Since I spend most of the time on this blog talking about news items and how they effect real estate investors rather than focusing on the latest investing strategies like everybody else, you may not realize that I actually have a very extensive background in real estate investing. In fact, I authored three courses (don’t worry - I’m not going to sell them now) that thousands of people all over the United States (and even internationally) have acquired.
One of these courses - called “The Hard Core Subject-To Investing System” - is a real goldmine of information, and I want to give you that information at no cost. Note that I’ve sold this product for $795 to many people, and it’s gotten consistently great reviews.
Why am I giving it to you at no cost? The reason is simple - I want you to know that I value you and do not perceive you to be a “wallet with an email address” like many of the big-time gurus out there. Yes, I do sometimes publicize events at which you can make purchases from reputable experts. (This helps to pay the bills for running this website.) But rest assured that I will also give you the very best content possible at every opportunity.
That’s why I’m offering a free webinar during the time between Christmas and New Years that will address the notion of Subject-To Investing in 2009 and beyond. Here’s why I’m doing this:
- With the increase in foreclosures, there are (and will continue to be) far more opportunities for you to use creative strategies for acquiring distressed properties - and Subject-To is the “Mercedes” of such creative methods
- A lot has changed about Subject-To Investing in the last few years, not the least of which is the government’s (federal, state and local) opinion about it. Subject-to is virtually illegal in a couple of places in the United States and has been restricted in some other places. But most places, you can still use it just like you always would have. You need to know the difference.
- A lot of your subject-to deals will involve acquiring properties from investors who themselves acquired their property via subject-to transactions. This type of transaction brings some benefits and complications and is something you’re certain to run into, so I’ll give you the best ideas on how to handle it
There are a lot of reasons to be excited about this webinar. Here they are:
- It’s absolutely free. You won’t pay a dime to hear it, or to get the associated documents and contracts.
- No selling or pitching of any sort. 100% pure content.
- You’ll learn exactly what you need to know about Subject-To investing. If you’re a total newbie, you’ll learn what you need. If you’ve done 1,000 deals, you’ll still learn some things you’ve never known.
- You’ll get my famed “Monster Purchase and Sale Agreement” for buying properties via Subject-To
- I’ll help you understand the difference between deals that make sense and those that don’t
- You’ll learn how to truly acquire real estate at little to no cost and with no credit involved at all
There are a lot more benefits to getting on this webinar. However, I’m not even accepting registrations yet (we have not yet set the exact date). The reason I’m bringing this to your attention is as follows:
I would really appreciate if you’d tell me what you’d like to know about Subject-To Investing and creative real estate buying strategies so that I can be sure to make this event as valuable as possible for you. Just enter your questions/comments in the space below and I’ll do my very best to address those questions during the presentation.
Next week, I’ll give you the exact date and time for this very special presentation. And remember - this will be 100% pure content with no fluff, filler or sales talk. I’m doing it just as my way of offering sincere thanks to you for being a subscriber to the RealEstate.BryanEllis.com Newsletter.
So take a moment now and give me your best questions and comments about Subject-To and creative real estate strategies, and in turn I’ll do all I can to give you the best FREE education possible.
Thank you for reading RealEstate.BryanEllis.com!
SECURE & CONFIDENTIAL
32 Comments So Far»
Takl about getting paid to do a deed in lieu
Bryan … I just want to say “thank you”. You ARE appreciated.
Thank you, Linda - that really means a lot to me! — Bryan Ellis
Could you address the specific situation in our
State of Florida and explain in detail how you would
work the deals using Subject To?
Thank you!
Mr. Sándor R. Ochoa
Lic. Real Estate Broker
Miami, Florida
I would like to see a step by step process with nothing left out. Walk us through a deal and what to EXACTLY do!
Bryan,
Just like Linda said, thank you! You are trully appreciated. I look forward to reading your emails everyday. Your information and unbiased thoughts are trully valuable expecially to us new investors. Thanks again and a Very Merry Christmas to you and your family.
