When you end goal is to hold real estate long term, that's when long term bank financing comes into play. I also like to take over deals with owner financing or Subject To financing and then just pay for the renovations out of pocket. What some investors do is buy and rehab with a Hard Money loan and then refinance with a standard bank loan.
So long as you cash flow extremely well (and that includes spending the money to maintain the property overtime), then that approach is fantastic. The issue is that most people barely eek out a cash flow on single family homes and therefore neglect maintenance and so, overtime, their properties deteriorate, the coming and going of tenants sucks up tons of money and then, 5 years later, there is little to no financial benefit. It has to cash flow strong to work.
Because you were the genius in the deal who found the distressed seller. That's why we focus on deals that are NOT listed on the MLS. The key is to get to the deals before anyone else knows about them.
The right paperwork. The right deal structure. The right closing set up. There is a whole lot that goes into it. But even if they do get together, if you set it up right, they can't cut you out.
You can "Google" to find them. You can attend the local REIA clubs (Suncoast REIA, Tampa Bay REIA), etc. They aren't all that difficult to locate. The more challenging detail is having a deal good enough that they actually want to fund and building a relationship so that they are more flexible on terms and fees).
Absolutely., But make sure you buy them at a real good bargain so you can cashflow really, really strong. The problem with duplexes is that you can't do Rent to Owns so your rents have to really produce cashflow to help offset the inevitable issues that arise.
If the rent is strong enough, I have seen where some investors use Hard Money loans for long term rentals. Why not structure creative financing? If the property is listed for $72,000 and no one has bought it yet, that sends a red flag up that the property may not be as valuable as it first appears.
I don't understand the question. Are you asking me how many hours you should be reading if you are first getting started? Or are you referring to how much I personally read? I eat, breathe and sleep real estate investing. You probably won't find anyone more immersed in real estate investing on a day to day basis.
For my purposes in the future this is the best educational video I have viewed Phil. I am moviing from strickly "owner financing" to all these financing options. Good to see you have pulled these off. The trouble is finding the providers of such seed capital. I have used owner financing only ...but have been successful in buying and for a low or discounted price knowing that the props will appreciate quickly because OF researched facts that the "public" has no clue about in a very small local that I have "insider" info on that is real and happening or happening in the near future. Now I am looking to get into wholesaling for quick turnover. Yes, I find buyers FIRST !!!.. FOR SUCH AN INVESTMENT PROGRAM. This costs me much time.. but no up front purchases.
If you have the right contract in place with the seller, you acquire Equitable Interest in the property and you have the Constitutional right to free alienation of property, therefore, you have the right to sell the property based on the fact that you have it under contract. If you have the right language, you can market it in anyway you deem fit, from signs, online postings, the MLS, to all sorts of other ways to find buyer.
Hi Phil. Great video. What are the similarities/diferences between hard money and transactional funding? Is transactional funding anything like a conventional loan where I have to qualify to get it? Thanks, MJP
Transactional funding requires that you have a buyer already lined up and ready to close. Hard money does not require you have a buyer lined up, but you must be buying the property for 65 cents on the dollar or less.
property investing makes me excited and i don't even know why this is defiantly where i want to create my wealth glad i found your channel phil cheers.
11:20 im sorry but i am not the best with numbers and am new to this but i was confused on what you were talking about where you showed a $100k => $65? what does that represent? i am looking and saving to purchase a home in maybe two years and will need a loan most likely
How does the bank not loose money when they have to transfer $100,000 to the sellers bank account upon settlement? One more question Phil, where can we find private money and hard money lenders? Thanks
Learn how the concept of "fractional banking" works. They aren't lending $100,000 of real money. They may only have $10,000 on deposit to be able to lend that $100,000. You can search for hard money lenders either online or by reaching out to some other local investors. As for private money, you have to cultivate that yourself by building relationships with people who have cash they want to invest.
I feel like I found a deal but having trouble finding a hard money lender. The house is listed for $72,000 and there is a comparable down the street that just sold for $136k. This would be my first investment property but its something I've been dreaming of for years. I want to keep the house as a rental though- is a hard money loan still a good option if I dont have a down payment?
Are you sure about, "...the amount its diluted is minuscule..." ? You may be teaching me something new, but from my understanding, inflation (the devaluing of money) is caused by the printing of money. Again, I am no expert on this particular subject, but from all my studies, I think the dilution is significant.
