L/O vs Subto/CFD
John,
I have just come across this site and have seen some of your posts and the course you have for sale. I am interested but I always try to verify that a course is worth it's price by researching and watching the comments of others about it.
I just did my first deal as a test of whether or not I could really do something. Bought a foreclosure, fixed it up a bit, sat on it too long and if I had sold, would've broke even. Ended up L/P'ing and should net 18k/24k if exercised the 1/2 year. So that worked out for me.
However, your Sub2/CFD has me intrigued. Can you tell me something to convince me that your course/method is the way to go?
Thanks!
noslenj123,
Glad to meet you.
Pretty simple to do. The course is 150 bucks.
You get 24/7 email to ask me questions and I will answer your questions.
We have a members only website were the Subject To members share information and free downloads of forms and information as it becomes available.
You get my cell number in case you need help that can't wait, like when you are in a house closing a deal and a question comes up that you need help with.
Every time I think about all this for $150 dollars, I should raise the price of the course. How many deals do you have to do to get your money back?
Read the reviews on my course, you have read some of my posts it is your decision but you will not be dissapointed.
Lease Options when you buy do not give you ownership of the property the first time your seller gets an IRS lien placed on them and it attaches to the house you just sold or leased with an option you will see why it is important to get the deed.
John $Cash$ Locke
Thanks John,
It's exactly the things like the little tidbit you gave me in your response that make me want to buy your course. So now I will. Your comment about liens that can be placed by the original owner while you have L/O's their property are the tips one needs to know.
I will probably be let go from my current job in about 4 months. I have that long to figure out how to make living in Real Estate Investing. Wish me luck!
Joel
John,
Don't mean to sound like the one who knows everything, cause I certainly don't, but can't you circumvent that whole scenario?
>>Lease Options when you buy do not give
>>you ownership of the property the first
>>time your seller gets an IRS lien placed on
>>them and it attaches to the house you
>>just sold or leased with an option you will
>>see why it is important to get the deed.
If you have the seller execute a deed to be held in escrow until the deal closes or you pass on the option to purchase, then they don’t have the deed either. And also, can't you have an independent third party disburse the payments? You as the buyer make out a check to the third party, i.e. title company, or an attorney, and they pay the lender, taxes, insurance, exc.? This is some of the information I've read on how to get around that problem with lease options. What do you think of that?
Cheers,
Nick
Nick,
Glad to meet you.
I believe I was the first one on any message board to recommend using a Loan Servicing Company to disburse funds in creative real estate transactions. Or third party protection, they collect your buyers payments and disburse to the lender. At the end of the year they send out interest statements to your buyer, thus eliminating some of the tedious accounting paperwork that you will have to do, so you can concentrate on buying and selling houses. They can also hold the Deed in escrow for you until your buyer re-finances.
I will say this about the Lease Option method if the IRS checks who is on title of the property you are leasing and it is the person you are leasing from even with an option guess who is going to win and get their money. If your buyer has a lein or encumbrance placed on him it transfers to the property. I would rather not test in court who really owns the property under the Lease Option method of investing should a problem arise. You also cannot convice me that by keeping the lease separate from the option will give you an easy eviction method, even the course writers say do no mention this in court.
With the Subject To method you get the deed in your entity's name, you are the owner of the property so no liens or encumbrances attach to the property unless they are against you or your entity.
Just my views but you can check with the IRS about what I said, they can give you their view about what determines the ownership of a property.
John $Cash$ Locke
Howdy fellow REI,
Great to see that you are in the game and that you have made you're first deal.
John's Sub2 course is based upon experience, this makes it's value alone worth the $150.00, now add John's coaching and it makes it under priced.
I have been teaching REI for years and I will tell you the price is only $150.00. Should be more like $389.00 without coaching.
I am not trying to sell John's stuff, but I will tell you he is very under priced.
Just a little hint, when you buy investment RE you make your profit when you purchase it, not at the sale.
You may have not made a fast cash deal, this time, but you will if you persist and you educate.
Have a great day,
John Michael
John,
Thank you for your kind words.
