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All Forum Posts by: Pablo Mendez

Pablo Mendez has started 16 posts and replied 77 times.

Quote from @Eliott Elias:

Snap on it NOW. Do not let him file for bankruptcy. Take over his payments and get the deed transfered in your name 

He is filing for bankruptcy not because of the house. Mainly because of $60k credit card Debt and $700 month car payment. 
Quote from @Chris Davidson:

@Pablo Mendez why not buy it now sub to. He is going to lose it any ways and sounds like has decided that it is gone. If he is current on payments now get it under contract to buy at a date in the Spring before he files for bankruptcy, and give him some walking around cash to get into an apartment as that will be near impossible after bankruptcy.

We were working a Subject To. I had everything lined up. That's when he told me he will file for bankruptcy. I then talked to a bankruptcy lawyer that said he filing for bank would mess up the Subject To, bankruptcy person would reverse the title transfer or make me pay the equity into the bankruptcy funds. 

Hello. I want to buy my neighbor's property. I have spoken with him over the past several weeks. He will file for bankrupcy in the Spring and stop making payments on his home while it goes into foreclosure (to save money not making mortgage payments) 

How can I prepare to snap up this property when it gets near getting foreclused in 9-12 months? 

223 Cherokee Drive

Worth $250K

Mortgage balance today $195K 

Some additional information 

The tentative deal we have so far is that I take over his mortgage Subject To, mortgage pay off as of Nov 28th is $199,000. I would give him $20K cash, that is what he needs to walk away with. Property as is worth about $240K. Planning on doing $10k renovations (chanign dining room to 4th bedroom, new doors, new paint etc) It should then appraise for $270k-$280K. 

I just qualified for a mortgage on my name to buy it the traditional way but the mortgage terms are not good. 8% interest rate and $10k closing costs and $5K to buy points, 30 yr mortgage. 

His current 30 yr mortgage is at year 26 and has fixed rate 3.75% interest rate. It currently has PMI.

This is the property in question 223 Cherokee Drive




I am in the process of purchasing my neighbor's property Subject To. Have all the documents, have a title company that understands Subject To and is on onboard, have a CPA that is familiar with subject to and has given some advice. Have documents for a Trust and LLC ready.

Everything was good to go, Was talking with my neighbor over the last details, getting his loan balance etc to sign the sales contract. He said to wait a few days because he is planning on filing for Bankrupcy in three months in the Spring. He asked how is that going to affect this ideal. I'm glad he brought this up. 

So past few days have been gathering information about how a bankruptcy affects a Subject To. 

The title company says it's too risky. CPA says it's too risky. 

A bigger pockets member that I have been texting with said regarding the future bankruptcy, "Yes its a mess. Some say no problem since the title changed. Ask your neighbor if he'd stay in the house through the bankruptcy and you buy after its settled. A primary residence is protected."

I am going to speak with a bankruptcy attorney tomorrow for an hour to gain any insights on how this may play out and what are some of the pitfalls. 

Anyone on here have any insights or experiences with Subject To before or after the seller files for bankruptcy? 

Should I work the deal differently or have additional contracts specific to what happens in case seller files bankruptcy? 

Thanks. 

The property is no longer listed. If that changes anything. Was taken off the market two weeks ago. 

My immediate neighbor had listed his home for sale $250K in Abita Springs, Louisiana. It was on the market  for two months, was pending but buyer backed out. 

I am strongly considering purchasing this home. I spoke with my neighbor and he would sell for $225K to me private party. I am familiar with the basics of real estate, I whole sale sold to properpeties before. 

Question 1: He had a realtor for two months, neighbor decided to unlist the property and take off the market to see his other options, He was considering renting it out. Is his contract with his previous realtor now completed? Can he sale his property to me private party without getting the previous realtor involved? Or does he owe previous realto some amount for two months of marketing?

Question 2: Do I get a purchase agreement from a local title company or do I get a purchase agreement from an attorney or online?

I plan on renting this property for $2100 month. 

Post: How did you create you DM list

Pablo MendezPosted
  • Abita Springs , LA
  • Posts 80
  • Votes 43

We are using a firm from Dallas. They can build your list and print /  mail the letters and give advice along the way. We are happy so far. Have mailed 900 letters and received 61 calls. Your call activity may be different focusing on commercial sellers. 

http://marketlikeawholesaler.com/yellow-letters-direct-mail/

Post: Journey of a wholesaling wife and husband team...

Pablo MendezPosted
  • Abita Springs , LA
  • Posts 80
  • Votes 43

Hello BP, 

Busy week working a deal. 

Signed purchase agreement on a duplex this past Sunday 11th. Today signed the Assignment contract with our Investor end buyer. Have a crazy two weeks coming up to finish up this transaction. 

Several things we are going to adjust and change. Going to change the verbiage we use with the sellers among others; and will get more specific criteria from our buyers list. 

Now Amy and I are going into 4 shifts in a row at the hospital. Will give more updates on this Duplex once we go to closing. 


So today concludes our first full month of direct mailing. 

900 Letters

61 Calls

5 possible deals

3 on site appointments

1 property under contract 

The letters did great at getting people to call, but like others have said... not too many truly motivated sellers. But this is the marker where we are at so will keep working it and learning it. 

Crazy emotional highs and lows this week, but mostly exciting... 


This Saturday our letters go out for the 2nd month, same list minus those who called in already. Expecting a much lower volume of calls during this 2nd month. 

You all keep learning, stay motivated... Focused Intensity!