All Forum Posts by: Teresa M.

The subject to I'm attempting is to repair someone's credit in preforeclosure rather than letting the property go back to the bank. So...making up their missed payments, making their payments while we rehab the house, pay it off when we sell it, and pay the seller above and beyond the mortgage amount up to what the property was worth prior to the rehab. This is done all the time. I just wanted to make sure I had the paperwork correct. 

And by the way, the deed is transferred. And, no, that is not illegal.

In our state, it is required to have a builder's risk policy if the rehab is above $30,000 which is also when a GC needs to be involved. This would be $150,000 renovation. 

And, I'm actually not an inexperienced investor. We own one company for rehabs and one for new construction, however, I am not familiar with subject to but wanted to attempt to help someone in a bad position. 

Rather than insinuating, I'm trying to take advantage of someone, it would be far better to either not comment or ask clarifying questions.

Ok, so I've never done a subject to deal, so could someone explain it like I'm a super-smart kindergartener? :) lol

What are the contracts needed? 

Who's on the deed? 

Is it quick-claimed to me by the seller? 

How do I get permission to talk to the bank to MAKE SURE what they owe without a red flag?

Is there another way for the PML to be more secure than a 2nd position, as in...can you form an LLC or privacy trust you and your PML own together so we're on the deed together? Or are we on the deed?

Promissory note, yes...but how do we do the insurance as a loss payee? Is it a builder's risk policy they are on?

Anything else I'm missing? PLEASE share what you know and all the creative ways these can be structured! 

Thank you all so much in advance :) 

Hey guys, I would really like some advice on how to successfully challenge an appraisal...the guy was comparing my newly renovated property with gutted ones! I sent all of the MLS closed listings to the lender so she could see the pictures to confirm what I'm saying. What else can I do? I really want to get this done ASAP...I've been patient, easy to work with, have gotten all she's asked for right away...and we're still here. Thanks in advance!

I'm a fairly new investor with a lot of my cash tied up at the moment in properties. I was marketing every day looking for properties to purchase...but now with cash tied up and some PML's and HML's are on hold so buying isn't so easy. If you were in my shoes, what would you be focusing on in marketing your business? Thanks in advance:)

@Aaron Hollingshead our town is tiny, so I've been looking and reaching out all over the state for smaller banks...and credit unions, but maybe those won't work out. I guess we'll see. 

I have changed my approach...Instead of presenting what I have and leaving it at that, I'm asking, "What do I need to do to refinance this loan with you? What do I need to do to get better terms if you will refi it?" If I need to put a long term renter in there I will. I had thought about it but I wasn't super stoked to do that only to have someone move and say, "Sorry...I can't pay because of COVID-19. I've had some other investor friends have tenants take advantage of not being able to evict so they aren't paying even though they are able...so I'm a bit scared to do that. The downstairs will have long term tenants in there. They are moving in most likely in June.

I'm hoping to hear back from some lenders looking hard at the refi today or the beginning of the week. Thanks so much for your reply!:)

@Joseph M'Mwirichia thanks for your reply! We have considered that strongly. We have other properties on the market and most things are just sitting since this has happened. Two went on the market the middle of March :( We may end up doing just that. I just really wanted to keep it because of the cash flow with tourists here, I didn't want to pay capital gains, and I like the tax benefits from rentals...but I still may have to sell it...

@Rob Drum and @Stone Saathoff Thanks for your responses! I really appreciate you all taking the time to answer. Our beaches here are now open and so are the vacation rentals. Reservations are steadily coming in already.   I did talk to my PML about it but she was not open to changing the terms. I'm paying her $2500/mo and have been for a lot longer than I wanted to. It's eating up my profit really bad, so my big question for all of you guys more experienced than me is:

What should I do differently to mitigate my risks in case something unforeseen like this happens again in the future? I'm not super stoked about making the same mistakes twice:) 

Thanks @Caleb Heimsoth @Joseph Cacciapaglia @Andy Nathan @Steve Vaughan for taking the time to offer advice! I really appreciate it!

@Rob Drum

@Caleb Heimsoth Ah-gotcha. Makes sense. Thanks.

@Joseph Cacciapaglia Thanks for responding. Yes, there is a lot of equity created. PP: $235k Rehab:$55K ARV: $405k I had it appraised prior to purchase to make sure it was worth what I thought it would be and I was correct...but I don't know if the new appraisal will come back with that amount with all that is going on now. Thanks:)

@Andy Nathan here is a supposed list anyone can join. Some require a membership of an organization they support to get around other obvious requirments.   https://www.depositaccounts.co...