Dallas-Fort Worth Real Estate Investor Club

Looking for advice...

  • 10 Apr 2015 3:48 PM
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    Message # 3294087
    Scott Luna

    I'm trying to get my mother in law out of a bad situation.  She really can't afford her house and it needs about 15K in repairs.  I was thinking about buying it for what she owes (45K), fix it up and renting it (Arlington area).  I'd like to do this with as little out of pocket expense as possible so I'm looking for ideas (pay cash, sign over deed to me, conv loan, etc).

    House cost - 45K

    Repairs - 15k

    ARV - 80-85K 

    Not interested in HML b/c of all the fees, points and interest.

     

    Thanks in advance for your help. 
  • 11 Apr 2015 10:15 AM
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    Reply # 3294592 on 3294087
    Jack Martin Jr
    Try a subject to
  • 12 Apr 2015 6:04 PM
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    Reply # 3295615 on 3294087
    Tim Cook

    Buying it Subject-to is a great strategy or a owner finance WRAP mortgage.  Be sure to get the insurance updated correctly with either way you decide to go so you don't have an issue with the mortgage co.

    Good Luck.

    Tim
  • 16 Apr 2015 11:39 PM
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    Reply # 3304637 on 3295615
    Justin Vaughan
    Tim Cook wrote:

    Buying it Subject-to is a great strategy or a owner finance WRAP mortgage.  Be sure to get the insurance updated correctly with either way you decide to go so you don't have an issue with the mortgage co.

    Good Luck.

    Tim

    Sorry about new guy questions, I'm entirely new to real estate. What is HML, Subject-to, and WRAP?
  • 17 Apr 2015 6:32 AM
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    Reply # 3304890 on 3294087
    Tim Cook

    Probably the easiest thing to do is to google "buying houses Subject-to" and google "Wrap Around Mortgage" for a good explaination of what they area.
  • 17 Apr 2015 8:43 PM
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    Reply # 3306507 on 3294087
    Robin Carriger (Administrator)

    In this context, "HML" stands for Hard Money Loan.  "Subject-to" is a method of acquiring property with the financing of the seller staying in place after the transfer of ownership.  A "wrap" is a wrap-around deed of trust and promissory note.  There are A LOT more details to all of these.

    If you'd like to chat about any of this, please feel free to give me a call at 817-300-1132.

    Thanks,

    Robin
  • 18 Apr 2015 3:48 PM
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    Reply # 3307034 on 3294087
    Deleted user
    I'm no expert but here's a thought I ha, I would make a written agreement with her that she lets me first of all repair the house then sell it and then I would pay what she owes back from the money at the end buyer gave me Or even sell as is and with that money cover the loan and keep the extra...
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