You are absolutely correct about the price of the course, I will be raising the price the first of the year, this project started out as a instead of retiring why not share your success and knowledge with others. It has become more than a full time effort on my part. I did not realize what the response rate would be on my course, overwhelming to say the least.
We will need to add to our small staff, just John Marias (jfmlv) and me at present. John is a real research Guru, if it is out there he can find it.
John $Cash$ Locke
John,
Thanks for your input. I guess I didn't really understand what "Subject To" purchases where. I just read another article on another REI websight that explains it a little. So, instead of title remaining in the name of the seller, it literally gets transferred to me, and I just pick up making payments on their existing obligations for the property. Right? That does make a little more sense.
I guess the trick is that the seller who would agree to these terms are by nature a little more motivated to get rid of their property. Is that also an acurate assesment?
Do you use both Lease Options and Subject To deals? Are those the main ways you aquire property? Or just Subject To?
Sorry to ask so many questions. I've done quite a bit of reading, and I feel that I am dangerous enough to actually buy something, but maybe not smart enough to know exactly what I'm doing, you know?
Cheers,
Nick
John, another thought. Do you ever do anything about the seller's equity when buying Subject To?
Also, I just read your article here on TCI about Subject to deals, and you seem to like reselling those properties instead of renting them, is that correct? I know it gives you less management headaches, but there are downsides to that too. You don't get capital appreciation, and you have to be concerned about foreclosures instead of evictions. What are your thoughts on that?
Thanks,
Nick
re4me (John Michael),
Thanks for the advice. I am going to order JL's course today along with a couple of others I have found on this site. I'm trying to supercharge my learning during December as my current job (contractor) is up at the end of March. By then I need to have proved to myself that I can make a living at REI. My goal is at least one property in the first quarter where I make money going in, have cash flow and the promise of money on the way out.
John $Cash$ Locke,
I hope you still have copies of your course ready to ship. I'm gonna need it
Joel
Dear noslenj123,
I have no doubt you will be vary please with the outcome.
Keep us all advised on your investing success.
John Michael
can you register a lease option on the property title thus protecting your position if the IRS was to try and put a lien on the property
ub_nice2002,
Glad to meet you.
The Deed is still in the owners name, so you could register the Lease Option but the IRS lien would have to be released before you would exercise your option unless you wanted to pay the lien.
Just remember the Deed is the control of the property, whoever has the Deed is the owner of the property.
Welcome on board this board, nice try but no gold ring this time. Keep on posting looking forward to hearing from you.
John $Cash$ Locke
Hello John,
I think I am looking at buying your course too, for 150.00 it seems well worth it.
However, I have paid out for much for courses and extra matterial that I will need to close a deal to get it. LOL
Anyway, I have a deal tomorrow that I feel will do just that. I am not sure now just what way to go with this.
I have a very motivated flexible seller, who will go with about anything I want.
It is a 2/1 Home completely new carpet and paint, plus a new kitchen.
It has a mortgage with a loan balance of 42000 He is letting me have it for the loan balance and take over payments.
I am wondering if I shouldnt do a subject to deal. Ofcourse, I am not sure on how to do that.
I already have a possible tenant buyer lined up too. Once I do this deal John lol I can afford your course which is very affordable.
However, if I could get some pre tips on this I will certainly appreciate it but I understand if you cant do that.
I like the idea of doing a subject to, it seems to me it protects me the best.
However, if I am un able to learn or figure out how to accomplish the subject to, I will probably do a Lease Option like for 5 years.
Anyway.... I am looking forward to any tips or advice you might could give to a soon to be pre student
Mark
MarkB,
Subject To Deals are not difficult, but you have to know what your are doing to start out with in structuring the deal.
Since you have a highly motivated seller then this would be pretty much a lay down deal.
If you order my course you can go to our password protected web site the forms you need are downloadable in blank and filled out to guide you.
Plus I will walk you through the deal.
Your selling the property in my opinion is the wrong way to go, I use Contract for Deed, more money up front and a much better chance your Buyer will re-finance.
However you decide to take title to this property, you should either have someone walk you through the deal, it is not something that a single post can accomplish and cover all aspects.
John $Cash$ Locke
Is John Locke still around, havent been here for that long but was wondering were the man is. ???