Buy Subject-to, Fix and Flip!

Today more than ever is an excellent opportunity for
transactional engineers to buy subject-to. There are many exit
strategies to work your deals, but today’s focus is on fixing and
selling. Buy a house for as little as possible, make small fixes,
and then sell. These could be starter homes, which are
experiencing high demand. These deals don’t demand much work, and
the houses sell quickly!


In this episode, hear about three deals Blair and Jeff are
working on with different exit strategies. Learn how to buy
subject-to, fix and flip, and how to get an $80K payday just for
writing out a check to bring a loan current. Discover the
difference between finding a buyer for a house versus finding a
house for a buyer.


Finally, hear how wholesaling works in Illinois, how to deal with
wrecked houses that have been rejected for short sales, how to
deal with eviction processes and LLCs in Iowa, and the importance
of having rental comps when doing terms.


 Mentioned Resources:


       Rentome


       Craigslist


       Zillow


       Propstream


       Mojo 


In this episode we covered:


00:00:00 – Start-up and market update

00:04:36 – How to structure a deal in which a seller has
their three-bedroom house listed with an agent for $119k, getting
$2k a month, will take $110 and doesn’t want terms

00:10:25 – About wholesaling in Illinois

00:11:16 – How to approach a deal in which seller is selling
their house in Texas for $50K, there is nothing owed, seller is
willing to do terms, and it is difficult to find rental comps

00:14:24 – Whether there is a deal for a small, wrecked house
that has been rejected for a short sale, owes $40k deed in lieu,
a balloon of $12K in 2036, ARV $82 and $285 payments

00:22:54 – About a wholesale deal and consequences from
drawing a line in the sand with deals are under $40K

00:26:34 – Process when buying a property that has been
bought on terms with a private lender, about the eviction process
and LLCs in Iowa

00:31:27 – How to set up a land trust

00:32:13 – Finding a buyer for a house versus finding a house
for a buyer and about screening buyers

00:35:08 – Filling out the standard purchase and sales
agreement for an owner-finance deal to do a wholesale

00:36:32 – Meaning of “homeowner’s taxes and insurance being
in escrow” and about taking over HELOC

00:41:42 – How to approach a lawyer about what documents are
needed to close a bread-and-butter deal

00:44:12 – Blair and Jeff’s business update; about deals they
are working on with instructional ways to “skin a cat

00:45:18 – Lead 1 – How to buy subject-to and get a tenant to
buy the house from us at $120K

00:48:15 – Lead 2 – How to buy subject-to, then fix and flip

00:52:00 – Lead 3 - About a client-partner deal; a terms deal
with a lease option tenant-buyer coming in for $12k down and a
$400 a month cash flow

00:55:00 – About contract at close ratio

00:57:46 – How to fill a contract of a deal in which seller
that has a $50K lien

00:58:30 – Advice for whoever comes across a deal and has to
write a check for $11 grand for back payments and $10 grand for
rehab in order to make $30/80K dollars but can’t afford to do so

01:00:40 – 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:


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Thank you for listening!