts and replied 4068 times.

Post: why it is a good / bad time to buy house?

Post: How I Made Millions Investing In Real Estate - Common Questions & Answers

Post: I have a clingy real estate agent and I'm not sure what to do.

Post: Pace Morby Program

Post: Renting a Subject To Property

Post: Renting a Subject To Property

Post: Pace Morby Mentorship

Post: Subject To – Why You Need Money To Buy Using "Subject To" (SubTo) - Safely, Legally

Post: Pace Morby Mentorship

Post: What are the best ways to assume someones loan ?