All Forum Posts by: Victor Umeh

@Jack Hurdle I will have a foreclosure coming up on the market in Grovetown in about a month.  5 bedroom corner lot.  If you're interested, DM your email and can let you know when it's ready and on the market.

@Bill Walston how does "buying the beneficial interest" work?

@Kenneth Mooney yes after the repairs.  I'm not sure on the years for the loan.  Haven't seen the full statement but I plan to pay off early.  Would probably dedicate the whole rental payment ($900/month) to paying the mortgage just to get it paid off.  I work fulltime as well so could use this as a tax write-off to offset my corporate income and flips I'm doing elsewhere in Augusta.

@Kenneth Mooney ARV is about $100k. Remaining balance is $50k and paying $6k + $350 closing to get deal done. All in for about $56.5k and has a current tenant on a month to month lease paying $750/month. The loan payment is $509/month. Once the tenant moves out which might be soon will have to replace the roof, flooring, do some paint and interior upgrades. Should run me about $12-15k for the updates. Will take the rent to $900/month after that though.

Thanks guys for all your feedback!

@Marc Winter the property is currently held by trust and I think what you described is definitely doable so thanks for the insight.  I have a lawyer that will be drawing up all the paperwork so I will speak with him about this mater.

I will also follow-up with him about naming seller as additional insured. It was my understanding that per the mortgage paperwork the trust would have to be listed on their and not just my LLC as holders of the policy but I can verify with lawyer.

@Kenneth Mooney I am trying to make sure that doesn't happen.  Over the longterm it is definitely a great deal, I just don't have the capital to purchase out right at the moment so was hoping to cash flow for at least 2 years then pay balance from there and look to flip or refinance once I've completed the payoff.

Hey BP Family,

I am an investor in the Augusta, GA area with 1 property currently. I'm looking to purchase another property and have come across a Subject 2 opportunity to take over the remaining loan balance from a Wholesaler and in return pay him a fee of $6k.  That said, this will be my first time doing a Subject 2 Deal and have done some research on it and have a pretty good understanding of what it entails but just wanted to know if anyone had some experience with it that could tell me somethings to look out for that I might be overlooking. There is already a current tenant in the rental doing month to month rent which covers the $500/month home loan + additional $250.  In addition I have seen the balance sheet for the loan and know how much is left for the balance. The closing will be done by an attorney and we are planning to close within the week. I spoke to the Wholesaler I am acquiring the deal from and told him the contract must include:

1. Me being added to the deed of the property

2. Having a clause where the mortgage owner is unable to use property on his taxes for write-offs

3. My payments are going directly to mortgage loan holder

4. I will purchase home loan insurance and add the current owner as an additional insured under my insurance

5. My address will be the forwarding address for escrow statements.

Aside from all this, is there anything i'm overlooking?

I agree with Frank.  Think it really depends on what you are looking to do and your skill in project management.  I am currently working a rehab in the Hephzibah, GA area and I have a general contractor i'm using for the work. My background is engineering and commercial construction so in future I think I will take on the project management myself.  This project was just a bit hard to do that with because it was so extensive and it was my first in the area so wanted to not bite off more than I can chew. I would say if you are doubtful of your capabilities to handle it I would start with just using a GC then as you get more comfortable you can work your way into just bidding out the trades yourself.

I’m currently working on my 1st property renovation and 1st time working with my Contractor. Thus far he has done quality work but some of his billing practices seem to be questionable at best. That said, we have a contract in place that allowed for some allowances for certain activities like flowers/beautification in the front lawn of $1000. My question is should i ask to see receipts for his expenses as it relates to my allowances within my contract? What level of transparency should i expect from my contractor as is relates to such things? Am I entitled to all receipts associated with my project? i.e. if he sub-contracts out the electrical work, should I see the receipt/statement from the sub-contractor prior to paying him for the work? For instance certain activities have exact prices but some he made estimates and set as “allowances” for him not to exceed with the expectation of saving money where possible.

@Michael B. & @Jaysen Medhurst really sound advice. I’m in the same boat as @Happy Sohi  Thanks for sharing. Hoping to post first property photos here soon.