Subject To | When Wholesaling Isn't an Option
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- Опубліковано 22 січ 2020
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Hey Max - Thank you for the step by step break down. Great Video! One issue with your calculation though - you counted the $15k repair twice. It was already included in the $47,769 out of pocket but you added it again as separate line item. So your walk away profit if you sold it would actually be $39,981.
KRoyal same thing I was thinking! I came to the comments to see if anyone else caught it. 👍🏽
KRoyal yep, I noticed and was thinking the very same thing. Excellent ROI and especially in such a short amount of time.
I had to watch that part like 2-3 times to make sure I wasn't losing it🤔🤨....Great video nonetheless!
I caught that too
Am bad at math to but he lost me on that, I hope he did it on purpose to see if we are picking up what he is dropping
As a filmmaker, I not only enjoy the quality info but also appreciate the quality of the video production. It's like watching a tv show.
Great video. Does the following scenario make sense?: Find a bank that will do a cashout refinance for 80% of ARV (assuming ARV of $205,000 to get $164,000). 1) Pay off the original loan of $108,000 after you get renters in there. Some banks have a "seasoning period" of 6 months to a year for rental property. 2) Take the $164,000 and pay yourself back for the $108,000 loan and your upfront cost ($47,770) and also pay an estimated $3,000 closing costs. 3) Pocket roughly $7,000 and still have $41,000 (20%) equity in the house. A $164,000 loan payment at 4% 30 year fixed is around $989 which is only $24 bucks more than the existing loan. 4) use the $54770 to do more deals. You still net $511/month cashflow from $1500 rent. You would have $0 of your cash invested in the deal that is making you $511/month and paying down the new mortgage (infinite ROI). win/win/win. I need to learn about Sub-2 deals. Keep the vids coming. Thank you. Let me know if my math is off.
You sound like a pro 👀
Capturing equity like a bandit! Great job! I just closed on 2 flip deals this week! 1 in Cleveland Ohio and another in St Louis Missouri and looking for my 3rd! 2020 lets crush it! Thanks for sharing!
Thats the secret that is well kept we have to learn it when we are new to this business.
I’m in the Cleveland market as well!
Lady Leniece so true
Infinite Prestige Sports and Entertainment nice! You investing in real Estate there also?
Are you currently buying homes in Cleveland Steve?
Hi Max! Haven’t seen a video like this from you in a long time. I personally like the “nuts and bolts” type videos from you. Keep up the good work 👍🏾
If you like the nuts ad bolts style teaching, would you mind giving your opinion on this? (its free) www.propelio.com/academy/courses/make-money-w-subject-to-wraps/
After giving the seller that awesome 💰💰💰 I’d put in a tenant buyer (as-is) with a reasonable non-refundable down payment for a few years, pay down the mortgage with their rent payments while collecting that extra cash flow and let the house appreciate, exiting with home ownership at the max retail price (minus their down payment of course). Get paid beginning, during and after. Just recently learned a few different strategies besides wholesaling. Amazing how many there are in real estate. Thanks again for the gems 💎 Max! 🙌🏽
More strategies?
No such thing as a tenant buyer. They're a tenant optionee. Otherwise you're creating a disguised sale which will kill you if taken to court. It's also not a down payment, it's option consideration.
Dave McEvoy Good to know! Still learning... thank you!
@@kingdomheiress177 beware the gurus
Dave McEvoy Agreed! 👍🏽
What’s also excellent is if you decide to lease option to buy as your exit strategy you essentially would accept a lease option deposit up front as the “ down payment “ where you’d make your cash up front and then cash flow as time goes on. Great video Max! 👍🏽
been doing this whole saling thing for about 5 months now still searching for my first deal these types of are a big help and shows me ways i could have saved a deal or two thanks max!!
Thanks Max! Tons of value here. Btw your numbers had an error. You added the 15k for repairs twice. It was already in the 47k initial investment. So if you flipped the home your net profit would be closer to 40k, not 25k.
Just listened to you on EYL! Subscribed immediately, finally someone who can break this down for me to understand. Thank you!! 🙌🏼
If sub2 intrigues you this breakdown is absolutely gold - and its free - This may help www.propelio.com/academy/courses/make-money-w-subject-to-wraps/
This is very great video Max!! Very detailed with a great backstory!! I understand the jist of "subject to" deals now. I really appreciate the time and work you put into getting us the info!!