Phil I really appreciate your input. I watched the video of you presenting to the college class and how you started. I had the same situation in college where I rented a house and the owner asked if I wanted to buy it at the time. I told him no and regretted it ever since. Thanks for sharing your knowledge of the industry. You are a big help to others.
Phil, I think you should read the Wikipedia article on Fractional Reserve Banking. The money supply expands based on the reciprocal of the reserve percentage (it varies over time) only when the borrowed money is actually deposited back into the banking system. Thus, when money is lost on a foreclosure, for example, the bank is liable to its depositors for that loss. Also read the "Islamic Banking" article about how Islamic banks don't lend for interest, but invest as equity partners for profit.
HUD Foreclosures are a completely different ball of wax. You may not even be able to buy it for a period of time since you are not an owner occupied buyer. Unfortunately, this TH-cam comment box is a tough place to try to coach and mentor someone. I wish you the best of luck. Perhaps consider watching many of my other videos.
Phil. your presentations are excellent.. I even filled out the apprenticeship app on your web site and watched your 56 minute video.. I hope to hear from you soon.. And much kudos to you on the LLC/S-Corp videos for RE investors that you did.. Great information !!
One more questions Phil, if you dont mind. On the topic of transactional funding, how are you going around the 90-day requirement on being on title before you can sell the property the end buyer? I currently have two pending, and immediate, end buyers that are waiting for a move on my part to get them a SFR here in California. Trans-actional funding will only flash fund for a day or two.. how can 90-days be stretched ? Thank you Phil. Once again, keep the knowledge flowing..
DISCLAIMER: The following is NOT legal advice. OK...You can modify your loan on your own. Paying someone else is usually a big waste of money. But remember that it will take a while, expect to fax the same documents ten times to the different people at the bank. Like doing anything yourself that is new, it may not be fun. But save your money and modify the loan yourself.
Good day Phil I'm a bit new to real estate and I would really appreciate if you could explain what is "getting a house under contract" and more importantly how would I go about setting this up I hope I'm not interfering with your schedule sir
MrCrazyClaw It means that you are executing a contract between you as the Buyer and the seller of the property. This video explains more about how that process works: th-cam.com/video/REQfFq0vnlY/w-d-xo.html
This video was very informative! As well as the rest of your other vids, I am currently deployed in Korea and took my time to educate my self through your videos. What led me towards you was purchasing my first home which im currently in the progress, since Im getting out soon of the military. I have one question that i kind of got stuck if you don't mind helping well i have two properties one for 99,000 suburban area decent looking 3 bed 2 bath house with .75 acres, then I have second property which is a duplex in CSU Chico, it is a 3/2 for one side and other 2/2 but it goes for 320,00, again which would be the best way to go forward with this two options? I know i can pay of the 99,000 quicker but then again rent would be an issue where as i would have a bigger dept with the duplex but I know I would be able to rent it out to a family or college students. Thank you
Thanks Phil for the insight. My burning desire to achieve my goals will Trump all the obstacles standing in my way at the current time. Thanks for the encouragement and knowledge that you continue to share with us.
Hi Phil, My question is about the hard money part of the video. In it you state the loan up to "65% of the value." My question is the value of what? The value of original purchase price of the property I'm going to pay or the value of the property after the rehab? Thanks Jon
Jon Girouard Value of the Actual Market Value after the property is rehabbed or whole sale. Actual market value is market value in a property's it's best condition.
Hi Phil! Lots of good stuff, particularly interesting info on the transactional financing. One CAUTION TO INVESTORS using the "subject to" technique that I didn't see brought up in the comments (though I might have missed it): it may activate a due on sale clause in the mortgage contract. Sometimes banks ignore the due on sale clause if they are receiving their payments regularly, but sometimes they don't and they are well within their right to pull the plug on the deal particularly if they feel that the new owner is a lot riskier than the previous. I don't know what you would advise, but I don't like nasty financial surprises down the road, especially from financial institutions with good legal teams. I go with the "when in doubt: disclose, disclose, disclose" rule of thumb. How do you go about using "subject to"s while avoiding the due on sale clause?
