All Forum Posts by: Pat G.

@Brent Coombs Sorry about that, I will explain. 

The house that is over leveraged, I have taken Subject To and made the previous owners make up the difference of in mortgage payment (if any) to what I could get from a renter. 

Example: 

Mortgage payment with taxes and insurance (PITI): $1,300

I know that I can get a tenant in there at $1200. 

So there is a $100 difference that needs to be paid by the owner so that I can help them in buying there house. 

So in the purchase contract I put that the owner needs to send me a check until the house is sold for $250 (my profit and the difference in what a renter can pay) and if I don't get that payment the mortgage (which is still in the owners name) doesn't get paid until I  get said check.

With the Subject To properties we worked hard to get people cashed out in 5-7 years, but some just stayed in there for more.

With a Subject To you are leaving the mortgage in the owners name, not getting a new loan, bringing cash, etc. so there is great leverage because the owners usually have good credit and don't want to screw it up. I have done hundreds of these types of transactions so I do apologize if I go to fast.

I have no problem with explaining.

Zac:

No question is a noob or dumb question. If you have MS Word you can use the mail merge feature and print them right at home onto Avery Labels. Actually, I just finished a step-by-step video course which I will let you have access to for free if you give me feed back on the course. Only if you give me feedback - Thanks in advance also. 

https://www.udemy.com/5-steps-to-automating-your-d...

Another way is you can get your list of names and take them to Staples or Office Max and have them print them out for you. If you can order printed stickers already done, do that.

I have done it both ways.

P.S. I am assuming that the mailer is like a post card?

Abdul:

Welcome. 

Check out a mentor of mine right there in Jacksonville by the name of Ron LeGrand at www.ronlegrand.com

He is the God Father of real estate and has trained most all the gurus out there now.

Joe:

First  - Thank You for your service. God Bless

In the DC area check out Tom and Carolina Zeeb at

http://tractionrealestatementors.com/

they also host the local REIA there. Tom is great and does a lot of deals.

Luis:

The best comps are from a Realtor using the MLS service. Try to find a newer agent that can run them for you and promise them that they can have the listing on 1-2 of the units in exchange.

Also, sometimes if you have a licensed builder friend they may also be a licensed Realtor, my brother-in law is that way. He got tied of asking the Realtor to do it.

Now a 4 unit is I believe commercial, so you could use LoopNet or CoStar for comps. Now to get that feature you may have to pay a monthly fee. 

Danny:

What is your strategy for purchasing the home, i.e Subject To, Direct Buy, Wholesale or Master Lease, etc.? Or are you just looking for anything? If you are looking for anything you have to be ready for all things. 

House that is over leveraged you do this...

House that needs work or is a junker you do this....

House that they want retail price  - RUN AWAY FAST!

House that is rental property you do this....

House that is dead relatives you do this....

When I was buying homes using the Subject To method, my first question to the caller was "Would you sell me the house for what you owe." That usually gets the ball moving, now if they say the house is over leveraged, well you can take payments for that can't you?

The key here is I had a method of purchase and then followed a process. That is what you have to do select a purchasing method and when you do that YOU WILL KNOW WHEN YOU HAVE A DEAL, because it will be right in front of you. 

P.S. Direct mail is great and still works.

Good luck, let me know your purchasing method as you have a great marketing tactic.

DJ:

I'm a little confused about the "leads" part, but anyway I would put in the contract that you have 60-90 days to find a qualified buyer, if not the opportunity comes back to the original owner -or you just don't exercise the contract.

Make sure your earnest money deposit is like $1 or $20, not thousands either.

It is all in how you talk to the seller when you walk the property or talk to them after wards. You make everything out to be a huge deal, tell them that you usually don't take on something in this area, in this bad of shape, etc. Also, say something like, my buyers are very picky. You can try that until you get a feel for the opportunities and your end buyers as well.

Daniel:

Where I live in MI the department that does the sign enforcement is the Inspection Department. When I did do signs for my residential properties, during business hours they would take my signs and then issue me a ticket. Now, you can't just pay this ticket, you had to set a court date and the one and only time I did go through that process I was in court next to a guy in an orange jump suit and leg shackles. Message received! Needless to say I didn't put any more signs out during biz hours again. Actually I think I went to the next city over and bought properties there because they didn't enforce them.

What I am saying is to know the law, most cities are against bandit signs, but a lot of the enforcement is not done off hours (after 5 PM) or weekends - which is when most people are out looking for homes anyway.

Hope that helped.

P:

As a mentor/trainer once said to me, when you are broke "go buy a house." She was talking about buying properties Subject To. Where you take over a pretty house's debt and usually get paid to do so. 

Get focused on what you want to do, residential or commercial. That is great that you have credit/equity partners. Their amount of investment may guide you into which you can do as well.

Lu:

I agree with Anthony and your gut check. You are spending too much time on the little stuff. Ask them both for the reason if if sounds realistic, then go for it.

Now, remember there are "Professional Tenants" out there who are people who just don't want to own a place of their own. With that being said they don't do the same things you and I would do so take that into consideration. 

One red flag with me was child payments in arrears - gone baby!

Just ask yourself one question - who is making the mortgage payment on your bldg. next month - Them or You?

Pat