I'm new to the investor game(trying my hand at wholesaling) and just came across a property where I was trying to figure out if there was a way i could have take over the owners mortgage and it's been stressing me out for a week now. Then i get up today and this video is at the top on my feed. I had no idea what it was called or anything. Thanks man. This definitely helps me out tremendously.
Mr. Max you spun us back to the studio to break it down! Much appreciation for all you share.
The person who disliked this is still probably searching for their first deal (it’s been 6 years). Stop hating.
The three people who disliked it were probably the ones who caused the lady to divorce LOL
jalabi99 😭 i just can’t understand how this is something you’d dislike. It’s helpful info.
@4Real Deals LLC Haters gonna hate I guess. I feel bad for them
@@adonijahdelancy6722 u
@Meet The Mentor You don't seem to understand "Subject to..." Max shows the HUD; he actually owns the property. The sellers would have to sue, and that is very expensive, and goes against the documents that I am sure they signed at closing. Sure, there are sue-happy folks out there, but if Max did a good job explaining ( and being ethical as he quite often shows) any reasonable seller would be happy to have gotten out without losing the house AND their good credit. The hypothetical Yukon buyer at the end of the video wouldn't have been at the dealership but for the help Max did for their credit rating.
Have 2 with this same exact spread. Literally love Sub 2’s. 3 ways to make money!
Hey Max, this was a great video and I learned a great deal. Another incredibly valuable point that I think adds a lot of value to renting out the property is that the Renter not only gives you cash flow but also is paying down the loan value (principle) with every month they are in the property. So at the end of 5-6 years the loan amount is actually going to be significantly less than $106,000
I'm just starting to explore the sub2 topic, but this is the best video I've seen on the topic so far. Thanks for this content Max!!
Dude thank you for all the knowledge 🙏🏾🤙🏾
Good job Max. I can tell you as the leader of a West Fort Worth Real Estate investor group many investors don’t understand the importance of the details behind what makes a good and successful Subject-to deal. Full disclosure to the seller and trust documentation are so critical to your success. I partner with new investors on Subject- to deals so they don’t screw up their first couple deals. Keep up the great work...
Wow.. I never knew that you could do a Subject TO like that ! That is an incredible tool !
Awesome Content Max! Good to see your still out there looking at deals.
You actually charged yourself an extra 15k because that 47,769 included the repair cost. 39,981 is the profit i believe.
4Real Deals LLC aww man, great to see I’m not the only one that got caught up on that too. I went back like dang if the repair wasn’t in that 47k how he get from 32 to 47 in upfront costs? Anyway great video. As always a Max is giving game in such an easy to understand way! Much appreciation
Just proves you don’t need to be good at math to make money lol
I’m confused. If he put in 47k and made 39k where is the profit? Didn’t he have to pay the original home owner 25k too?
Dennis Boyd I’m going to rewatch the video to better explain it to you. It’s been so long i can’t remember lol. But what i said was accurate.
@@dwbkmj anyone can answer? 25k(to seller) was in 47k(cash front) got that part. but yea he put 47k and made 39k im so confused..
Great video Max! I have bought 10 subject to houses so far. I have placed a rent to own tenant buyer in each. My goal is to buy a subject to for myself! 🏠 #iStayWoke
Great! Did you use a land trust too? How long typically do they hope to rent for before you want Tennant buyer to cash you out?
@@ob1o675 all in trust. One per house. I hope they never cash me out. They can stay until the end of time!
How do I find Subject to houses?
@@ChrisMonroeSTL Very interesting. What happens if they decide to move, can they sell the house and recoup the equity? Or is cashing you out their only exit per contract? Also, how easy is it to get the original seller to agree to keep the trust active if they want the property and trust off their name? Do you have Instagram? Thanks
Thanks Max!! I’ve always wanted this explained to me... You are the man. May you be forever blessed for how you’ve changed lives.💯 Jasmine😁
YES! This is gold. Appreciate the gems max
What are your thoughts on doing sub2 like this - www.propelio.com/academy/courses/make-money-w-subject-to-wraps/
Great video i loved the break down. And I especially liked the problem solving aspect. Just Don't forget vacancy, maintenance, and capex when analyzing cash flow.
