$CASH$, how many DOS's have you come across?
$CASH$ man,
The subject to's are VERY interesting to me, but the Due on Sale clause down right scares me.. This can cause a lot of headaches (for everyone) if invoked...
From your experience, what percentage of DOS's do you come across with all of your transactions? Are there states that don't allow subject2's? What about Arizona?
bginvestor,
Glad to meet you.
Arizona is a great investing area I probably have done 200+ deals there, 300+ in Nevada, I really do not count Ohio, Florida, Utah, California etc., because I bought and sold in these areas on my fishing trips, these deals just kept me in worm money.
Never had a DOS clause called ever. So I am no expert on this, what I am an expert in is how to buy and sell properties so the DOS clause is not envoked.
Could it happen yes, however if you take the correct precautions then it really is a mute point.
Any form of investing has its risks, but I believe that the rewards doing 'Subject To' deals far out weight the risks involved.
Usually when the DOS is called it is because the investor became careless with his paperwork and did not pay attention to proper business proceedures.
If you fall behind in keeping the loan current this is the biggest 'flagg' you can send to the lender, most cases (which is about three) I have heard of the loan being called was because the mortage payments were not made on time period.
This should set the record straight as far as I am concerned with the DOS clause, Rewards vs Risk is in any business venture I know of.
John $Cash$ Locke
Hey $Cash$,
I always enjoy reading your posts. In fact, I'm real close to buying your sub2 course. I've been through Ron LeGrands cash flow system, but I'm hopeful yours is packed full of stuff to fill in some questions and other stuff that I don't already know.
Anyway, as a follow-up to the poster's original question, I've read on several occasions that Countrywide Mortgage calls all of their loans due when they sniff a sub2 deal out and that one should avoid their loans. Have you heard this? Also, (here comes the part where I try to score a little freebie education) the part that has always elluded me is not how to get the deed, but rather how the heck one convinces buyers to shell out thousands down and buy the house via owner financing with all of the required disclosures. I mean, even if my credit/circumstances were such that I couldn't get a loan, I'd be a bit troubled giving someone thousands down to buy a house that they openly tell me contains a DOS clause and that if it's called due, I'm hosed. The disclosure/CYA letter is a must to avoid being sued to my knowledge. I realize they could formally assume through qualification as an option if called due, but perhaps not. What am I missing on how to sell that part of the package?
Eric,
Country Wide is just another lender to me, they don't have people sitting at the Court House sifting through records to see if it is a Subject To deal. Just make sure the payments are made on time, I cannot stress this enough.
The second part of your question concerns my 'memorized scripted presentation' that I and my students use to get the Deed.
I can only tell you that people do turn over their deeds to you, my course explains in detail how to do this.
Not that I am unwilling to share but it would not be fair to those that have made an investment in my manual to give it away in a post.
John $Cash$ Locke
$CASH$,
I'll assume many of your deals have been in the Phoenix area. So you would probably be in a position to say how the market is for the newbie. So, what do you think?
I have gotten your course and am on the second time through. I'm ready to start marketing but still feel uncomfortable with the documents (details of filling them out), which I'm trying to understand now. Once done, I'm ready with all the spare time that I have to get going.
I have one deal under my belt, but that was with buying with my own money and conv. loan and selling on Lease/Purchase. I don't want to use much of my own money going forward. I love your sub2 stuff. Can't wait to start talking to people. Tx a bunch!
Joel (the other one)
Joel, the other one,
I can walk you through the paperwork when you get a deal, have you gone to a title company to get what they use? Just get the O&A signed then the rest will come easy.
The title companies in your area are more than happy to give you what paperwork is state specific and what they will accept.
John $Cash$ Locke
Joel,
Almost forgot PHX is a super market for a new person or old person to do deals.
$Cash$
Awesome!
I need to see the title company this week anyway. I'll check it out. Voice mail, web site and cards this week. Marketing starting next. The fence is getting short....
Joel (the other one)
[quote]
On 2003-01-07 21:15, JohnLocke wrote:
Not that I am unwilling to share but it would not be fair to those that have made an investment in my manual to give it away in a post.
------------------------------------------------------
hey John....how bout a contest for one of your manuals?....that would be a late Christmas present for us newbies
cmon101,
Let me think about that one, I would have to check with our Research Guru jfmlv1950, to see if he can think of something that would be very interesting.
John $Cash$ Locke
how bout a raffle?
list five charites and let everyone who is participating in the raffle pick their favorite charity...the most voted charity gets the pot...then raffle off a chance to win your subto manual for a dollar a ticket
and you get a tax deduction..and one lucky newbie gets a chance to live his dreams
plus make it just for members and that way we can get more guests to join our wonderful forum