Woodwindist This video discusses that topic at length: th-cam.com/video/lSXGxOiRp7A/w-d-xo.html Plus, anytime someone brings up concerns over due on sale clauses, I ask them how many times it has happened to them. I have yet to ever get definitive (not heresay) evidence that anyone has ever been bitten by the due on sale clause when the payments are made on time, ever, in 15 years involved in this business. And bare in mind this channel has over 5 million views so I have enormous exposure to a gigantic worldwide audience. Furthermore, we often take over deals whereby the borrower has deceased subject to and by federal law, if the payments are ontime, the bank can't call those loans due.
Phil Pustejovsky correct me if I’m wrong but didn’t Dave Ramsey had that happen to him and he lost 4 million in real estate because they pulled his notes
13:25 how do you secure a contract with a home seller? if you cant find another investor who wants to purchase the home than are you stuck having to purchase the home? thank you for making these videos. im 23 and dont have anyone to really teach me this other than you and graham lol
I admire your passion for other people and rel-estate i would rather loose my own than some one else s in a heart beat. we r working on a rent to own on our first property in the geehto as u put it we are putting our own money into it along with the payments insurance ect. we r on a fixed income. we don't look to gain a profit from this house but a portfolio and home threw other property rehabs. we do all our own work. we are moving 8 hours away + from every one n everything we know do u have any advice thanks
Can I do the owner finance with a real estate agent? It's off market right now but I've already spoke to him about getting the house and I been tempted to go directly to owner
Phil what kind of immediate expenses can I expect when doing a subject 2. What are the costs associated with this strategy from a buyer perspective? I have a retired man looking to sell his condo in the Dallas area and just wants to get out. If he would just turn the mortgage over to me what would be initial costs?
Depends. Are you closing with a traditional closing attorney/title company? Or are you closing by yourself with a notary? There are costs for recording the deed, at the very least
Hi Phil your Testimony on your Experience over the years with this Buissiness is so Powerful and I Really Enjoy your Segment and God Blessed me to see your Video as I was Looking at Another Video!My Self have good Credit and Looking to stop Renting and Own But im also Looking to Use your Method Because I Dont have Much Cash to Work with Right Now!Im going to Sign up to Take your Mentorship on Line so I can Learn more in the Mean Time and also in the Process Learn how to Gain some Financial Benefit from this as Well!Always was Interested in Real Estate but never knew How to go about it and Love to watch Flip This House!God Bless You For All Your Doing to Help others!
Great video. I always enjoy learning something new about real estate. What you said about banking, however, is incorrect. The way that fractional reserve banking works is that a bank can loan out a large portion of the money it has, and only has to keep a portion of it for any withdrawals that are made. When the bank makes loans it creates a a liability for itself. It has to eventually pay back everybody that deposited into the system. The bank also makes an asset for itself because the debtors owe the bank the amount they borrowed plus interest. If $100k is deposited into the bank, the bank may keep $10k available for withdrawals and would lend out the rest of the money. If the people that borrowed the $90k can't pay it back, the bank will go bankrupt because it still owes that money to the people who deposited it. Most people won't default and the 90k, however, and the money will eventually be deposited into the bank again, by somebody else, and will be lent out again by the bank. When the first $100k was deposited, the bank has a liability of $100k. After a couple of cycles of lending, there may be have $900k of liabilities, $100k in the bank, and $900k+ in assets, and for the bank not to fail, it must get $900k back to cover the liabilities that it has created, plus some extra to cover operational expenses. If somebody fails to pay back a bank somebody still loses money somewhere. If only a small fraction of people default on their loans, then the bank's profits are hurt, but it still makes money from the good loans. If a large fraction default, and the bank can no longer cover outgoing expenses such as interest payments and withdrawals, then it will fail if another bank isn't willing to buy off its assets. It can also fail if everybody rushes to get their money back, since it has to wait for the assets to pay off, but can't wait to pay back the liabilities. When a bank fails the people who deposited into the bank would lose their money, but they don't only because the FDIC insures banks. The people that deposited into the bank don't walk away unscathed, however, because the insured money has to be printed, and so the dollar loses value. In the U.S. if bad loans cause a bank to fail, then everybody that uses the dollar is affected by the bad loans. Obviously it is still better to borrow from the bank than from a friends life savings. As long as the default rate is below what the bank can tolerate then the bank and it's depositors will be fine. The person that pays for it the most will be the debtor since their credit will be ruined. This calculated risk and protection from personal bad loans is of course why banks exist in the first place.
