All Forum Posts by: Paul Fagot

@Barry Pekin now when you market or advertise out to your list, let's say Direct mail, FB advertisements or door hangers whatever the strategy you rock with is, what do you normally say? like the normal "We buy houses" or do you change it up to say something different. I just don't feel like that sounds right when it says "WE" since its really someone else buying it and not both of us.

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Originally posted by @Barry Pekin:

@Paul Fagot,

Total honesty. Though this level of detail doesn't come up unless we have been talking for a while. At the start, I don't ask about buying their house, I ask about them selling. Of course, that's if the call is a cold call. If they reached out to me, it's already understood that they want to sell.

When we get there, I say that I work with a lot of other local investors who are looking for properties like this. They want to fix them up and either sell them or keep them for rentals. Of course, they're looking to make a profit. At this point, I generally get a confirmation from the seller indicating they understand and that clearly businesses need to make a profit. I had someone recently ask if I was an agent, at which point I said no. She also asked what my fee was, and I said that I work that out with the ultimate buyer, and that I would enter into a sales contract with her for a given price, and that that was what she would get. No fees, closing costs, etc. The price we agree on is the price she will get. And of course we'd going into this in more detail when we review the contract.

Thanks again Barry! thats the best advice ive gotten on this forum so far all ive read are agents and wholesalers going at each other back and forth back and forth! I appreciate that!

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So wholesalers, what's the best and most honest way you tell your sellers what you're doing?? How straight forward are you?

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@Barry Pekin thank you for your input and help!

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Originally posted by @Barry Pekin:

@Paul Fagot,

Banks are not fond of Subject-To deals. In fact, the typical financing contract has a "due on sale" clause that says when the property is sold, the entire loan comes due. In practice, however, I've never heard of (1) a bank realizing that the property was sold, (2) caring, since they're getting paid, or (3) exercising that clause.

Some people only do Subject-To for a short time while they work out another exit clause. Some use it as a longer-term solution.

I think a bank would care if interest rates started to really climb. If rates were up 5% over what most of their loans are out at, it would be worth a lot of money to them to seek out properties that have been sold and call the loan due. Right now, the rates have been going the other way (down), so there would have to be a drastic reversal on rates for that to happen.

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So my thoughts on it and the idea of everything go like this please let me know if I got anything wrong.

I get a property with little to a lot of equity, all numbers make sense, and get it under contract (A contract that's approved by my attorney), go to the title company have them do what they do, I pay the owner some money/ expenses plus pay off the default amount (if there's a default amount) and have them move out, remodel it (if needed), if not then move someone in for a year or two, build more equity and collect the cash flow. (payments would not be missed because that's my responsibility and a promise I made the seller in the first place) I could either do a lease option as you said with a downpayment or sell it in the future? Are you even able to sell it? I don't think it would be a problem since, in the end, the lender would get their money back is that sound right or the general idea?

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Thanks, @Barry Pekin Yeah I'm trying to figure out if the best way is to contact the lender of the motivated seller if they're interested in that type of deal structure and talk with them first to see if they're okay with that before getting it under contract or not. Or if that's even an approach to take.

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@Ron S. Thanks I’ll check it out! Could you tag me in the discussion?

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All Forum Posts by: Paul Fagot

Paul Fagot has started 66 posts and replied 195 times.

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Post: Thoughts and experiences with subject to deals?

Post: Thoughts and experiences with subject to deals?

Post: Thoughts and experiences with subject to deals?

Post: Thoughts and experiences with subject to deals?

Post: What are your thoughts and experience on subject to deals?