All Forum Posts by: Shantel James

Quote from @Crystal H. Weston:

Yes, I am in his Multifamily Movement course right now. His is one of the best real estate investment courses out there. His MFM course focuses on first time investors transitioning from renting or a single family to their first multifamily, typically two to four units. His other course, Buy the Block, is for more seasoned investors. He is extremely knowledgeable, a great teacher, and an ethical investor. I highly recommend him. Thx to his teachings, I sold my non-performing trophy multifamily and am in the process of 1031 exchanging it for money-making rentals. His lessons have definitely helped me level up and the community is awesome -- extremely supportive.

@Crystal H. Weston I just watched his webinar and am interested in the course. Do you still feel the same about him and the course? Have you successfully used his teachings? Is it worth the investment (time and money)? Thanks!

@Crystal H. Weston I just watched his webinar and am interested in the course. Do you still feel the same about him and the course?  Have you successfully used his teachings? Is it worth the investment (time and money)? Thanks!

What happens when you offer a discounted cash offer but a balance still remains on the mortgage?  Is that even possible?  For example, you have a motivated seller that owes $110K on the home.  He needs to sell because can't afford payments, had a lot of bad things happen during the year (in the house), and has found a job out of state to get away/start over and just wants out (whatever the reason, he is motivated). A fair offer due to market value and repairs ends up being $90K (leaving a $20K difference).  The seller is motivated enough to carry the $20K, but can the owner/seller accept this offer?  What would it look like?  Does this ever really happen?  Is this even a real deal? 

Just trying to work out offers/deal strategies and don't want to miss any that could be viable possibilities.  Thanks in advance...

Thanks Tan Mehedi

Thanks James Wise Great tip w example. If relationship w buyer is going well and I'm good w continuing to hold the note, could I offer to reset the terms? If so, could that be written in as well? Would that be something along the lines of an option to extend the terms or something similar? Thanks!

Good Morn, BP! For creatively financed deals, I've heard of videotaping the closing/contract signing as a means of protection from sellers coming back later saying they didn't understand the proceedings or was duped in an effort to regain their properties (especially after they've been fixed up, appreciated, or you've helped greatly improve their financial situation). Is this common? Legal? Off putting to sellers? What are your thoughts? Thanks!

For owner financing, can you put in the contract that the buyer has try to refi within a certain timeframe? If so, how would that look and how to enforce? Thanks!

Thanks @david lecko

Subject 2s are legal. Pairing them w lease options is where an issue arises because there are strict guidelines/deadlines for lease-options (LO) in particular long-term LOs.

Hello, Everyone. I am a newbie from in the Dallas/Fort Worth area (Euless/HEB). I've been firming up my knowledge base by listening to the BP podcasts, reading the forums, watching youtube videos, and reading.  Now, I'm ready to get my feet wet.  I’m looking to invest/acquire properties via sub 2 and owner-finance deals (first choice) or rent the properties (second choice). The focus is on cash flow and creating multiple profit centers per deal (e.g. down payments, monthly payment difference, sales price difference). My current plan and associated questions are as follow:

Finding/Qualifying Properties

Plan: To find motivated sellers, the plan is to driving for dollars, old MLS listings (90+ days), FSBO, Craigslist, networking, county records (taxes, absentee owners, etc).

Question(s):

1) Which of these strategies are the most value-added regarding producing leads and/or getting offers accepted?

2) What are the best scripts/questions to ask for discovering sellers needs/wants that would help to solve their issues and make offers more attractive?

3) What is best criteria when vetting properties? (e.g. title reports, loan balance, etc)

4) Would prefer to do no money down (of course), but what is reasonable amount to have ready to offer up as enticement for owner?

Finding/Qualifying Buyers (Renters)

Plan: Use signs, networking, social media, and internet to advertise to buyers (renters) that can help them where banks/other avenues can’t and promote inventory

Question(s):

1)What is best criteria to use when vetting buyers (or renters)? (e.g. credit scores/history, rental history, references, income, employment, background checks, etc)

Contracts/Insurance

Plan: Use attorney/title company for contracts and insurance

Question(s):

• 1)Anyone know of any DFW attorneys (familiar w/ sub 2s)?
• 2)Any recommendations for title/insurance for sub2s (sub2 friendly)? Have been reading that some title companies will not provide insurance for sub2 deals. What is recourse?

Exit Strategies

Plan:

1) Have enough in reserves to pay note in event no buyer/renter to protect the seller

2) Have buyers refi w/ 3-5 yrs (if not sooner)

3) I refi w/ PML/Local Bank (will build rapport/relationship so can get better terms) if DOS activated

Question(s):

• 1)What is recommended time to keep a sub2 owner-financed?
• 2)If want buyers to the have ability to refi in 3-5 yrs (if not sooner), what are the best qualities to look for in the buyer? (e.g. credit scores, etc)
• 3)To ensure refi occurs/is attempted w/in certain timeframe, can it be written in contracts that buyer will do so by certain date?
• 4)Who are the best lenders for refinancing owner-financed deals for buyers w/ “bruised” credit?

Miscellaneous/ Lagniappe

Saw this a previous post but there was no answer: What happens to the sub2 deal if the owner dies before the terms have been fully met? E.g. It’s year 3 of a 5 year deal, and the owner dies? What becomes of the deal? How will bank handle? What happens to buyer/renter?

I’m eager to get started, so your insight is greatly appreciated.  Please feel free to add anything I may have missed.

Also, I would love to partner w/ an investor experienced in sub 2 transactions and would split the deals we work together. Let me know if interested and I look forward to your responses.

Thanks!