I would like to get your thoughts on whether doing a Wrap VS. a contract for deed. I am in GA buying a house then I will refi out after we fix it up. I am deciding whether to sell as a wrap or do contract for deed. Curious what your thoughts are. I know TX is not contract for deed friendly. Thanks in advance for any help.
I’m currently focusing on acquiring free and clear houses with seller financing, then selling with owner financing. Would I just need a standard trec 1-4 with a seller financing addendum to get the ball rolling with the seller? I watched the “front funding” video and in there you mention using a 60-day option period to find a buyer and 3-day deadline for your seller to go to the closing table after you inform them you are ready to close. How much “if any” option money do you typically put down for 60 days to shop for a buyer? Also, is the 3-day deadline for the seller to close something I would just add to the trec contract in special provisions? Or, is this paperwork something I need to get from Mr. Scott Horn? If this is something I need to call and speak to him about, I will… I’m not afraid to sound like an ass! I will learn how to do this strategy by any means necessary!!!
Hi Grant, I have a question and it isn’t about the subject matter of tonight. If your unable to get to this question, I understand. But I will give it a shot. There is a lady named [REDACTED] who lives in her mothers house. The mother died in 2015. There is no Will nor was Probate done. The bank did not know the mother had passed. Foreclosure proceedings started. I reached out to her several weeks in advance. She finally responded to me two days before the auction. So I went to her and that is where I discovered it was not her house per se. I told her that I was not a lawyer and was not advising her as such, but that she may want to seek counsel and stop the foreclosure by bankruptcy. So she did. Lawyer told her since she is the heir, that it would stop it temporarily. So, she did that. She was to stay in contact with me so that I could continue helping her etc. She blew me off then. Well, three months later, she has contacted me again. Says she is losing it again and wants me to buy it and sell it back to her. She can not get her own financing. Well, being that the ARV is $320K and the pay off is $96K and the reinstatement is $37K, it is something that I thought I would be willing to do. Although I have always been told to not let the previous owner stay. Is this always true?
I would prefer to take this “subject to” and wrap it back to her and possibly “sell the note” to someone else. What is your advise on this? Is that even possible?
What do I need to know regarding her financial situation? She said her mom got a crazy loan back in 2007 to remodel and things snowballed. She does have a full time job. Do I need to know her income? How do I know how much to make the note for? I know I need good terms or a good price. Correct?
Should I ABSOLUTELY NOT do a wrap with her and just give her some equity and send her off? IF she is willing. She was pretty adamant about staying there. Family house for over 40 years.
Something that has crossed my mind is, her husband (he has no dealings with this property and I think they married fairly recently), is disabled. He cannot work. If she stays in this house, and fails to make her monthly payment, is it possible that because he is disabled, they could legally become squatters and I have trouble evicting them? I have a neighbor down the street. She owned a house for years. She was 600 pounds! Bank took two to three years to successfully foreclose on her because of this issue! So that alarmed me and makes me think.
I’ve been trying to ask you the same question for the past 3 weeks and either YouTube cuts out in the middle of your answer, a link gets dropped from my email, and/or Google cut’s off my question. If you think you don’t have enough information is answer the question below, that’s because something else got lost in this message. Ha! In case the link and the attachment doesn’t make it to you, here are the numbers from the document: * Original Principal Amount: $120,341.00 * Unpaid Principal Amount: $120,524.73 * New Principal Amount: $117,026.60 * New Money (Cap): $0.00 * Loan origination date: 3/26/2008 * Interest: 5.92% * Term: 360 months. How do you compute the new current principal amount on this loan modification? How did the “Unpaid Principal Amount” go up above the “Original Principal Amount”? Because the “New Principal Amount” is less than the “Unpaid Principal Amount”, does that mean there was some kind of forgiveness from the bank? Or what?
I watched the GTMS and I’m still a little bit confused as to why it’s a good idea to do sub2 wraps during the downturn. If we take over on seller’s payments when the downturn is happening and then find an end buyer at the bottom of the downturn, how will our buyer’s monthly payment be more than our underlying Lien payments if they’re buying the property for way less? Are we mostly on the difference in interest payments to make up for this?
How long do you wait for a house to be on the market before you start lowering the price? Also, do you have an average days on market for you owner financed houses?
Ran into a guy last week (who knows you, Grant), and he actually wholesales SF deals – gets a portion of the down pmt and of the monthly spread. (Hires Horne.) Thoughts on that biz model?
Grant, you mention a tax video that explains how to find accurate property taxes. I can’t seem to find the one that deep dives on that topic. Whats the name of the video!??
I heard you say you put a property under contract and then listed it on the MLS. Maybe I misunderstood. My understanding is that we can’t list a property on the MLS that we just have under contract.
If someone dies and is the only person on the mortgage. Only heirs are two sons. They want to sell and can’t afford the payments. If the bank knows that the home owner is dead can u buy sub to?
If you do a wrap at the downturn that you just explained and market keeps dipping and foreclose on them, then it would be hard to do it for a profit right?