All Forum Posts by: Roger Paschal

 Quentin, build your knowledge, make sure all this is done correctly.

Banks rarely call the loan just because of the deed being transferred, something else triggers this, mostly because the investor decides education is not worth the money.

It can be because the Insurance was not done correctly, the seller does not understand the process, the Title Company does not know what to do so they call the Bank and make a mess out of the process and a few other factors,

If the investor is knowledgeable on what to say to the Bank if they call this is a fairly simple conversation to have. If the Investor does not disclose to the seller how this process works and the Bank calls them yes you will have a mess and may be hard to undo. 

A couple of years ago, I worked with an investor who never updated the contact information for the loan and the Bank call the seller (ex-wife), that day she was mad at her ex-husband and told the bank her ex allowed someone to steal their property from them and they got no money, she was kicked out of her house and there were strange people living there.

This could all have been avoided if the investor did this process correct.

Get educated, also I do not know your attorney but not many attorneys have the knowledge to do this process correctly. 

Roger D. Pachal

 It is not hard to convince a seller to let you make their payments if you know what to say and you know how this process works and they are motivated. 

Mike is correct, but there are exceptions, when I first learned about Subject to, my wife and I went to a week long seminar on Creative Financing about 17 years ago. Subject 2 was just one of many topics.

During that week I was calling some of my contacts every evening, flew back on a Saturday, and Sunday afternoon I had 4 Properties under contract using Subject to from a landlord who did not want to be in the business anymore. Referral from another Investor.

Marketing is the key, anyone looking to just have someone taking over the payments on their loan do not know to look for you, you have to have a marketing plan.

When I wrote my Book on Subject 2, marketing was a huge factor of what I wanted to share with others, there are many ways to market, but some people think the first area to look is a Foreclosure list, this is the worst way to find properties using Subject 2. I never look seriously at any property more than 90 days late on payments.

First of all, someone will need to make up all the past payments and other fees, at that point there may not be any equity at all and you are out of your cash reserves.

Second, the mortgage company (Servicer) may just be done with the loan, too many promises not kept by the home owner, there are more reasons that I go into further in my book and on my website and you can listen to a ton pf podcast by Pace Morby on YouTube. 

If I ever give money to a seller for any Equity, I get something in return, maybe it's paying it on a note over time, a lawn mower, car or boat, jetski or whatever I can turn into cash, I limit my cash out of pocket.

As with any Real Estate Investing (or any other business), knowledge is the key, when I decided I wanted to be a Real Estate Investor I knew I needed to get educated, I bought a ton of books (and read them!!!), hired a mentor, paid for classes and joined several REI groups in my area.

Then I took action.

I have seen many people come and go in this business and lose their shirts because they just did this wrong, decided they would rather pay for Starbucks, Netflix, drive expensive cars, go on vacation, watch 5 or 6 hours of TV EVERYDAY, eat out for every meal, sit around with their looser friends and drink beer and more - instead of getting to work, if you treat it as a hobby that is what you get.

Is anyone here going to the all day Subject to boot camp in Oklahoma City on June 18th, 2022 ?

https://www.realimpactevents.c...

To Pre-Register for the Event click this link:
https://www.realimpactevents.com/

What an incredibly special event we are bringing to you on March 12, 2022 at the Sheraton Arlington Hotel, 1500 Convention Center Dr, Arlington, TX. Please join us for a day with Pete Fortunato. Pete will be leaving the comfy confines of his Florida home to share with us, here in Texas, some of the knowledge and experiences he has had over the past 57 years of his real estate investing career. This will be a day you do not want to miss.

Want to Maximize Your REI Profits?
Here is just some of what you will learn from the Master of REI Deal Structuring:
• How to Think, Far Outside the Box
• Why Discomfort in Negotiations is a Positive for You
• How to Minimize Risks and Liability While Investing
• The Power of Real Estate Notes, their Cash Flow, and their Options
• Dozens of New and Innovative Ways of Creating Deals

In this full-day event, Pete will be presenting:
• Examples from over 57 years of investments and contract acquisitions
• The Core Values to Live by to Have a Consistent Deal Flow
• The Best Kinds of Real Estate Contracts to Acquire
• How to Minimize Risks and Liability While Investing

Reserve early to lock in your spot! Seats will fill quickly and you do not want to miss out! This will probably be your final chance to hear Peter Fortunato speak before he retires!

About the Speaker:
Pete Fortunato is one of the most dynamic and entertaining speakers in Real Estate Investing. He has used most every technique possible to acquire real property, including: master/sandwich leases; seller-financed notes; option contracts; equity sharing notes; exchange contracts; lease options; assignment of contracts; and many others.

Pete teaches that transactions, which you can be proud of result from carefully conceived goals and plans followed by purposeful actions and scrupulous documentation. Over the last 25 years, Pete has taught his techniques at seminars and real estate clubs. Pete Fortunato is one of the most respected Real Estate instructors in the USA. He is known for his clear and patient explanations of investment concepts and transactions.

Pete was the 2017 recipient of the “The Rohny Award” (aka “The Jim Rohn Award”) which is a lifetime achievement and mentorship award. It was established to honor individuals who have elevated the real estate investing profession with their outstanding leadership and willingness to share their knowledge and work with others.

The Price for this event is $299 and you can bring one Friend for only $99 more.

To Pre-Register for the Event click this link:
https://www.realimpactevents.com/

There is a group that meets once a Month called IMPACT Wichita Falls, this is run by Tim Lockhart a long time investor, should be able to find on Meetup or facebook

“Subject 2” - Subject to; the terms of the Agreement. In this case the agreement is the existing Mortgage, the sale is Subject to the existing mortgage staying in place, as is where is. The deed and ownership goes into the name.

Subject to is not illegal in any State, this is one of the most common types of Real Estate transactions in the World. But you must have knowledge on how this works and how to set up your insurance and how to transfer the deed.

With this always work with a professional, this is please work with a Title Company or Attorney who knows this process, it is not to where you take advantage of a seller, this is to help the seller when they have few options.