Posted by Scott Brallier on April 01, 2002 at 06:27:00:
Yes, It sounds like we’ve both had the frustration of trying to get something intelligent done through banks/Lenders. There have been communication problems. I’m talking to them on the phone to get it clear before sending the money and sending a letter, but sometimes they don’t know what to do with it so they just put it in escrow until they can figure it out, and I can call to get it right.
4 Subject2- Get the Deed Questions - Posted by Brian, WI
Posted by Brian, WI on March 30, 2002 at 12:43:50:
In December 2001, I owned 3 rooming houses. Today I own one.
That is the extent of my RE investing and am now wanting to get into different avenues of RE investing, so I went to Convention and can’t wait until next years!!!
Anyway I bought the “Get The Deed” materials(all of them), mainly because it was about buying “pretty houses” and I like that having been in the “rooming house business” you can understand why, and have some questions since there seems to be a lot of talk here lately about “Subject too” deals.
Are “Subject too” and “Get the Deed” the same? Regardless of who’s program you bought, if you are doing “subject too” deals, are you ALWAYS “getting the deed”?
Other then my rooming houses, I really am new to RE investing so I guess I’m a “newbie”. With that some people say I shouldn’t be doing “subject too” deals, because I should have a cash reserve should a house stay empty for any length of time because once I do the deal, it’s mine! I agree and I do have a large reserve due to now only having 1 rooming house, so would doing “subject too” deals still be out of my ballpark being a newbie?
There really aren’t many “rent-to-own” or “lease-to-own” houses in my area that I’ve seen, so I would think I have a wide open market. So, should I then run a test ad for a “rent-to-own” house just to see what kind of response I get? If it isn’t that great, I guess I should look at a different way of RE investing then?
If I do get a good response, any suggestions(books, courses) for selling on a Lease Option? The above course states it’s the ABC’s of BUYING “Subject too” so there isn’t a lot of mention of actually doing the Lease Option part of it.
Thanks
Brian,WI
Re: 4 Subject2- Get the Deed Questions - Posted by Scott Brallier
Posted by Scott Brallier on March 30, 2002 at 18:14:54:
Brian,
get the deed and “Subject to” are the same thing. It means you are getting the deed subject to the existing financing.
I am an advocate of being prepared to make some payments and when you got the option money from your buyer or cash from the seller to take the deed, use that money to pay two or three payments ahead to the mortgage company. Mr Landlord reccommends having 5%- 10% of your total property values in reserve. (1 mil in property value = $50k to 100k reserve. Pay a couple of payments ahead and count that in your reserve. You should be able to withstand a pretty big slowdown.
When I didn’t know any better and was running ads in the paper for rent-to -own, I was the only one there. Now they are all over the place. I had investors calling me “great ad! how’s that work?” Now that they are fighting for those buyers reading the paper and I stick only to signs to sell on L/O. I don’t place any ads for selling.
Abc’s is coming out with a L/O course, I liked David Finkel’s selling plan on L/O and plan to get his course for that. Its not very complex and people generally knock down your door to L/O a house if you’re flexible and creative in getting them in there and the house is in halfway decent shape.
Hope that helps, good investing - Scott
Re: 4 Subject2- Get the Deed Questions - Posted by Brent_IL
Posted by Brent_IL on April 01, 2002 at 01:20:29:
Scott,
It’s my understanding that banks will credit any additional payments you make to the loan principal If the next payment is not received on the due date the loan is in default.
Do you send your bank a cover letter explaining what you’re doing so they get it right? Have you had any miscommunications?