All Forum Posts by: Zach Howard

@Zach Howard I am working on a how-to book on Creative Financing now (I am the author of BP's book on Mid Term Rentals) because when I was teaching myself I was frustrated at the lack of clear instruction. I struggle with podcasts because they show a slice but not usually a start-to-finish how-to and you could invest countless hours (like I did) listening to many podcasts to piece things together. While Pace Morby seems to know his stuff, he puts out incredibly long videos and I didn't have time to sort through all that fluff & didn't want to pay 8k to be in his course. 

My best recommendation would be to find someone who is doing something similar to what you hope to do in the space and have a coaching call or two. If you have a focused plan and prepared questions you can learn a lot in an hour. 

People I admire in the space: Grace Gudenkauf (also a BP author) or Jenn & Joe Fave. 

@Zach Howard

the wholesale hotline podcast was where i learned seller finance.  some hype but also a lot of good information.

also remember: seller finance of a paid off asset, lower risk.  subject to, higher risk.

There is a video (free on YouTube) by Attorney Jeff Watson titled "How To Do a Subject To And Do It Right" that I highly recommend.

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@Ken M.

Where and how can I most efficiently learn about subto in full detail? Any recommended reading materials, please. 

Thanks. 

Ken I beleive you can hire for sub to training thats why he is always saying sub to is legal if you know how.. Sub to is just very risky for the seller as denoted in this thread.. for you the buyer very little risk unless like Ken mentions you start to fib on applications etc.

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Quote from @Zach Howard:

@Ken M.

Where and how can I most efficiently learn about subto in full detail? Any recommended reading materials, please. 

Thanks. 

 If you are not well capitalized, meaning you can not pay off the loan if called, stay away from sub to. 

 Yes, I've heard this before and therefore, for the time being, if I get involved in any sub to deals, I'll keep them within the 200k limit (as I can pay this off if push comes to shove).

However, I would still like to learn more about sub to, any guidance concerning reading materials would be greatly appreciated. 

My concern is that you seem to be out of country. Subto is unpredictable in how it proceeds and 6 months down the road it could flare up. There really isn't a safe, secure way for someone to protect their interests. Even if buying a property Subto in GA and you live in FL, you could miss something and the whole deal does a "crash and burn". How available are you to fly into the state the property is in and deal with it? Are you a US citizen who understands how things work legally in the USA? 

Quote from @Zach Howard:

@Ken M.

Where and how can I most efficiently learn about subto in full detail? Any recommended reading materials, please. 

Thanks. 

 If you are not well capitalized, meaning you can not pay off the loan if called, stay away from sub to. 

@Zach Howard the winter months are also the worst time to sell a property!

So, yes, it can be the best time to buy as the sellers listing during the winter are often the most motivated.

Technically, Sub-To is legal, but the way some "gurus" teach it, I have problems with it. The Due On Sale clause was added I think in the 1980s because of "sub-to" deals. Sub-to has been around for a very long time. In many cases, it weakens the lender's position as they did not underwrite the buyer and an owner-occupant tends to pay better than non-owner-occupants. Some gurus tell practicioners of sub-to to hide transaction from the lender by saying the lender doesn't care as long as the payments are being made. That's simply not true. For instance, I served as an expert witness in a case where a property was transferred to a new owner sub-to. The new owner did not make the mortgage payments and the seller had no idea until they were served foreclosure paperwork. The seller had a military contractor job with security clearance. The trashing of his credit threatened his job. Most seller's in a sub-to don't understand the risk they are taking and most lenders have concerns over the overall portfolio quality ratings which has an impact on their cost of funds. Sub to us a bigger deal than most people realize. It's not illegal provided you're dislosing it to all parties and not trying to actively hid it. Now, getting around the Due on Sale might be as easy as doing a Contract for Deed or a Purchase Option instead of Sub-to. In those instances, the title doesn't change hands, thus, the Due on Sale isn't triggered. I hope that helps. Good luck in your investment journey.