All Forum Posts by: Troy Michaels

im confused about something. ok, lets say you do a subject to on a pre foreclosure, and get the deed. where im confused is, normally, in a subject to, you just take over the payments and pay the remaining loan balance. in the video, they say you can negotiate a discounted payoff. are they saying that the discounted payoff is negotiated DURING the preforeclosure, as soon as you get the deed, etc. or is it part of the EXIT strategy? in other words, when you sell the house, thats when you negotiate a discount on the payoff? and if so, how long would you hang on to the house before doing this, because seems like when you pull the house out of foreclosure, the bank has no incentive to negotiate a discount.

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i called a closing attorney. they gave me a basic overview of what they do............

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What generally are the basics of what a title company does in a wholesale transaction? lets assume a deal between a private homeowner and a wholesaler. no double close, use of land trust, etc.

1. what paperwork does the title company get? the original purchase contract and the assignment contract between the wholesaler and the end buyer?

2. does the title company, if they regularly do assignment deals, know to give you the difference as your assignment fee between the two contracts?

3. do you HAVE to show up at closing. ( again, assuming a transaction between private seller and a wholesaler.

4. who pays for the title check,( search for liens) you are the end buyer?

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Thanx for the responses.........

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Got a quick question about wholesaling and taxes. When wholesaling, are you issued a 1099 or anything from the hud 1 form or do you just make sure that you take care of the taxes on your own according to how you are set up ( llc, corporation, etc.).......

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Where can i find a example power of attorney to be able to inquire into the loan status of a homeowner's loan. im putting together a subject to deal. thanx

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i know there are good websites, but are there any useful apps that can be used in conjunction with wholesaling???

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Originally posted by hakchinoy:

Originally posted by Troy Michaels:

bottom line, if i dont do the land contract, no deal, because the whole deal is dependant on me renting to section 8 as my exit strategy.

IMHO, it sounds like you already have the basis for your counter offer.

Yet, I'd probably counter with an offer with multiple options. One of the choices would be the land contract at the agreed upon purchase price, and another one would be a lease-option--with a subleasing clause--with a lower strike price for the option (and 100% of the rent being credited towards the purchase). I'd probably also include a choice featuring an AITD, and an all-cash offer (for a much lower price).

However, if that kind of offer isn't your style, then you could counter with your original offer.

im countering with either the land contract or the lease option, with the subleasing clause. the owner KNOWS i wanna lease the unit, so a sublease clause shouldnt be a problem. if i agree to the lease or purchase option, im gonna try to get more favorable terms also.

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Originally posted by Don Konipol:

The reason the seller does not want to do owner financing is that you are putting no money down. The seller is probably aware that if you default on the payments he would have to utilize the services of an attorney to initiate foreclosure. If you as borrower/owner decided to fight the foreclosure you could get a temporary restraining order for 60-90 days from a county judge usually with just a promissory bond. Once the 60-90 days runs outs the formal foreclosure proceedings with notifications, etc. would have to be done again. By this time the borrower would have control of the property for 5-6 months without having paid a dime.

If the borrower really wanted to keep the game going he would then file a bankruptcy the morning of the foreclosure sale. This would give him an automatic 45 day stay. At the end of 45 days the borrower asks for an 45 day extension to come up with your workout plan, usually automatically granted by the bankruptcy court. Once the 45 additional days end, the seller/lender would have to intiate foreclosure proceedingns all over again. Meanwhile, the borrower is still in total control of the property.

The borrower can then wait again to the day before the foreclosure sale, and sell the property to another entity, and have that entity declare bankruptcy. The most proficient scammers are able to keep control of property for 18 months or more without ever making a payment!

maybe so, but i have bought property before with no money down, on land contracts. bottom line, if i dont do the land contract, no deal, because the whole deal is dependant on me renting to section 8 as my exit strategy.

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Ok, i thought about how to structure this deal if i can get the land contract. The sale price is $110,000. The down payment is $10,000 like i said. The contract will state these terms, which are approximate figures just for this post:

12 monthly payments of $1,000, of which $300 will be applied toward the down payment, commencing on such and such date, the balance of $6400 due on the 12th month (can put in the exact month here). the balance of $100,000 will be financed at whatever percentage rate and amortozied over 30 years, starting at the 13th month (can put exact month here) anyway, thats the gist of what im trying to do.

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All Forum Posts by: Troy Michaels

Troy Michaels has started 38 posts and replied 113 times.

Post: Preforeclosure and subject to discount with bank

Post: Basics of a title company closing?

Post: Basics of a title company closing?

Post: Wholesaling and Tax Preparation

Post: Wholesaling and Tax Preparation

Post: Power of attorney to inquire into loan

Post: Are there any good real estate apps that are recommended for wholesalers?

Post: Owner finance problem

Post: Owner finance problem

Post: Owner finance problem