Banks are not bound by only being able to lend out their deposits. They can lend up to 10 times (or more) the amount of their deposits. They may be required to keep 10% of those deposits on hand for withdrawal, but they ALSO can lend up to 10 times (or more) of the total deposits.
Banks pay insurance on deposits, this is how the FDIC gets its funding. If you dont pay your bank back the bank takes a hit, they still have to pay back their depositors or creditors.
John Carter Keep in mind that they are only lending 10% of deposits. So they would have to totally take a GIGANTIC hit of more than a 90% loss for the FDIC insurance to kick to cover depositors.
That's a discussion that would far exceed the limits of this comment section. If you aren't working with a mentor who can walk you step by step through this, you might as well bite the bullet and spend the money to have a professional closing company handle it for you. You don't want to make mistakes, that's for sure.
Phil, how long does it take to build a strong relationship with your bank to the point were you can give them a call and they can write you a check to invest in real state? I own two properties but I had to use my first home as a colateral to purchase the 2nd one. I'm just a beginner at real state. Thanks for the great videos.
zach10Argento Never. Banks don't do that, ever. However, you may be able to build a relationship with a hard money lender or other private real estate lender that will do that.
I'm about to start flipping houses here in Texas within the next year and currently I'm gathering all the information I can to gain knowledge in this field. My two biggest questions would be, Where to go purchase the property to flip (what's a good amount for an first timer) and How can I find people to in vest in me so that I can purchase the property to flip?
I enjoy all of your videos and learn a lots from you Phil. I want to become a real estate investor. I have a dream to live free in the future. I will use your technics and your educations. Thanks a lots for all your times to share with us.
Phil, you are wrong about reserve banking. The bank lends $100, gets $40 back then it has to write of $60 off their earnings. The extra $90 is created by expanding the money market but it gets deleted when it is paid back, also the leverage is not as big as in the past anymore.
Hi Phil. I was curious about the "subject to" you talked about when taking over payments of a mortgage. I understand that the bank or mortgage company can take back the house (maybe just in certain states) if the owner of the house tries to sell it to someone else this way. Is that true and if it is how often does this happen?
The number of times a bank has exercised their rights to enforce the due on sale clause in our 15 years of experience of not only our own 1,000s of deals, but also the ones of others, is ZERO (unless the mortgage fell behind on payments).
Hello Phil. Baltimore,Md Investor/Wholesaler. When borrowing transactional funding what expenses would the investor usually incur? Am I only paying the 2 to 3% on the transaction funds? Does the Buyer pay both closing cost?
Phil your videos are great, i'm 17 from the UK I want to make my first wholesale deal this summer, however I could really do with a mentor. I was wondering if you have any links with mentors in england that could possibly help me?
Real Estate Investing is one of the few businesses that you can do on the side (evenings and weekends) because most sellers are home from work during those times. Head over to my website and apply to be my apprentice. Thanks for the compliments!
Hi Phil, My question is when you do a subject to ...when you agree to pay the mortgage does the person remove their name from the deed. And do you later refinance or set up the mortgage and put your name on mortgage loan ? Do you alert the bank and say surprise my name is on the deed and now i want to be on the loan for a possible lower interest rate?
The Deed transfer title to you but the Mortgage (or Deed of Trust or Security Deed)...aka the Security Instrument collateralizing the loan to the property, stays the same and doesn't change. Typically, when you purchase a property Subject To the existing financing, you update the insurance policy which alerts the bank of the change.
Hi Mr. Phil, I'm a college student looking to get a real estate license in Texas. I go to SMU and therefore will be practicing in the Dallas area. How long do you think it takes for a new agent to make their first sell? My plan is to sell, save 30k, buy a foreclosed home, rent it out for 600-800 a month, and continue the cycle. This may take 2-3 years I know but I was wonder just how long a sell usually takes to get started. Thank you
Thanks for replying Phil, I'm 22 and would like to start off earning a living in a field where I can have as much freedom as possible. Investing in general seems really appealing, real estate especially because of no money down options for beginners and huge tax benefits and all. I currently live in one of the least tax- and legal friendly countries for real estate investors in the world. I like the US because of the diversity, language, climate, and the laws to name a few reasons. So why not!
Hey Phil, When using hard money, (buy, rehab, rent out for a long term hold strategy), do you ever know 100% that you will be able to refinance with a commercial mortgage (in my case) as long as it is rented out and the DSCR is greater then the banks threshold (1.25)?
