|
|
Hmmm, so we probably did this for a few months…
My general sense around this is the following:
- 1.
People are embarrassed… As your home is often a
status symbol of success (and is part of the “American dream”, if you were
losing your home, you may feel shame and embarrassment)… I felt this quite a
bit… People were just not rational and realistic about coming to terms with the
fact that they are going to lose their home…
- 2.
Psychology of Foreclosure- So while there are
many smart people who have just had life experiences happen to them (a loss of
a job, divorce, etc), I’ve equally seen people who just blatantly made poor
decisions… People who were clearly in over their head and should have never
purchased “this” home anyway… Again, people are often irrational and in denial,
and may even look at you as the bad guy! Let me give you an example, you park
in a forbidden spot and your car gets towed away… You may be upset with the tow
truck driver while that person is just doing their job… Similar psychology here
in some of my experiences (“this person is trying to take my house away from me”)
… I had a lady who was 2 years behind on her mortgage (which I had never seen
before this) and she said “I’ll put it in God’s hands”… I don’t think even God
was able to save her after being 2 years behind…. I believe that if (in some instances only) people made better decisions
and were more rational, you’d see foreclosures be drastically reduced as there
are so many options out there for people. Again, many people just had life situations happen to them and are at little fault of their own... Regardless of the instance, it's heart breaking.
- 3.
If by chance you can convenience someone to sell
to you, realize that they are often 3-6 months behind, and with other fees,
this eats in to your profit… So sure, you decide to do a sub/2 situation, that’s
fine, you can sell the house via owner financing and the down payment will get you
caught up and you’ll have a passive income… So no large pay day but there is
that passive potential (which is nice)…
- 4.
Sub/2’s scare me… I’ve done several but I have separate
LLC’s for every Sub/2 transaction that I do… I personally will NOT do a series LLC. While I
think Series LLC’s have been pretty safe and secure in Texas, that doesn’t mean
that it can’t be pierced at some point moving forward…. W/ Sub/2 deals
especially, I do separate LLC’s in separate states… We’re coming up on a new
housing crisis and new laws… I think that protecting yourself WAY beyond what
is necessary for today is a smart move as you move your personal business(es) forward....
PLEASE NOTE: My opinion is always just that (my own opinion)... Always exercise your own due diligence with conducting business of any kind...
Warmest Regards,
Brian R. Baker, MBA
Texas Housing Partners LLC
New England Housing Partners LLC
brian@texashousingpartners.com
Last modified: 01 Jun 2015 4:48 PM | Deleted user
|