Thank you, Robert - I really appreciate your kind words! — Bryan Ellis
Please talk about subject to in texas .
What do we do with houses that are overleveraged now due to the drop in house values
Bryan….THANKS for all you do…and for being different from all the rest…
If you would cover a bit on Pennsylvania, that would be appreciated…
Merry Christmas to you and yours!
Would love to know the best way to find Subject To candidates that aren’t thousands of dollars upside down - or at least how to acquire them with VERY LITTLE money down. And, of course, the fastest way to market them.
I am a Realtor in Arizona and sincerely interested (and have been studying this particular method for months now) in investing - with no credit / low down.
Merry Christmas!!
Bryan,
Can you acquire property using a “Subject to” and short sale it?
Also what happens if the person you “bought” the property from via subject to files bankruptcy after you were deeded the property? Is there a way to protect the deal from unravelling?
Looking forward to the webinar! A lot of these Sub2 deals will need some kind of rehab or updates. You can get the property with no money down, but what options are available to fund the repairs?
Bryan,
Thank you again for all that you do. I would like to know the step-by-step of subject-to in California. Thanks again!
Brian,
You truely are an asset to the industry. Thank you.
Please discuss ways to get out of a sub 2 deal thats gone bad. Example: tenent/buyer declares BK, seller declares bk, can’t find tenent, etc
I just picked up a property “Subject To” the existing mortgage. The payments are $1400/month. The principal balance is $199,500. The latest comps are between: High $167,300 Low $136,000. Clearly upside down. I took the property for 5 main reasons: 1.The payments are very reasonable for the area. 2. The mortgage is current (No back payments!) 3. He turned it over to me for $0 dollars. 4. If necessary, he’s agreed to allow me to negotiate a Loan Modification to lower interest rate, payments, and principal balance. If that’s the best way to ultimately lead to selling the property and satisfying his mortgage. 5. It’s a very nice property. I might move my family in.(smile)
My question is really 2 part. If I elect to assign the property to another investor/agent. Thereby putting them in my position. Having full beneficial interest in the Trust. What do you recommended as a safeguard in case the new buyer (assignee) starts going into default? Messing up my original agreement with my seller. Even though we have the Assignment disclosure in the Purchase and Sale Agreement. Thereby releasing us of all obligations to the seller…. Because we made “first contact”. They,(the sellers) still tend to try and pull you back into the deal anyway. And make you responsible. Even though contractually they have no legal grounds. It’s still a headache. How can I draw up an agreement or an addendum of some sort to get back into the deal and fix it if I choose to do so?
By the way to anyone out there just getting started. I’ve been doing “Subject To” deals for over 7 years in the Phoenix area. And it’s all because of Brian’s training and expertise in this area. I’ve sold several properties out the trust without a hitch. When I first heard Brian teach this subject. It was truly “real estate revelation” Thanks a million Brian!
Bryan thank you for all your help.
I would like to see discussed your opinions and any possible legal ramifications on assigning the Sub2 contract to either another investor or the end user/homebuyer. In others words Wholesaling the Subject 2 deal.
Merry Christmas
when taking title subject to does the lender have knowledge of this transaction? also as the optioner does the lender do a credit check?
so what part does the title company have? I haven’t done one yet but would like to. It seems the easiest to do instead of an outright purchase…truly no money down, I like that. Thank you for all the information that you have shares with us, I truly appreciate this!
…what to do if lender exercises DOS and if you have already put the property under contract with a buyer as a Lease Option or land Contract for example
Thanks Bryan
Brian, Look forward to the class over the holiday!! Any internet tips, tips on doing video would be greatly appreciated. Rocky
Bryan, I appreciate the fact that you are not always pitching something to sell. But when you do it is useful. Thanks. I would like to know what properties make good candidates for a “subject to”. Do you have a spreadsheet that could help us rookies? You are doing a great job with the investment tips and tricks.
