All Forum Posts by: Roger Paschal

There is no Due on Sale Police, the loan is serviced by a Servicer who is paid just a few dollars per month to service the loan. The money for the mortgage most often comes from a hedge fund type of investor or the Government, the Servicers concern is, is the loan preforming, is there insurance on the property and if the guy on the mortgage not creating any issues?

I have seen and heard many times over the years, "yea the Bank just wants to foreclose so they can reinvest that money in a higher interest loan" that is BS.

Let me ask you this, if you worked for a Servicer and you went to your boss and told them, "hey Boss I am going to foreclose on a bunch of preforming loans", how long do you this you would keep your job? How long do you think the Hedge fund is going to place more properties with that Servicer?

In my almost 20 years of doing Subject 2's and working with other investors in almost every State in the US, in the very few instances the Due on Sale is called it is because if the inexperience of the Investor in not knowing how the transaction is to be done, (not closing with a Title Company or Attorney, not doing the Insurance correctly)

Most of all, (not communicating with the seller) Bank calls the Seller to offer them Life Insurance or some other service, and the seller tells them, "I don't own that house any longer, some guy took that house from me and put some renter in it"

If you dig into any investor that tells you they had a property or a friend of their brother in laws Collage roommate that had the Due on Sale clause called, you will most likely find that the investor screwed up somewhere.

This is why Education and knowledge is needed on any Real Estate transaction.

I get calls almost everyday from someone who screwed up on a Subject 2 and is asking to be bailed out, many times they do not want to pay for help, and things just get worse.

If you know how to make the Bank Comfortable with the transaction, all is good.

Last year I had a couple of hedge fund managers call me asking how they can offer their under preforming loans to Investors to by Subject 2, wow what a great deal, I could call Pace and he would have buyers the same day for a 1,000 homes, but the legal aspect of this would hold the Hedge fund liable so we could not do a deal. If anyone here has any ideas how to make this happen, let me know and we will make a Million dollars in one day.

If the hedge fund has lets say 20% of their investments not preforming, and you were meeting with your Edward Jones guy, he will never suggest you invest in any under preforming fund.

So just remember to do the right thing and get an Education.

Quote from @Noah Bacon:

In last nights debate, Vice President Harris emphasized housing affordability, addressing the shortage of homes and proposing a plan to increase housing supply by 3 million units. She also highlighted her background and connection to first-time homebuyers, contrasting it with Trump’s real estate wealth. 

Harris proposed tax credits for builders, cutting red tape, and a $25,000 down payment assistance for first-time buyers. She also touched on the rising cost of property insurance due to climate change. Trump did not address housing as directly but has previously suggested cutting regulations and using federal land for new construction.

Sharing this because it could have a significant impact on the housing market in the near and long term. 

To read more, you can check out HousingWire's full article here: https://www.housingwire.com/articles/harris-touches-on-housi...

 Most people will not do just the simplest research, the US builds just under 1.5 Million Housing units (SF, MF and Apartment) so she wants to drive this down to 750,000 + -  per year, does not look like great progress to me. 

JY Lim, I have been in this game for 20 years, it can be hard to find Multi Family in the MLS, most of us get a list of out of the area investors and direct market to them, also there are a couple of local wholesalers who come across Multi family (they do the work for you)

Many are brought up at the local REI meetings.

Just had some local investors pick up a couple of Duplexes with Subject 2 from a seller moving out of State, was not listed in the MLS

Quote from @Michael Newman:

Jy - I am also watching the Tyler area but for MTRs for nurses. For the properties that are listed for a longer time, It seems that a lot of them are over priced for the neighborhoods they are in.

I live close to Tyler and my wife is an agent for the Longview area. Unfortunately she doesn't have access to the GTAR MLS, but we are constantly driving the area searching for possible investments.

btw there is a local REI group that meets monthly. A lot of knowledgeable locals in there. No fees or any of that junk, just people meeting for coffee and showing off their projects. It's under "IMPACT Lindale" on Facebook, I think.

Yes there are two IMPACT groups in East Texas, IMPACT Lindale/Tyler and IMPACT Longview

 The Lindale Tyler group typically meets the first Tuesday of the Month at Brisket Love just North of I-20 on 849 near Hideaway, they also have a Saturday breakfast and Investment Property tour once a Month on a Saturday.

The Longview group meets the 2nd Monday near the Longview Airport (South Longview).

Both IMPACT's have a Facebook presents in Groups and also on Meetup com

@Bini Teklehaimanot, it can be a challenge to find Sub 2 deals from a wholesaler, because many wholesalers do not know this process and how to negotiate with the seller to set up with a Sub 2.

I have found that the best Sub 2 deals is to create your own marketing plan to go directly to the seller, this can be a home owner, an accidental investor or just a tired landlord.

I go into detail on marketing in my book and my website, you can message me for more information.

Show your closing attorney or escrow officer this, they need to do their homework and know this is happening everywhere else, yes creative financing can be tough in Blue States   below is a copy of a HUD1 which is a Federal Form - see line 503

@Account Closed, I cover those risk and more when I am working with clients and investors, this is about knowing the deal, what to do to prevent issues from coming up and know what to do if something pop's up.

Disclosures can be a great asset when doing any kind of Real Estate deal.

I am just glad you are not in the Health Care Industry if you are that concerned about the risk.

By the way I was the one who posted the letter from a crazy ex-wife, we handled it well, did not go into foreclosure.

Quote from @Andrew Postell:

@Alex Byder sorry I didn't catch this sooner.  @Caleb Christopher thanks for finding this and responding on it.  If you are local to Dallas we have several real estate groups that network here and usually there's several people who are writing "sub to" stuff locally.  @Roger Paschal is a good example.  He's got all the forms, knows all the rules, etc.  I recognize several title companies above and Inika Vance at Texas Secure Title and Martin Garcia at Magnolia Title are also good resources.  There's tons of stuff here if you ever want to get plugged in.  Thanks!

 Thank you Andrew, I just sent Alex a PM for a link to my website where he can get the Sub 2 Documents

Quote from @Rick A.:

omgggggg

 Rick - lol, I dated my wife 7 years to wait the Crazy out.. lol 

Married 31 years this week... 

I tell her her replacement has not been born yet.. ha ha

Quote from @Account Closed:

Quote from @Roger Paschal:

When working Subject 2 deals it is very important to make sure everyone is on the same page.

In this case the crazy ex wife called the mortgage company and told them that her husband sold the house but agreed to keep the loan in place.

Just do everything you can to stay away from crazy people, when you are interviewing the sellers make sure you talk to both husband and wife.

This can be real hard to fix once the can of worms are open.

But, but, but, the Sub To "Community" assures everyone that doesn't happen. ;=)

Bummer.

I have never heard anyone in the sub 2 community every say there are no crazy people out there, I have been doing subject to's for over 15 years and this is what I tell everyone to be aware of spouses that are not on the same page.