I am so interested in this.Thanks for all the videos,I have just begun to watch them.I live in Muskegon Michigan and not much to choose from here as far as properties.I had knee surgery that failed and can't do my old job anymore and really loved your story of how you got started.I am not homeless but am behind on rent.No job as of yet either for I am getting older(50)And I live in a dumpy depressing trailer park .My 22 yr.old Son lives with me and it would be great to even find a house for us to live in.Our credit is bad but not for long since I have found that a simple letter works to the debt collectors..one down so far! Also the a4v works! Do you have any videos how I can find an investor to get me started? Thanks! It would be awesome to be able to just get the Mortgage and then pay it off in a couple months from my federal reserve account..Not many people know a way to do get a Mortgage without any money.Creative thinking! I did watch the no credit/no cash video..but like I said not much opportunity here and I wish I could move because I would.Thanks! Lori Beugnot..My son is Mckenzi..not sure why it came up in his name.
Outside of this video: th-cam.com/video/wyooI5J91UM/w-d-xo.html you have very limited options for doing that. The best thing to do is to focus on great deals rather than trying to turn bad deals into good ones.
The Federal Reserve. And the where does the Federal Reserve get their money from? Thin air. Reading the book the Creature from Jekyll Island will reveal the truth behind the whole mechanism. Fascinating. For instance, the Federal Reserve is neither "Federal" nor a "Reserve". The Federal Reserve is not owned by the government. It's privately owned. I wrote a blog post on this subject on my website too called "The Truth Behind the Federal Reserve"
Hey Phil please give me your fatherly advice (LOL) I live in a city where the jobs are and i am paying rent. I am buying a house cash where no jobs are.The question is which is better buying the house and living there or renting it and keep paying someones mortgage?
If hard money lenders lend loan to value, how does one determine precise value of the property to make sure they are lending 65% of property value? I would consider this if I knew how to get an accurate value of the home, which I am sure the hard money lenders will do their due diligence on that end also.
Regarding owner financing: How do you approach owners with this proposition? Do you just test the water and ask them if they are open to it? If not what is the best way to pursue them?
There is an entire process in which to best approach sellers so you get the maximum chance of success. It is partially explained in this video: th-cam.com/video/ahRvk6ggMy8/w-d-xo.html
Hi Phil I am very exited too have come across ,this and I am going too try this out ,one question the subject too offer ,do you have the document drawn up in the company name or in the trust ?
I been watching you videos for some quite time now, very good videos... I live in nyc and was thinking of starting rentals in NYC, was thinking about using my own savings and funding from banks. What do you think of the market for NYC for rentals for rookies?
It just went on the market yesterday. Scheduled to see it this afternoon. I found out its a HUD foreclosure so govt owned now. I could rent the house for anywhere from $1200-$1500 based on others in the area. Will try to move on this fast. What do you mean by structure creative financing?
I own 5.5 county acres. On 1 acre I have my personal home. The other 4+ is separated by a creek and is heavily wooded. I want to clear the land and put a mobile home on the property that I currently own. I have payments( 6yrs) on this home and my son will rent the home. I also want to add more mobile homes (4) acres. I am limited on how many bc of septic tank laws. I am considering taking a real estate course (2wks) and final hrs to be licensed only to help myself do the best I can with the property. My goal is owning my own income rentals and separating the land from home as a business to protect my home. I also would like to develop more mobile homes and land til the income pays everything then more to houses. Mobile homes rent well here but has drawbacks...theyre mobile homes. Do you have advice on what information/education I need? Managed apts 25yrs ago. K
You are wasting your time if you go get a real estate license to help with your property. Instead, go spend a day at the city or county planning commission and learn the rules and regs for subdividing land, adding mobile homes to land, etc.
Thank you for your fast response. I got some good information out of your videos. I will follow your advice. I really didn't see how real estate course would help but would like it to be a success not a life altering disaster! thanks kuddos to u!
Hi Phil! Can I come over from Sweden and become a student of yours? I've seen most of your videos twice and I'm reading your book for the second time, so it feels almost like I know you in person :). Is it possible to be mentored face to face by you or someone from your team in other states than Florida?(it climate seems so hot down there) If not, do you know any other open-minded investing mentor in the US who you could recommend? Thank you for all what you share!
ok so my parents want to buy a home but they have very little saved up not enough for a downpayemnt. They are both disabled but only one gets disability. Their credit is not good ..... so how can they buy a condo or townhouse ? I know about owner financing but its so hard to find one ... oh and how do you find a hard money lender or a transactional lender?
