All Forum Posts by: Yoann Dorat

@Hunter Reed I've only heard of 3 cases of due-on-sale on a subto over thousands of deals and they were all with small community banks, it's very unlikely that you'll end up in this situation. 
They are usually triggered during an audit or if you change the insurance policy, that's why I usually recommend keeping the existing policy under the seller's name and adding your new policy on top. 

@Account Closed I know a few solid guys in NC i can connect you with

@Tabb Pitt I'm not part of the subto mentorship but over the years I got access to a lot of gurus "online training" and I have to admit... subto is the only one I've been impressed with. All the other ones are basic wholesaling &/or investing 101, how to pull a list, how to do coldcalling, what script, what contract etc... the only difference with youtube is that it's organized in an online library. 

But subto is very informative and you can tell that Pace Morby take the time and effort to build this course, it's regularly updated with new zoom recordings etc. 

That being said, it depends on where you're at in your journey, if you're just getting started it might be better to spend this money on marketing and get a few deals under your belt before spending any money on training. 

@Sean Dezoysahere are my thoughts on this strategy: 

30 days might be too soon, most wholesale contracts have provisions to extend for another 30 days, and I regularly see several extensions pushing the contracts to 60-90 days. If they were distressed 90 days ago, chances are they are even more motivated now. 

You can't get this "failed wholesale contracts" list from a list provider, so you would need to have a VA scrub manually through your emails or Off-market marketplaces to track those leads, which can be a daunting task but is doable.

I will pull the title to ensure the previous wholesaler didn't record a memorandum of interest on the property, as we see more and more of that. We have ways to get rid of those but it's time-consuming. 

Lastly, the previous guy probably left scars and your negotiation is not gonna be easy, I would come prepared with a credibility package, POF, and be ready to dump a large EMD.

I hope that's helpful ;) 

@Chad Keilen sounds good, feel free to reach out! I'll be happy to help

@Jordan Raetz I'm actively wholesaling in Southeast Michigan, feel free to reach out if I can help you in any way. 

Hey @Zach Fridrich, there are ways to buy properties with no money down but it's going to be very tough to pull this off on your first deal. Truth is you will most likely need capital to cover up fees, closing costs, and a few months of expenses at the bare minimum. 

It looks like you believe in your capacity at finding good off-market deals, if this is the case why don't you partner up with an experienced investor to take them down (one with credit, track record, and money)? Or you could wholesale the deals and stack up your profits to buy your first rental. 

@Mario D. I'm a wholesaler and I have flipped hundreds of properties so I can speak on both sides here. 
All the methods of acquisition listed above works, as long as you don't overextend yourself, pick one or 2 and be consistent for 6 to 12 months and you'll get results.

Then it gets down to your marketing budget, buying from wholesalers, agents or networking is free (someone else paid for that marketing) but you will pay a markup for this service, cold calling texting etc works but you have to commit time and go through a whole bunch of non-motivated sellers before you find a deal. Then you have PPC which is probably the most effective but you will have to come up with a min budget of $3000/month if you want to get some results. 

So bottom line is, whether it's equity, time, or money you have to trade something ;) 

Good luck
Yoann

@Niklas Hilmoe I'm not going to jump into the debate value of a Wholesaler vs Realtor as this has been fought over too many times in the forums. 

In regards to your main topic: I would do my best to avoid putting any cash upfront prior to closing, however, as a wholesaler, you're dealing with people in high financial distress and sometimes they won't be able to move before closing... simply because they can't afford it. We tried many different solutions over the years here are the 2 main options we provide within my company: 

Option1: Give your seller 7 days to move after closing, this will give plenty of time for the proceeds to clear the bank. But in some rare cases, it can backfire if the seller refuses to leave. So I would discuss that with your end buyer and let him decide if it's worth the risk. there's no cost in doing that so it's probably the best option for all parties involved.

Option2: I would never give a seller a lump sum of cash before closing (I'll be afraid they'll blow it off the same night) but we have a corporate account at U-haul and they can pick up a truck and get storage for up to 10 days free of charge (we take it out of our assignment fee). 

Hope this helps,
Yoann

Hey @Yoann Dorat thanks for your feedback. Would love to hear your favorite title company in Ohio.

Sorry for the late reply, we work with speedy title & escrow they are licensed in Michigan and Ohio.