All Forum Posts by: Michael Thompson

@Jay Garcia - I personally would not give the seller a piece of the profits at the end. I would negotiate what you want to give them on a seller financing agreement or 2nd lien note and mortgage. Otherwise you feel like at agent for one and secondly why go through the trouble of buying it on subject to? At that point just create a JV agreement.

@Nosbens Clervil - I would do this deal but you are stuck with the 20k typically. Unless the seller would work to get a mortgage modification. Sometimes the bank would wrap the arrears into sometimes.

I would do this deal and sell on owner financing. Lease option would be second best choice. Get out of the vacancy, repairs, etc. business.

@Arron Lloyd - I've been focusing on preforclosure sub to deals for a few months now.  But they do become cash intensive when bringing the mortgage current.  I like them when they still have equity or I can make a large cash flow between the mortgage payment and rent or wrap mortgage or lease option.  Did I mention they are motivated?!

@Ira Jeter - I would do this deal subject to if the current mortgage payment includes taxes and insurance. Sell on owner financing and have a loan serviced service the mortgage you provided. Also, get at least 10% down from the end buyer which basically pays you back your initial money. Make end buyer payment closer to rent prices and now you have good cash flow. Lastly you are able to push the end ARV within reason.

@Skyler Milton You have people doing subject to at a high level in your backyard.  www.mrtransactionengineer.com is in Atlanta doing sub to deals quite a bit.

@Ryan Deasy - No never with a HML. I agree with @Justin Hammond and you should tell the lender.  Especially if you are an established flipper.

@Brian Ortiz - In my opinion it’s control. Subject to gives you the most control, you own the property, but is the most risky for the seller. Sandwich lease options allow you to control the property without ownership and sometimes that might be worth it. Especially if you aren’t sold on the area and may want to not exercise your option to purchase.

@Shawn Gibson - You have a subject to professional in your back yard.  Eddie Ray out of Atlanta.  mrtransactionengineer.com

@Mark Enriquez - In Indiana we have to set boundaries regarding people in the foreclosure process as well. If you start offering any advice you could become a foreclosure consultant and can’t benefit from the home directly.

Having said that research subject to, lease option, sandwich lease option, short sale and owner financing. All could be options for the seller.

@Skyler Milton I agree with @Ron S. when he says it’s not a fee. However, I respectfully disagree with the rest. Your team is important and you do need to have the ability to payoff a loan in a pinch, hard money potentially. As long as you have a funding partner (multiple) that believes in your direction and you can consistently perform I think it’s a great strategy.