Jack
I am looking forward to your webinar. I am new to this business and it is very refreshing to find someone who is willing and so very capable of presenting as much info as you do, all for free. Thank you for myslef and others who I am sure also appreciate what you do
Thank you, Robert - I really appreciate your very kind words! — Bryan Ellis
Talk about the due on sale clause and how to avoid it.
What is the best type of marketing to aquire subject too’s, direct mail, signs, etc. What is the best list to market to, you don’t want fixer uppers? You want pretty houses? How does the insuance work? Do you need to get new insurance or can you use what is already there? What happens if the rate is adjustable? Do you only do fixed rate mortgages? How to avoid the due on sale clause? How do you hold title?
Bryan…Thanks for all you do. You are the “go to” guy! Can you mention the states that “subject to”s are illegal? I wouldn’t be surprised if Maryland is one of them, since they have some of the more stringent laws.
I am looking to earn some cash from from investing in real estate. Because I do not have any cash at the time and my credit is poor currently what can I do to earn some money from real state. Is it possible to find a property to purchase or wholesale and do I need an investor who has the money to fund such a deal. If so do you know of any that are willing to work with me on this? I am prepared to do the leg work on such a deal.
Carl
Most of the “Subject To” deals that I have run into needed some rehab. Could you suggest a few hard $ lenders that do loans in NYC based on the strength of the property rather than one’s credit or assets? Though I am mainly interested in NYC, I think a list of national lenders who fit the above criteria would be helpful.
Merry Xmas to you and your family Bryan. I met you at on of you Monster Websit workshops awhile back where there was another attendee with the same name as mine, and I want you to know that you are truely appreciated by this family.
Tom Williams
BRIAN, First, thanks for everything!!! Concerning sub-2’s, I’ve been trying to find some info on sub-2 that will work for me in my state. The BIG problem is simply that I can not use a Trust in Idaho. All the good courses that I’ve researched seem to use a Trust to do the deal. What would be my next option?
Thanks!
Don
Brian, thanks for your info. Please make further details on Subject-to transactions and forms to use. Thanks and God Bless.
i would like to clarefy the steps and creative ideas that make me sell apartment in uae and arrive to the target
thanks alot
Thank you Bryan for the News Letter you send daily to my email address. I really haven’t been reading your news letters until now and I am atonished to find such deep commitement from your loyal readers. I am very interested in your subject to stregies on how to buy properterties in the Michigan area. The comments that I read was very informative and I am grateful to have read them. I look forward to your class, but, have I miss it? Please reply so I can learn the fundalmentals of subject to deals. Thanks again.
I have been studying the Subject-To process ever since I saw the “We Buy Homes - Rent 2 Own Homes” sign in a town I was passing through that had a website and a phone number on it. It was a small town in my state of Missouri. I’ve been in the real estate market for a while now and also worked as a loan officer for a mortgage broker for a while. Here’s what I understand about the sub2 deals..
You find your seller who needs to get away from their mortgage payments, are moving out of state, motivated to sell quickly, whatever…
Analyze the marketability of the neighborhood, current payments, current rate on mortgage, conventional mortgage, arm, etc? (I have a friend who is an appraiser and can do Comp Searches) So find out the estimated appraised value and see if it would leave you with enough equity to be profitable.
Meet with your seller, while you’re there have them walk you through the home to show you any cosmetic repairs (if any) or damage that needs to be fixed, etc. Make your offer. If they accept, show them all of the forms including the Warranty Deed, Sales and Purchase Agreement, Power of Attorney, Disclosure Statements, Notices to the Lender and Insurance Company, etc. Even if they don’t accept immediately or need more time to think about it, leave all the forms and a business card for their review. Having that FOR SURE offer in front of them knowing they could accept it and get out from under those payments is just like having a cake in front of a fat kid.
