Don’t Spend for a House Needing Work When Buying Subject-to!

Success in a real estate business depends on good transactional engineering. You must be able to handle any seller situation and choose the best exit strategy. Whenever you buy a house subject-to that needs a lot of work, don’t ever hand out money. The only time we consider doing so is when you want to help the seller move out of the house!

In this episode, learn how to approach sellers who: have private loans, are behind on payments and are in foreclosure, and those who want cash to cover the work that needs to be done in their house.

Hear how to buy a subject-to in bankruptcy. Discover how to approach banks in regard to the reinstatement of loans for prospects with homes in foreclosure. We discuss how to buy as-is on terms and sell on terms. Be aware of the risks and responsibilities of trustees on land trusts.

Finally, gain skills on how to do settings and action plans in Mojo to follow up with leads.

Mentioned Resources:

• Propstream
• Zillow
• Mojo
• 1800gotjunk
• Ron LeGrand
• Craigslist
• InvestorTitletoolbox

In this episode we covered:

• 00:00:00 – Start-up and market update
• 00:04:06 – How to buy a subject-to in bankruptcy converted from chapter 13 to chapter 7
• 00:08:00 – How to approach a seller with a USDA loan, $30K behind on payments
• 00:10:44 – How to transition into a lease-option when seller doesn’t want to do a subject-to
• 00:12:29 – Whether deferring or re-amortizing a loan is contingent in pre-foreclosures and about having pushbacks with the gatekeepers of loan processors
• 00:16:20 – How to approach a seller in pre-foreclosure that wants to sell for what they owe and owe $60K
• 00:19:21 – About a wholesale deal out-of-state: how to market two houses on a property when one has somebody living in it and the other is full of junk.
• 00:27:00 – Settings and action plans in Mojo to follow up with leads
• 00:31:13 – A deal in which seller is asking for $265K, has a mortgage of $135K, and according to Propstream has two liens totaling $12K
• 00:38:00 – A client’s words of wisdom
• 00:42:08 – About Propstream
• 00:43:06 – A client’s successful way to approach banks in regards to reinstatement of loans for prospects with homes in foreclosure
• 00:47:25 – About an LLC with rentals in it under the same loan; whether if a commercial lender is more prone to call the loan due than a private lender
• 00:50:22 – A seller concerned if they can lease out on a VA loan
• 00:51:11 – Update on client’s ten-packet cash deal
• 00:58:23 – About a client buying as-is on terms and selling on terms
• 01:12:44 – How to approach a seller concerned about the sale of their house, with subject-to and a carryback, affecting their income qualification; they want cash for their house that needs work and has black mold
• 01:20:10 – About another client with a similar situation previous one
• 01:22:57 – Most effective way to get script info out of people responding to ads
• 01:23:58 – Risks and responsibilities of trustees on land trusts
• 01:25:01 – A client working out strategies to make his CRM system get lots of leads coming in
• 01:29:27 –Jeff’s insight about negotiating back to sellers with subject-to as far as what is owed and lenders being more flexible with terms in regards to houses in forbearance and a large short-sale market
• 01:32:11 – Wrap-up

About Blair:

Blair is the founder and creator of Dealbot, a motivated seller lead generation company. He has managed nearly $2mm in marketing spend and generated over 100,000 motivated seller leads. He also buys and sells houses himself in the Winston-Salem and Charlotte, NC markets. In the past year, he has acquired nearly $3mm in cash flowing rental properties with zero money out of his pocket.

Multimedia:

• Youtube
• Apple Podcasts
• Google Play
• Facebook

Thank you for listening!