This is the information I’ve been interested in the most lately 📝
Oh yes I’ve been waiting on this🙌🏾🙏🏾
Check this out though - sub2 is legit - This may help www.propelio.com/academy/courses/make-money-w-subject-to-wraps/
Thank You for this Seed 🤞 now time for me to grind and watch it Grow..
Very interesting. Looking forward to learning more about Sub2s! Thanks Max!
wow, you've made it so easy. I'm going to listen to this about 5 more times to get a better understqnding
Max great presentation on "subject to " , I haven't done one yet but I am working on a prospective buyer that based on the numbers make sense. Additionally, as you stated buy the property in a Land Trust :-) As the saying goes " Own Nothing, Control the process"
Good job Max! Thanks for the info
Max you are right on time bro! listening to your podcast and others speaking on subject to made me really want to get more understanding and here I am stumble on this video. 😅
man! If subject to is your thing - this free video series is the absolute truth - This may help www.propelio.com/academy/courses/make-money-w-subject-to-wraps/
Respect for literally step by step showing a subject to deal. Stayed away from it long enough, but congrats on the deal!
if sub2 makes you nervous this may help - www.propelio.com/academy/courses/make-money-w-subject-to-wraps/
Great content as always!!! These deals are definitely out there, I have a similar one under contract right now.
Max Finally Back with the Vids
New Subscriber studying books and watching Max all day I’m very motivated to master these skills. I’m glad i found this channel ❤️🙏🏾
If sub2 is your thing this video may take you to the next level - Free course www.propelio.com/academy/courses/make-money-w-subject-to-wraps/
Love watching your videos learning more about subto very creative strategy
@Max, you double counted your repair costs and this deal is even sweeter! Increases to $41k (vs ~27k) profit if sold at 205k. Great technique and amazing content.
Tony Robinson 🔥🔥subject too
Thx @maxmaxwell for great examples of action steps. 🧠💡
powerful knowledge with this" subject to "process you are awesome really appreciate you Sir !
Max Max Max Maximum respect and thanks for this video.
Learn so much from you max thank you 🙏
No way this timing is this perfect, i wrote in my planner to learn more about subject to today and you put this out
If sub2 is what you want to learn there is absolutely no better resource (for free) than this - www.propelio.com/academy/courses/make-money-w-subject-to-wraps/
Thank you very thorough information :)
very well spoken like always max
Great information as usual bro! 🔥🔥
My sister said you'll have to also pay on top of the mortgage payments a market rental payment as well.
Great information Max!!
Really enjoyed your video, learned a lot!
Great content Max!
Awesome video bro! Thanks!
Great informative video!
@17:12 Your Repairs were already included in your Cash Up front. Profit would've been $44,981. Great Context and Explanation.
I believe that because of the time factor ( lady needing money fast and trying to prevent foreclosure) for the seller is the reason why sub 2 is the best option.
Hey Max, great video but I think you counted your repair costs twice, so your deal is actually much more profitable!
Hey Max! Great video, I know it is a bit old but would you be able to talk more about buying the sub to property under a trust? Details of trust, etc? I am currently in the process of buying a sub to and would like to be as legally protected possible.
Question. I recently starting D4D and use the DealMachine App. The DealMachine App has its own ARV estimate. Now, I don’t have a realtor that I could go to, it is just me. Should I go with that of the DealMachine? How do I pull the ARV on the property?
You really made 40k. You had already calculated the repairs (15k) in that 47k. Good video.
Excellent lesson
Great video, smart move on the business decision
Really nice to see this explained so well! Thanks for the info.
Have you seen this breakdown on sub2? www.propelio.com/academy/courses/make-money-w-subject-to-wraps/
Awesome video. Question, when calculating your rental income I noticed you don't include vacancy, repairs, management, etc. Is that just for the video?
Hey Max, awesome insight. Quick question, how did you come up with the number (I believe it was 26k) for the couple to agree upon at closing cost?
I just want to know, What a wholesaler contract look like for subject-to?
Great video! You made it really easy to understand.
