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All Forum Posts by: Paul T.

Paul T. has started 7 posts and replied 33 times.

I always thought he was a scam, but several other investors I know and trust like him, so I ended up buying some of his lower level stuff, books, recordings and whatnot. They weren't very useful and now I'm in his click funnel/upsell/massive marketing campaign.

I think his system is probably quite good. I just hate those kinds of marketing tactics, so I would never buy any more of his stuff.

Not a big fan of wholesale lease options either. It's a lot of effort and money to reach motivated sellers. You'd want more than just a wholesale fee. If you're ok with that then just be a realtor haha.

Post: Anyone doing the rental arbitrage model?

Paul T.Posted
  • Investor
  • Fairfax, VA
  • Posts 57
  • Votes 21

@Jingru Sui Just putting it out there that you can negotiate longer leases and secure them with a mortgage (or deed of trust depending on the state). When doing rental arbitrage (or master leasing), you should be the one drafting the lease, not the landlord. All of these concerns that others brought up here, like landlord not renewing with you, should not be a concern because you should only be doing business with the right landlord, not every landlord out there. 

Just like every other strategy out there, you have to find the right seller/person for the right deal. 

Post: What do you do to find Subject To properties?

Paul T.Posted
  • Investor
  • Fairfax, VA
  • Posts 57
  • Votes 21

@Monica Breckenridge What kind of houses do you target? Preforeclosures? Absentee owners? Expired listings? What do you find works best?

How many post cards do you send out each month?

Post: What do you do to find Subject To properties?

Paul T.Posted
  • Investor
  • Fairfax, VA
  • Posts 57
  • Votes 21

Following. @Eduardo Beltran for what it's worth, I'm using PropStream and it allows you to set filters and you can see the loan info.

I agree with @Don Konipol, the only sellers I've encountered who will entertain the idea of a sub-to are those seriously behind on their mortgage, or those who have no equity to pay a broker for a conventional sale. 

Post: Investor offering lease purchase, is this a scam?

Paul T.Posted
  • Investor
  • Fairfax, VA
  • Posts 57
  • Votes 21
Originally posted by @Neil Aggarwal:
Originally posted by @Paul T.:

@Neil AggarwalHe wants to "wholesale" a lease option 

So, is there anything wrong in that scenario?

Theoretically, no. This strategy definitely works, but does the investor you are working with know the process and local laws well enough to execute it properly? What lender is he working with, and what will he qualify the option fee toward? And will he place a good tenant-buyer that will be able to execute their option to purchase within a reasonable term, or at least be a good long term tenant? 

There is a lot to be careful about with these types of deals, and unfortunately there are a lot of unqualified people out there attempting this strategy because it is a "no-money-down" way of getting into real estate investing.

Post: Investor offering lease purchase, is this a scam?

Paul T.Posted
  • Investor
  • Fairfax, VA
  • Posts 57
  • Votes 21

@Neil AggarwalHe wants to "wholesale" a lease option. I'm guessing he wants to sign a lease with an option to purchase with favorable terms to you, but with a lower option fee (almost like money down), then find a tenant willing to pay a higher option fee and take on the terms as your tenant. The investor walks away with the difference in the higher option fee paid to them and the option fee paid to you. This is their assignment fee. The tenant then leases from you and hopes to qualify for a loan during the period of the lease term to purchase the house from you. 

Post: Leads past the auction date?

Paul T.Posted
  • Investor
  • Fairfax, VA
  • Posts 57
  • Votes 21

@Ron S.I am trying to acquire rental properties by taking over people's payments, or entering a lease option with them. I find that even having to pay their arrears is much cheaper than having to drop 20-25% down when buying an investment property conventionally. Often times, I get a decent amount of equity immediately too.

Is this not possible to do after someone files for bankruptcy? If you take title and pay their arrears and satisfy their debt with their creditor, either by payoff or continuing to make payments, does that work?

Post: Leads past the auction date?

Paul T.Posted
  • Investor
  • Fairfax, VA
  • Posts 57
  • Votes 21

I use PropStream and can filter by Notice of Default, Notice of Trustee's Sale, etc. I can also search bankruptcy leads. I'm not sure I understand the timelines. I see some leads where the auction date has already passed (sometimes even by a long time), but when I cross check the property on zillow or the county records, it is still under the owner's name, and zillow still shows 'preforeclosure'. Should I still pursue these leads, or are these for sure owned by the bank at this point, and the info is just outdated?

Post: Basics of private lending

Paul T.Posted
  • Investor
  • Fairfax, VA
  • Posts 57
  • Votes 21

@Jamie BatemanThanks Jamie! This is very helpful.

Post: Basics of private lending

Paul T.Posted
  • Investor
  • Fairfax, VA
  • Posts 57
  • Votes 21

I posted this in the tax lien forum, but I realized it would be more appropriate here:

Hi guys, I came across the opportunity to private lend, but this is a new area for me where I don't understand the process and risks.

I am fine with the loan amount, term, and interest rate. The borrower is offering one of several properties of my choosing for collateral.

Some are commercial and owned free and clear (borrower runs a daycare business, has been in business for 20+ years). Others are SFHs but with mortgages on them.

What should I look out for to evaluate this deal?

Some of my own thoughts on what would make this desirable:

1) loan is much much lower than the value of the property

2) if there is no underlying loan and I am in first position

3) there IS an underlying loan, and I am in second position, but the first position loan is low relative to the value of the property and would be worth it to pay off/take over payments.