All Forum Posts by: Anthony Greco

@Shawn Parsh

Yes basically it is as it sounds. Pop the roof off and build up!

Looking for advice on vetting properties that are good or bad candidates for doing a pop top on.

Is there an age limit to a home that you want to stay under when doing these?

Any big things that stand out quickly identifiable for when a home would be a bad candidate for a pop top rehab? Any feedback appreciated!

Quote from @Tom Gimer:

Sounds like people are winging this stuff and passing it off as expertise.

I've read so much in that past 24 hours I think I have interpreted some of the information wrong or have a few points mixed up on that.

Quote from @Veronica Grimes:

Hello Anthony. I'm a subto student as well as a creative Transaction Coordinator (TC). I first wanted to note that there a DLPOA should always be obtained when doing a subto transaction prior to or at closing. Also, did you provide the seller with disclosures indicating the due on sale clause could be enforced by the bank? It's not uncommon to see on smaller banks. There are other disclosures that should be provided to seller as well. I would advise having a creative TC always review your documentation to ensure that both parties are protected. I'll send you a direct message.

This is not an active deal just theory, but seller disclosure and acknowledgement would be provided in this example.

Quote from @David M.:

@Anthony Greco

How would taking Title with a different deed help?  The issue is with the Mortgage.

Where have you heard that subj-to purchases should hold the orig loan long term?  I've never seriously heard the strategy sold that way.

I think it may actually be a disclaimer of interest form or something along those lines... which is more so for title company to ensure that they have evidence the owner has no more financial interest in the property. That way they are not looking to the deceased owner for payoff info. I may be wrong on that though.

This stuff with long term holds is being pitched all over lately. I believe this is a big thing in the "Subto" community as well with Pace Morby. Search something along these lines on YouTube and I am sure you will be inundated with results.

Quote from @David M.:

@Anthony Greco

You really don't want the other person's loan "forever" as there are too many risks. "They" usually "sell" you on the "great" the financial benefits, but don't stress the risks and potential downfalls. For example, what if the person dies --- by whatever means? Your POA is now worthless. Oh, and you'll probably have a bunch of equity in the property. So, one would want to finance that out generally.

This is a great thing to point out. Although I believe a disclaimer deed is good for this scenario it still seems like it becomes a mess. I really want to find a way to justify sub2 as a longer term hold strategy but I have a really hard time doing so. To me it feels like it makes the most sense with a quick exit and less of one for a longer term play.

Quote from @David M.:

@Anthony Greco

This is sort of tough, and is pretty much one of the risks with subj-to...

Yeah, you should have gotten the POA up front... The simplest way to address this is just refinance. You really should be ready to do this when you went into this deal.

Did you have an exit strategy when going into this?  Usually, you want to refi shortly after closing so you aren't tied to your seller.

Can you work out a deal with the lender?

You probably don't want to, but can you sell?  At least you get the equity...

good luck.

 @David M.

This is not an active deal but more so theory and looking to see if there is alternatives to the use of a POA. I would ask why you would want to refi immediately with financing already in place as you lose majority of the benefits of buying sub2 in addition to obtaining a less than desirable rate in todays market.

Hi BP,

Does anyone have any suggestions or solutions to the following scenario? 

You close a deal sub2, the lender is a small family owned business and they decide to execute their due on sale clause upon discovery ownership of the property has transferred. 

Given the situation, is there any other alternatives that can be used other than a POA to allow you to negotiate remedies with the bank?

For example, let's say after speaking with the bank they agree that if the property is deeded back to the seller and put on a lease option or executory / land contract they will not call the loan due. Is there a way to do all of this without having to get the seller again involved with the transaction they wanted to walk away from in the first place? Even worse, if the seller becomes at any point unreachable?

It seems like POA is ideal here but then the argument some may make of not acting in the sellers best interest it could lead to an issue when technically becoming the sellers "Agent" with a POA.

Even if a durable POA may state "The Agent may perform the actions listed above even if such actions result in a direct or
indirect benefit to Agent." I am not sure if that would be enough to be completely held harmless.

Would love to see some opinions and thoughts on this.

Hi BP,

I have not been involved much with deals involving seller financing and would love to ask for some insight from those who have. When structuring a seller finance deal and terms are set for the following example:

Seller wants to make $110k for the home

You can pay $100k but decide if the seller finances with X terms they can make $110k (or more depending on how you want to spin it).

The loan has a 30 year length with a 5 year balloon.

You flip this property and then exit within 6 months. 

Wouldn't the seller be pissed at this point since you are not paying the full 5 years they would not accrue all the interest and actually net the number they had expected?

It feels like I may be missing an important piece to this strategy and would appreciate any insight on this. I know that you can structure the deal to where all interest is due upon payment, but is that what a lot of people are doing in their seller finance deals?

Hi BP!

Wondering what everyone typically does as best practice for flips ranging from low to high end when it comes to countertops and sourcing.

The prefab option due to its cost seem to make a lot of sense for galley kitchens or kitchens with very standard configurations.

For kitchens with L shapes and the like, do prefab quartz counters still make sense with a seam joining the prefab pieces together or does full slab then make more sense for those jobs? Any insight and tips are appreciated!

Quote from @William Graham:

Quote from @Anthony Greco:

Hi BP Rehabbers!

I have been looking through and trying to find the best vendors etc to find the best deals for my flips and just seeing an enormous amount of options not only local but remote. Any tips on sorting through all the "noise" to get the best deal to increase the bottom line/stay in budget while maintaining high quality product? For example: I am currently looking for a company to use for all my cabinets, and there are a million websites and it seems like there is no shortage of local brick and mortar stores ready to sell. Any tips are appreciated!

 My wife is a Kitchen designer and she recommends you take into account what price point you're looking at for these flips. Most flippers she knows are using the ready to assemble cabinets because they are inexpensive and some cabinet manufacturing companies offer nice, modern and trendy finishes. If installed correctly, these ready to assemble cabinets can be made to look semi-custom(which are a higher price point). She suggests working with a showroom that offers these type of cabinets and that have designers that know how to think outside the box to get you a great finished look. It involves some legwork but will be worth it in the end.

 Thanks for the insight! This confirms what I have been thinking about the RTA cabinets being the best bet. I think my biggest hurdle at this point is cataloging the vast amount of vendors / showrooms etc to find one that has the best price for the best product! I never realized how many stores offer and carry cabinetry until now LOL!