All Forum Posts by: Account Closed

I am wondering what it would take or how long it's going to take for some of these lenders to just run an algorithm identifying all the loans that have been assumed by another party when it's a non-assumable loan.

Seems it'd be fairly simple to implement

Imagine doing a deal that is 100% dependent on the mercy of a bank. You have to keep getting "lucky" every year in order to keep your business going. Imagine having a portfolio where a bunch of your loans get called due to the "due on sale" clause. Absolutely done

There is a way to do this legally and "relatively" safely, but the way it is currently being promoted does Not meet that criteria.

He says "The bank does not care if you buy the house subject to".

0 Votes

Dallas, Texas

Quote from @Shawn Herring:

There are couple properties going to a Sheriff Sale with the amounts owed to banks significantly less than the actual value of the properties. I want to reach out to the owners to see if I could buy the house from them before the Sheriff Sale happens. I have bought multiple SFH already, but this is my first time trying to buy from someone losing their home to a bank, so I want to be respectful... but I also want these deals. Any advice from those who have actually done this before?

There is a whole "thing" to dealing with preforeclosures. When we teach students, it's to treat them like friends or neighbors. You start with knocking on the door, tell them you are going door to door seeing if anyone in the neighborhood is open to selling their property. (Make sure you actually go to other houses as well). The people know they are in foreclosure unless it's a rental. If they bring it up, that's the time to get the info you need to know if you are going to buy. There is much more to this but that answers your original question.

0 Votes

Indianapolis, Indiana

Quote from @Ann Bilinski:

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Building a real estate portfolio is a journey that involves various factors to achieve success. Whether you're seasoned or just starting, learn how to use creative funding strategies to generate cashflowing properties in California.

Are you saying you can use creative funding strategies there? Imagine that. Frankly I'm not sure why people don't believe you can. But, of course you can. ;-)

It's a different question altogether if it will cash flow, but that's not what everyone looks for.

0 Votes

San Diego, California

Quote from @Christopher Stewart:

I've got a 3100 foot SFH rental with two different Heat Pump AC units, I think a 3 and 4 ton units. One of the units is about 15 years old and now needs a 1200 repair. The other unit is working but it's 25 years old and I'm told by the AC tech that the air handler blower motor and assembly is starting to fail and will cost 2500$ to repair. So I'm already starting to consider impounding some money to save up for just replacing the whole unit. There are different price ranges for replacement of heat pump split units that range from 5k-12k. Of course the more you pay the more efficient the units are. Since I am not paying for utilities on the rental, is there any reason to replace with a higher efficiency unit. I can't imagine that's going to be a big enough selling point for a renter to justify the higher cost?

I just replaced an air handler blower motor in Phoenix. It cost a couple of hundred dollars for the motor. It's usually just a few bolts and a couple of wire connectors. There is a also a condensor that might be the problem and that's maybe $80. I'd call an electrician and see what they would charge.

0 Votes

Scottsdale, Arizona

Quote from @Chris Seveney:

Is there a support email for biggerpockets? Curious as when I email support at biggerpockets I never get responses so curious who to talk to as I am not able to update my account type, change my credit card etc.

Curious where to go?

If you go to your dashboard, then scroll all the way to the bottom there is a "Contact Us". sometimes they respond to your email address.

1 Vote

Quote from @Billy Daniel:

I believe the subto community when they say it's not an issue, as long as they were saying that before 2022. My opinion is the higher interest rates and tighter lending standards are causing banks to look for other opportunities to shore up their holdings. If you were holding a loan that was paying you 3% and you found that you could call it due and essentially get double the interest, why wouldn't you do that? Sure, there's a chance that the borrower could default and you're stuck with a foreclosure, but I would think it's worth the risk.

Your comment: "I believe the subto community when they say it's not an issue, as long as they were saying that before 2022."

In his latest video he says "lenders don't care if you take it over Subto"
You might want to tell him that times have changed and they do care. Of course that will hurt sales for his Subto community. :-0

0 Votes

Dallas, Texas

Quote from @Chris Seveney:

Quote from @Hector Espinosa:

Quote from @Chris Seveney:

@Hector Espinosa

We buy loans on the secondary market. We have a loan that was sold sub to and we did due on sale clause. Borrower / buyer flipping out telling attorney we can’t do this. Umm. Yes we can

Foreclosure is scheduled for February 6th.

Hey Chris, from your perspective, what would you request from the buyer in order to avoid following through with the due on sale clause?

We would not request anything as we do not have any agreement with them and are not interested in a new agreement with them. For us its keep it simple, you had a contract and you need to understand the ramifications.

The moment we start doing it for one not the other then we will get accused of something. Not worth it.

Your Comment: "The moment we start doing it for one not the other then we will get accused of something. Not worth it."

And why would someone (a new lender) want to take the risk of keeping a low interest loan, taken over by someone who didn't qualify to buy the property, and didn't go through the new lender's underwriting?

1 Vote

Dallas, Texas

Quote from @Hector Espinosa:

Hey guys been reading up on subtos and other type of real estate investment strategies. People like Pace Morby make it seem like there is zero chance whatsoever the due on sale clause would be triggered. I find this hard to believe. Curious on your experiences with doing subtos and general thoughts on this investment strategy. I have not done one of these but would like to in the near future. Feel free to drop your thoughts below. Thanks!!

@Hector Espinosa: You are an observant fellow. He just put out a video where he says he has had 10 Due on Sale called recently and is currently dealing with a new one. His students have a had a couple of dozen called. The reason he did the video was to show " there is nothing to fear regarding Due on Sale" which is very curious to me. I've been at this for 30 years and have 2 Due on Sale called. It is a very big deal. It can be career ending.

Fortunately I have the experience in how to properly avoid it as much as is possible and to deal with it properly when it happens. In my humble opinion, avoid the hype and instead work with someone that respects your future.

I’d be happy to answer your questions here or privately.

This is a spreadsheet on an actual Subject To we've done

https://www.biggerpockets.com/forums/311/topics/1141313-subj...

0 Votes

Dallas, Texas

Quote from @Monika Ruszaj:

Hi all! First time poster here looking for some advice. I work a Corporate 9-5 (Risk Management and Insurance) and looking to get out of the rat race,

Welcome Monika, a lot of us come from the corporate world, so I understand what you're talking about. Training cuts a year or two from the learning cycle. You can probably find everything for free on Bigger Pockets and various other sources. But if time and accuracy are important to you, you go with the training. One on one is far superior simply because you for sure get your questions answered rather than competing with everyone else in a large zoom or youtube setting. I’d be happy to answer your questions.

1 Vote

Chicago, Illinois

Quote from @Tom Hall:

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...

Hi Tom, it isn't timing that counts, it's the deal that matters.

1 Vote

All Forum Posts by: Account Closed

Account Closed has started 141 posts and replied 4068 times.

Post: Subtos - Due on Sale Clause

Post: Best way to make an offer BEFORE the property ends up at Sheriff Sale

Post: Creative Financing Strategies Used to Build Real Estate Portfolios in Southern Califo

Post: Heat Pump AC unit replacement

Post: Biggerpockets Contact information for support?

Post: Subtos - Due on Sale Clause

Post: Subtos - Due on Sale Clause

Post: Subtos - Due on Sale Clause

Post: Hi! Rookie here looking for educational advice

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