Jul 19, 2019
FAR 266 Seth Williams, REI Tipster
Opening:
Today we are being joined by Seth Williams of REI Tipster. Seth is a land investor and has a compelling argument for investing simply land. Land can create income as you flip it and passive income as you sell with owner financing. There is a world of possibility awaiting you as you dive in to this topic. Our conversation with him is coming up shortly.
But I also have an extended set of questions about Subject-To purchasing so I’m going to jump right in and address this topic.
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Announcements:
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- The FAN is here!
- Would you like to invest in the Flipping America projects across the country? Coming soon you will be able to for as little as $100. That’s right, Flipping America is partnering with Ground Floor Funding to create a crowd-funded platform where you can invest in the deals we are doing here. The fund will pay out a 8% preferred rate of return and can go as high as 16%. You can make money with me, the Flipping America Guy.
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- Want a quick analytical tool to tell you how strong a potential fix and flip deal is? Download the Property Grade app. You answer 10 simple questions about the property and the app instantly tells you what you can expect to make, your return on investment, your return on cash, and then the program gives the project a letter grade using the proprietary Flipping America Investment Property Grade algorithm.
Special Guest: Seth Williams, REI Tipster
Your Questions: Send emails to questions@rogerblankenship.com
- From Kay in Atlanta, I have a few questions about Subject 2 and I am hopeful that you can assist me.
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- My partner Kathy P... spoke with a potential client which we plan to meet up with on Monday. We will like to proceed with a subject 2.
- 1) The owner divorced and was awared the home. The ex-wife did a quit deed so the husband has a limited warranty deed in his name. But the ex-wife's name is on the loan.
- The husband was given 1 yr as of November 2018 get her name off the loan. The home is heading into forclosure which they do not want to happen.
- A)Is there paperwork we can have the ex-wife sign to protect ourselves, having her acknowledging that she is aware we are taking over pmt. And her name will stay on the loan until the ex- husband assumes or refinance the loan? How do we protect ourselves?
- B) How do we take ownership on the warranty deed? Do we put in our company name? Do we keep the owner's name c/o our company name. Do we put deed in out personal names? Do we put deed in a land trust?
- C ) Getting insurance on the property. What step do we have to take for home insurance since the owner policy will only be good for 30 days after the transfer. I hope that you can assist us with our questions.
Great Questions:
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- Is this going into the August foreclosure sale? If so you have time, but you need to move quickly.
- Do you have a real estate attorney? You need one who is accustomed to dealing with investors and familiar with the Subject-To process. Craig Halperin is a friend and he can help if you don’t already have one.
- Meet with the man and write down everything in plain English you are agreeing too. Craig will translate that into a formal contract you can sign at closing. You’ll need to be prepared to pay him for the closing costs.
- Do you know whether the ex-wife is in the mood to cooperate? If she will,you have until the end of October to sell the property unless she is willing to agree in writing to extend the deadline. I’ll be surprised if she agrees to that - she probably wants out. But if she doesn’t need to buy a home right now, she could possibly be incentivized to extend (i.e. small monthly payment or something).
- He will not be able to re-finance the loan once he has turned it over to you.
- Once the property is in your name you may be able to re-finance into your name, depending on your credit and other qualifications.
- Take possession in your company name.
- Get insurance based on your intended use of the property. Rental and flips get different policies. Your insurance professional will guide you. Cancel the homeowner’s insurance as soon as you can. Provide on-going proof of insurance to the lender so they don’t do a force placed policy.
- Be careful what you say to the lender.
- 9. I cover sub-to in my Ultimate Course. It takes about 30 days to get that far in the course. That’s if you watch one 10-min video every day. You can use a land trust but they are somewhat over-rated in terms of protecting you from the Due Upon Sale Clause.
- Call Question: James from Rochester NY. “I’m a roofer and I want to buy a couple of your houses in Toledo and Saginaw, but I also want to know if you are planning to get more of these. I’m coming into some money this summer and I want to buy about 40.”
Comment Line calls and Questions
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Motivational Thoughts for the day
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“If you’re not making mistakes, then you’re not doing anything. I’m positive that a doer makes mistakes.” -John Wooden
Tags: real estate, real estate investing, real estate investments, real estate education, flipping houses, Roger Blankenship, Flipping America,