Well because my parents believe that its a good way to invest their savings as well as mine. Actually here in Charlotte to rent a decent 2bd 2ba apt in a decent school distirct is $1200 for that money you could have a brand new home or townhouse.
So can i sell the home i reside in that is in preforeclosure to one of the real estate investors looking to buy it so i can take the profit to find a place to live? If so how do i do it.
@@freedom_mentor because the quit claim deed that was given to me with the intent of me securing the rights to the home had an error in the property description so the appraiser's office sent it back to the original mortgage holder but to a wrong address so no one was aware of this until it was too late now the original holder is deceased from a tragic car accident so even if I amended the deed to fit the proper description he is not here to sign it and the executor of the estate is halfway across the country with stage 4 cancer and a quarter percent less of his heart working. I just have no more money left for lawyers or anyone else I fought the good fight for as long as I could unless you have another option for me oh great real estate guru I'm at a loss and really really need some assistance
@@marleahunter4809 If you don't have clear title to the property, then you can't sell it. Also, the lender will have trouble foreclosing due to this title defect. You may be able to ride this out and live for free for a long time. Hire an attorney to help you.
@@freedom_mentor I have exhausted my resources I had a lawyer that cost me quite a grip and he is no longer with us. Unexpected heart attack. Now I'm back at square one. Is there somewhere I can turn to educate myself or any hard lenders here in Florida that u know of that may be willing to pick up the property and allow me to rent to own from them.
When you end goal is to hold real estate long term, that's when long term bank financing comes into play. I also like to take over deals with owner financing or Subject To financing and then just pay for the renovations out of pocket. What some investors do is buy and rehab with a Hard Money loan and then refinance with a standard bank loan.
What's a good fixed interest rate?
So long as you cash flow extremely well (and that includes spending the money to maintain the property overtime), then that approach is fantastic. The issue is that most people barely eek out a cash flow on single family homes and therefore neglect maintenance and so, overtime, their properties deteriorate, the coming and going of tenants sucks up tons of money and then, 5 years later, there is little to no financial benefit. It has to cash flow strong to work.
Because you were the genius in the deal who found the distressed seller. That's why we focus on deals that are NOT listed on the MLS. The key is to get to the deals before anyone else knows about them.
The right paperwork. The right deal structure. The right closing set up. There is a whole lot that goes into it. But even if they do get together, if you set it up right, they can't cut you out.
You can "Google" to find them. You can attend the local REIA clubs (Suncoast REIA, Tampa Bay REIA), etc. They aren't all that difficult to locate. The more challenging detail is having a deal good enough that they actually want to fund and building a relationship so that they are more flexible on terms and fees).
Absolutely., But make sure you buy them at a real good bargain so you can cashflow really, really strong. The problem with duplexes is that you can't do Rent to Owns so your rents have to really produce cashflow to help offset the inevitable issues that arise.
Interesting questions. Why real estate? Why the United States? Isn't there some real estate advisors in your country that could help you?
If the rent is strong enough, I have seen where some investors use Hard Money loans for long term rentals. Why not structure creative financing? If the property is listed for $72,000 and no one has bought it yet, that sends a red flag up that the property may not be as valuable as it first appears.
12:20 is this how wholesale works? ive heard about something where you can sell someone elses home to another investor and pocket the difference.
I don't understand the question. Are you asking me how many hours you should be reading if you are first getting started? Or are you referring to how much I personally read? I eat, breathe and sleep real estate investing. You probably won't find anyone more immersed in real estate investing on a day to day basis.
Thanks for investing in such a necessary topic! I am learning so much about Real Estate by watching you!
You are a TRUE teacher. I always feel like I am in a lecture like in college. I am learning a lot. Thank you.
Read my book. Your plan sounds great but in practice, you could use that $30,000 to buy 5 houses or more in the MetroPlex.
For my purposes in the future this is the best educational video I have viewed Phil. I am moviing from strickly "owner financing" to all these financing options. Good to see you have pulled these off. The trouble is finding the providers of such seed capital. I have used owner financing only ...but have been successful in buying and for a low or discounted price knowing that the props will appreciate quickly because OF researched facts that the "public" has no clue about in a very small local that I have "insider" info on that is real and happening or happening in the near future. Now I am looking to get into wholesaling for quick turnover. Yes, I find buyers FIRST !!!.. FOR SUCH AN INVESTMENT PROGRAM. This costs me much time.. but no up front purchases.