After this meeting (or after they accept) I would run a title search to be sure that there are no encumbrances that would cloud the title. This search takes about two days, but provides you and the seller with the certainty of the ownership, status of the liens (mortgages and promissory notes), and gives us the exact legal description for creating a Warranty Deed.
Meet with the seller again, have them sign the Warranty Deed, Power of Attorney, etc. (all you need before the Title Search is the Purchase Agreement). Give the sellers a timeframe to move out and then take possession, pick through your “prequalified rent 2 own buyers” (who usually have $1,000 + to put DOWN) and match them with the house that fits… boom. Deal done.
Dustin - I’ll answer your questions so long as you understand I’m not licensed to give you any sort of professional advice, ok? Here goes:
NOW, HERE are my questions:
1) Insurance. Buy an additional policy? Add your name to the current homeowner’s as a Beneficiary? What to do?
I wrote a complete article to answer this question: Subject-To Transactions and Hazard Insurance
2) Property Taxes. Who pays them? In addition, MORTGAGE TAX INTEREST… who gets to claim it at on their tax returns?
The owner of the property is responsible for property taxes and all expenses related to the property. That means the investor, in normal subject-to transactions. — Bryan Ellis
3) Land Trust Agreement. I know that if the seller intends on buying a different home, you can provide the Land Trust Agreement showing you are making the payments. Would you be the trustee or the beneficiary of the Land Trust?
Actually the land trust has little to do with proving that payments are being made. Generally speaking you’ll need to show a contract that has transferred that obligation to the new owner. As to your land trust questions - you (or a business entity) will be the beneficiary, while some third part should be the trustee. — Bryan Ellis
I think I am almost ready to go land these deals. I definately have interested buyers already and a few possible interested sellers but first I need to be able to answer these questions for MY knowledge so that I can clearly understand the entire process and what steps need to be taken to complete a deal from beginning to end.
Sorry for the novel. Cheers Bryan!
No problem - enjoy! — Bryan Ellis
Fully understood about the legality of the advise! I certainly intend on having my attorney over-see all of the deals I make to ensure that I am fully protected in the matter. I also understand that Land Trusts provide some security to investors and it is wise to put all investment properties into a Land Trust if the state allows it, is this true?
Land trusts provide separation of assets and privacy, both of which are very valuable and desirable. — Bryan Ellis
Also, what about the mortgage interest? Obviously if the mortgage is still in the Seller’s name, they will be issued the 1098 Mortgage Ins to claim on their taxes. If you’re making those payments, shouldn’t you be able to claim that interest? (Maybe a question better answered by a CPA but I thought I’d get your insight.)
I can’t really give tax advice - that’s not my strong suit
— Bryan Ellis
Thanks again for all of your help! You’re work is truly appreciated.
It’s my pleasure! — Bryan Ellis
Bryan, thanks to your advice I just set up my first deal.
That’s great news - congratulations! — Bryan Ellis
I am meeting with the seller tomorrow to sign the Purchase Agreement once I have my attorney re-write your Monster Purchase Agreement. I just have 2 more questions and I will leave you the hell alone! LOL
1) Does your Monster Purchase Agreement include the Power of Attorney needed or should it be done separately?
Nope, that’s a separate document. — Bryan Ellis
2) Say I buy the home for $100,000 and then sell it to my Rent 2 Own buyer for $110,000 but it takes them 1 year to refinance into a traditional mortgage. Does the original Seller make more money in the end when they get cut a check at closing since obviously the mortgage payoff would be lower at the time of closing then it would have been at the signing of the Purchase Agreement. Can I pitch this to the Seller as a benefit of them doing the deal? Is my only profit here in the equity? How does that work?
Generally speaking, the seller won’t get any more money ever, unless your purchase agreement says differently. The increasing equity position you’ll accumulate over the next year accrues to your benefit, not the original owner’s. — Bryan Ellis
I just found out about this training is it possible to get this information now so that I can start using it?
Leave Comments Below»
Gravatar are enable in this blog, if you want a picture associated with your comments, register yourself a gravatar here