Have you seen this? www.propelio.com/academy/courses/make-money-w-subject-to-wraps/
♥️👍Great info! Easy to understand & execute ( with more education, of course).
if you need some more details on this (for free) check out this video - www.propelio.com/academy/courses/make-money-w-subject-to-wraps/
Hey Max, love your videos! I need some help with a Sub2 issue I’ve been facing recently. I’ve done about 5 Sub2 but the last two I have worked on structuring fell through. Both sellers had an fha loan and wanted to sell and move into a bigger more expensive home using another fha loan or a special builder loan program. The problem came down to the loan officer who did not approve of the transaction. This was due to the debt to income ratio. I tried to also take the angle of “leasing the property” as well as explaining that we would be using a third party servicer to conduct payments. Neither would suffice and I’m not sure how else to get past these loan officers. Any advice or suggestions would be appreciated.
thank you max!
So to my understanding all wholesale deals is a property that has no mortgage or any tax liens on it or is it better that way
Being foreclosed on @ 8 months pregnant, going through a divorce, during the holidays! Omg! 🤰🏽
Being that I'm probably going to rent it out anyway, I wouldve offered her a little bit of a different deal & let her choose.
🏡 I'd let her stay in the house for up to 6 months. For every month she stayed, I just would deduct $1,000 from the $25,000 that she would be receiving upon leaving. ($1,000, bc the home isn't fixed up yet. I wouldn't charge 1400 until it was done) That would give me some time to figure out what I want to do and give her a familiar place to bring her baby home to. 🤱🏽
Ultimately the deal works out to be the same either way! ✨💞✨
Very helpful. thxs
Thanks!
love sub 2
Been waiting brutha
Excellent
Great info.........
Brilliant!
Dream machine vs Propstream? Are they the same? Just starting out on tiny budget, which on will help me the most right now?
Great Value.
Great content
Any videos or samples of actual contracts for 'subject to' deals? I imagine things could get a bit messy if the contract for a "subject-to" deal is not worded with a high degree of specificity with i's dotted and t's crossed. Thanks
New to wholesale, do I need to get an attorney to get contracts and education on subject to pitfalls?
Hey max I got a seller that got tenants that’s in the house that’s renting but the seller is still willing to sale it to me while they are in the house! Do I have to use a subject to contract or can I wholesale it?
Looks great
Learned something new 🤝
check this out for some cray sub2 details - www.propelio.com/academy/courses/make-money-w-subject-to-wraps/
Thank you
PS. Repairs were already included in the $47k #, so net profit would of been close to $40k on the flip (rounded #s)
Still a great video
I was thinking the same thing about the math on that part.
@@EdfromVirginia757 yes, I'm an accountant so I do #s
Great video dude, thank you (:
Straight 🔥
Love the content per usual but the video quality seems a lot better than usual. Normally it’s good but this is amazing. Super crisp.
We shot in 4K
@@MaxMaxwellYT B & H has served you well my friend lol. I need to go pay them a visit soon.
If you obtain a property subject to and put your own insurance in place and the seller disappears before they cancel their insurance and changes the address so that statements come to me, is it a good idea to contact the lender and make them aware? The extra insurance cost is heavy and if something were to happen my claim probably wouldn't go through because theirs is still in play right?
Thank you for sharing knowledge. Some of us are just trying to find a creative solution to put a roof over our heads. GENTRIFICATION Not always about profit. Real wealth isn't monitary. you can try and hold on to it as long as you can but we're all walking toward the grave.
Profits of people. the American way. Capitalism..
Awesome job my dude! How do YOU personally handle homeowners insurance? Do you cancel their policy, create a new one with you as primary and add them as additional insured or do you do something else? I’m closing a sub-to and am looking for creative ways for that ins. Policy.
That answer is explained in detail from james jenkins insurance in this video www.propelio.com/academy/courses/make-money-w-subject-to-wraps/
Why not refi the balance (if keeping it as a rental) to improve cash flow due to the lower payment?
Do pools add or take away from the value of homes?
Question what contract should we use for this?
in a sense, he wholesaled the contract to himself, costing him 25k for the seller, plus the fees. then you see him add in the realtor fee, that will present him, when he flips it for 205k.
Nice video, you charged yourself 15k twice, the original 15k repairs was in the 47k upfront cost, actual profit would be 39k
If you’re looking for cash flow I highly recommend multifamily apartments! However SFR’s can obviously still work well but there’s a lot of downside protection when it comes to multiple units.
If anyone has questions about multifamily feel free to reach out. Just want to connect with like minded people!
I’m interested in multi family properties, I found one but needs over 60k worth of work. Just too much for my budget right now
"Subject To"✔️