Check out this video too: th-cam.com/video/rWfRDEXWBhQ/w-d-xo.html
If you have the right contract in place with the seller, you acquire Equitable Interest in the property and you have the Constitutional right to free alienation of property, therefore, you have the right to sell the property based on the fact that you have it under contract. If you have the right language, you can market it in anyway you deem fit, from signs, online postings, the MLS, to all sorts of other ways to find buyer.
Hi Phil. Great video. What are the similarities/diferences between hard money and transactional funding? Is transactional funding anything like a conventional loan where I have to qualify to get it?
Thanks,
MJP
Transactional funding requires that you have a buyer already lined up and ready to close.
Hard money does not require you have a buyer lined up, but you must be buying the property for 65 cents on the dollar or less.
Thank you Phil for sharing all this with people. You are one of very very few people that i agree with here on youtube... all the best
property investing makes me excited and i don't even know why this is defiantly where i want to create my wealth glad i found your channel phil cheers.
I will dig into that. Thanks so much for sharing. Perhaps I over-simplified fractional reserve banking in the video :)
11:20 im sorry but i am not the best with numbers and am new to this but i was confused on what you were talking about where you showed a $100k => $65? what does that represent? i am looking and saving to purchase a home in maybe two years and will need a loan most likely
How does the bank not loose money when they have to transfer $100,000 to the sellers bank account upon settlement? One more question Phil, where can we find private money and hard money lenders?
Thanks
Learn how the concept of "fractional banking" works. They aren't lending $100,000 of real money. They may only have $10,000 on deposit to be able to lend that $100,000.
You can search for hard money lenders either online or by reaching out to some other local investors. As for private money, you have to cultivate that yourself by building relationships with people who have cash they want to invest.
Money can be an enabler! Wow! Great insights, Phil.
I feel like I found a deal but having trouble finding a hard money lender. The house is listed for $72,000 and there is a comparable down the street that just sold for $136k. This would be my first investment property but its something I've been dreaming of for years. I want to keep the house as a rental though- is a hard money loan still a good option if I dont have a down payment?
Are you sure about, "...the amount its diluted is minuscule..." ? You may be teaching me something new, but from my understanding, inflation (the devaluing of money) is caused by the printing of money. Again, I am no expert on this particular subject, but from all my studies, I think the dilution is significant.
Yes. And to take it a step further, you really want to get help from an attorney that truly understands creative real estate investing.
Phil I really appreciate your input. I watched the video of you presenting to the college class and how you started. I had the same situation in college where I rented a house and the owner asked if I wanted to buy it at the time. I told him no and regretted it ever since. Thanks for sharing your knowledge of the industry. You are a big help to others.
Thanks for this video, Phil. How can we simpletons learn more about what good deals look like in our market?
Phil, I think you should read the Wikipedia article on Fractional Reserve Banking. The money supply expands based on the reciprocal of the reserve percentage (it varies over time) only when the borrowed money is actually deposited back into the banking system. Thus, when money is lost on a foreclosure, for example, the bank is liable to its depositors for that loss.
Also read the "Islamic Banking" article about how Islamic banks don't lend for interest, but invest as equity partners for profit.
HUD Foreclosures are a completely different ball of wax. You may not even be able to buy it for a period of time since you are not an owner occupied buyer. Unfortunately, this TH-cam comment box is a tough place to try to coach and mentor someone. I wish you the best of luck. Perhaps consider watching many of my other videos.
Would u buy 1bed 1 bath condos as rental property? And do u thinks its better to use a property manager rather than do it your self? Thanks phil
Phil. your presentations are excellent.. I even filled out the apprenticeship app on your web site and watched your 56 minute video.. I hope to hear from you soon.. And much kudos to you on the LLC/S-Corp videos for RE investors that you did.. Great information !!
Love Phil, so much knowledge and has the gift of teaching simple terms. Thanks Phil
Who says you can't show the house? If you have the right contract with the seller you can.
One more questions Phil, if you dont mind. On the topic of transactional funding, how are you going around the 90-day requirement on being on title before you can sell the property the end buyer? I currently have two pending, and immediate, end buyers that are waiting for a move on my part to get them a SFR here in California. Trans-actional funding will only flash fund for a day or two.. how can 90-days be stretched ?
