Is Buying houses "Subject To" Illegal? Real Estate Investing Training Video No Money Down Technique

http://www.localmentor.com Colorado real estate investing mentor Michael Jake - is subject to illegal? buying houses subject to is a common no money down technique - it does violate the due on sale clause in most mortgages/deeds of trust, but still a very common and widely used by advanced investors. for more colorado real estate investing training go to http://www.localmentor.com

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Education

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• subject to
• sub 2
• michael jake
• localmentor
• local mentor
• mentor
• coach

[energyfinance]

Hello Michael:

I really enjoy cold calling AND I understanding concept of 'subject to'.

Sir, if you will share here: What are the ways you identify owners who may want to sell?

Are you going after them, or, are you placing some sort of "I buy houses" ads out there? (meaning: newspaper, sign posts, internet)

I think that there must be many ways to identify and connect with owners who are wanting to sell, and I am wondering if you can share something substantial here.

Thanks,

Warren C.

[localmentor]

@energyfinance - enjoy cold calling? sick! ;) You can find people actively selling on craigslist and FSBO sites, any property for sale websites (google to find dozens of them) and/or you can go after those likely to need to sell subject to (low equity). I target owners based on when they bought it, how much its paid down (time of ownership) to get people in a narrow window of "if they sell now, they'll luckily break even". SOME of those people will need to sell quick. use direct mail

[TheDestroyer1219]

hey mark heres a scenario please tell me if this is possible?

lets say that there is a property that was worth 600.000 thousand 3 years ago and now in this market is worth 350.000. if that owner is about to foreclose on that property can i come in do a subjet to, pay off his late payments, then take ownership of that property, then when the market goes up again can i sell that property for a profit to my self? is that possible and legal?

thanks budd.

[localmentor]

@TheDestroyer1219 - can you, YES, would you want to?... if they bought it for 600k and they owe around that and it's worth 350k now, the ONLY reason to do that would be for CASH FLOW monthly till the market recovers. NOT Likely you can even remotely cover the debt service with a rent payment, let alone cash flow it. Even if you could, it's soooo upside down there's no point in it. Short Sale it or turn it over to an agent to short sale it and make an offer on it that way.

[matrixwithin]

So when your working with an agent do you get tired of telling them that its not illegal?

[localmentor]

I personally don't get Sub2 leads from agents. I give some presentations in my local market and I usually get that objection.  I'll ask them for the page, chapter and verse of the code that spells that out. That usually ends it.

[energyfinance]

I meant to say " CAN facilitate" below.

[energyfinance]

I meant to say " CAN facilitate" blow.

[energyfinance]

continued from below:

And there will always be owners of homes that need or want to move on, get out, to sell.

IF I, as a principle, call facilitate a good transaction, then I am doing 'something good for society' AND, I am getting paid for doing such.

The fact that you answered as you did (my inquiry below) means a lot!! ...not only to me personaly, but, I believe, it means a lot about the future direction of "this advice business", and the future business models to be formed around them.

[energyfinance]

Thank you for your answer.

I believe that I did see some FSBO's on some websites a few months back and then I saw some videos or ads about how to buy with no money down and no credit-- and then the subsequent barrage if emails from those people ('coaches') made me forget how I even got into this mindset.

Currenty, I have money and I good credit. What I am most interested in here --is the process: There will always be people seeking a place to live. And there will always be owners .....

[energyfinance]

Hello Michael:

I really enjoy cold calling AND I understanding concept of 'subject to'.

Sir, if you will share here: What are the ways you identify owners who may want to sell?

Are you going after them, or, are you placing some sort of "I buy houses" ads out there? (meaning: newspaper, sign posts, internet)

I think that there be many ways to identify and connect with owners who are wanting to sell, and I am wondering if you can share something substantial here.

Thanks,

Warren C.