I don’t believe there really are “tricks” to real estate. Your goal should be to ask yourself, “what can I do to help the other person?”.
My favorite way to gain a property is by a subject to, in order to build a rental portfolio. You are getting in with very little out of pocket that can be replaced when you get it rented out. As long as the mortgage payment and the rent will allow you to cashflow, it is a no-brainer.
Carolina Capital is a hard money lender serving the needs of the “Real Estate Investor” and the "Small Builder" borrower who is striving to build wealth and generate income for themselves and their families. We offer “hard money rehab loans” and "Ground up Construction Loans" for investors only in NC, SC, GA, VA and TN (some areas of FL, as well).
As part of our business practices, we also serve as consultants for investors guiding them to network with other investors and educating them in locating and structuring transactions. Rarely, if ever, will you find a hard money lender willing to invest in your success like Carolina Capital Management.
Hi everybody. Welcome to the show. By the way, my name is
Bill Fairman and I am with Carolina Capital Management. I always forget to tell
people who I am, which is not real bright for someone that is in sales, is it?
So, make sure you like and share. We have other videos available either up or
to the side or down depending on the platform that you are watching from. So,
we always get a lot of frequently asked questions. Here is one that I love.
What are some of the coolest real estate tricks you know? Well, really, there
are not any tricks. It is all about just being creative and figuring out the
pain points of the seller and what will work in your numbers and in your goals
or perhaps somebody else's goals. Because if it does not work with you, you can
certainly take a deal that is viable and actually you either give that lead to
somebody else or you know, you can also make money doing that.
Bill Fairman and I am with Carolina Capital Management. I always forget to tell
people who I am, which is not real bright for someone that is in sales, is it?
So, make sure you like and share. We have other videos available either up or
to the side or down depending on the platform that you are watching from. So,
we always get a lot of frequently asked questions. Here is one that I love.
What are some of the coolest real estate tricks you know? Well, really, there
are not any tricks. It is all about just being creative and figuring out the
pain points of the seller and what will work in your numbers and in your goals
or perhaps somebody else's goals. Because if it does not work with you, you can
certainly take a deal that is viable and actually you either give that lead to
somebody else or you know, you can also make money doing that.
I like to just do the networking part. If I can help you,
then later down the road you can help me with something. But, one of the things
I like to do on rental properties specifically is being able to do what is
called a subject to purchase, where you are buying the home subject to the
current owners financing. So, if you are doing that on a rental portfolio, and
as we know, rates are so low that if you are taking over someone else's
payments, you can arbitrage the difference between the financing that the
current owner has and the payments that you are going to receive for rental.
But you know, make sure you have to have plenty of reserves. You are the one
that is now responsible for making those payments. There is one thing that has
to be disclosed is that on every single mortgage note to a consumer, there is a
clause, it is called a due on sale clause.
then later down the road you can help me with something. But, one of the things
I like to do on rental properties specifically is being able to do what is
called a subject to purchase, where you are buying the home subject to the
current owners financing. So, if you are doing that on a rental portfolio, and
as we know, rates are so low that if you are taking over someone else's
payments, you can arbitrage the difference between the financing that the
current owner has and the payments that you are going to receive for rental.
But you know, make sure you have to have plenty of reserves. You are the one
that is now responsible for making those payments. There is one thing that has
to be disclosed is that on every single mortgage note to a consumer, there is a
clause, it is called a due on sale clause.
So, that person can sell you that property. But that note
holder, the bank, has the right and the opportunity to call that note due and
payable upon the sale. Because they did not underwrite you, they underwrote the
borrower that is now selling you the home. However, in all my time in the
mortgage business, I have never actually seen a bank execute the due on sales
calls. They are just happy that somebody is paying it, right? As long as you
are making the payments, that is good. And you need to make sure that the
borrower, or now the seller, signs a form that allows you to have permission to
get the mortgage information from the current mortgage holder because they are
going to send out updates. You are going to need to know what your payoffs are
going to be. They change any payments, structuring your taxes and insurance are
usually part of the mortgage.
holder, the bank, has the right and the opportunity to call that note due and
payable upon the sale. Because they did not underwrite you, they underwrote the
borrower that is now selling you the home. However, in all my time in the
mortgage business, I have never actually seen a bank execute the due on sales
calls. They are just happy that somebody is paying it, right? As long as you
are making the payments, that is good. And you need to make sure that the
borrower, or now the seller, signs a form that allows you to have permission to
get the mortgage information from the current mortgage holder because they are
going to send out updates. You are going to need to know what your payoffs are
going to be. They change any payments, structuring your taxes and insurance are
usually part of the mortgage.
So any updates if that loan is going to be sold to another
lender, you are the one that needs to get all that information and they are not
going to speak to you if you are not the one on the note. That if you have a
form that is filled out that signed by the seller, that gives you permission to
get any information that you want on their account. That is acceptable. So that
is a great way to take over somebody's payments. So essentially you are putting
a little bit of money down and you are taking over payments and then now, you
are going to rent the property out and you are keeping the difference between,
you know, the rent and what the mortgage payment was ongoing maintenance and
stuff is so that is a great way to do it. You are not having to buy and turn
around and refinancing.
lender, you are the one that needs to get all that information and they are not
going to speak to you if you are not the one on the note. That if you have a
form that is filled out that signed by the seller, that gives you permission to
get any information that you want on their account. That is acceptable. So that
is a great way to take over somebody's payments. So essentially you are putting
a little bit of money down and you are taking over payments and then now, you
are going to rent the property out and you are keeping the difference between,
you know, the rent and what the mortgage payment was ongoing maintenance and
stuff is so that is a great way to do it. You are not having to buy and turn
around and refinancing.
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