Thank you Phil. Once again, keep the knowledge flowing..
DISCLAIMER: The following is NOT legal advice. OK...You can modify your loan on your own. Paying someone else is usually a big waste of money. But remember that it will take a while, expect to fax the same documents ten times to the different people at the bank. Like doing anything yourself that is new, it may not be fun. But save your money and modify the loan yourself.
Finally someone that wants to legitimately share how to invest in real estate without having to pay for it !!!! Lol you are awesome phil!!!!!
You are absolutely correct about having access to money.
Phil do you suppose you can build a good renter portfolio with just duplexes?
Phil, what do u think about the old fashion buy, hold, rent it out.accumulate maybe liquidate everything down the road?
Good day Phil I'm a bit new to real estate and I would really appreciate if you could explain what is "getting a house under contract" and more importantly how would I go about setting this up I hope I'm not interfering with your schedule sir
MrCrazyClaw It means that you are executing a contract between you as the Buyer and the seller of the property. This video explains more about how that process works: th-cam.com/video/REQfFq0vnlY/w-d-xo.html
I love to learn for u. U r good. I just want to say thank you.
Where can I find good "subject to" template paperwork to use
Due on sale clause or required owner occupied original loan. Not lease option etc
How may I get a copy of your book? I also do not want to take out loans to buy these houses so I think 30k for is reasonable. Thanks
in transactional funding how do have the sale for 120K locked if u didnt even own the property?
This video was very informative! As well as the rest of your other vids, I am currently deployed in Korea and took my time to educate my self through your videos. What led me towards you was purchasing my first home which im currently in the progress, since Im getting out soon of the military. I have one question that i kind of got stuck if you don't mind helping well i have two properties one for 99,000 suburban area decent looking 3 bed 2 bath house with .75 acres, then I have second property which is a duplex in CSU Chico, it is a 3/2 for one side and other 2/2 but it goes for 320,00, again which would be the best way to go forward with this two options? I know i can pay of the 99,000 quicker but then again rent would be an issue where as i would have a bigger dept with the duplex but I know I would be able to rent it out to a family or college students. Thank you
Phil Pustejovsky ..
I don't understand your question. Are you asking what I think you should do with your two currently owned properties?
Thanks Phil for the insight. My burning desire to achieve my goals will Trump all the obstacles standing in my way at the current time. Thanks for the encouragement and knowledge that you continue to share with us.
Yes
hey Phil how do I get the banks to indulge potential foreclosure or a default on a property? So I don't have to deal with realtors,
+Edwin Buhler Good luck. Banks rarely allow investors to go directly to the asset manager and cut out an agent or an auction.
Do you have a video just on hard money lending? that covers calculating purchase, rehab and finance cost to figure out potential profit.
Yes. Watch this video: th-cam.com/video/EudeRC3p5rQ/w-d-xo.html
Hi Phil,
My question is about the hard money part of the video. In it you state the loan up to "65% of the value." My question is the value of what? The value of original purchase price of the property I'm going to pay or the value of the property after the rehab? Thanks
Jon
Jon Girouard Value of the Actual Market Value after the property is rehabbed or whole sale. Actual market value is market value in a property's it's best condition.
hey phill,
very informative video, just wondering what age should someone start investing real estate?
how do you find the information on a commercial property? Finding the noi is the challenge to do the correct cap.
Watch every video on this TH-cam channel: th-cam.com/users/CommercialPropertyAd
We've been very busy lately. I'll have a team member reach out to you shortly. Thanks for your patience.
I'm very confused . How exactly doest tradition financing work? How do you make the deal before getting the actual loan for it ?
Im in the Tampa bay area, is there a listing or org that the "Hard Money" groups belong to?
Hi Phil! Lots of good stuff, particularly interesting info on the transactional financing. One CAUTION TO INVESTORS using the "subject to" technique that I didn't see brought up in the comments (though I might have missed it): it may activate a due on sale clause in the mortgage contract. Sometimes banks ignore the due on sale clause if they are receiving their payments regularly, but sometimes they don't and they are well within their right to pull the plug on the deal particularly if they feel that the new owner is a lot riskier than the previous. I don't know what you would advise, but I don't like nasty financial surprises down the road, especially from financial institutions with good legal teams. I go with the "when in doubt: disclose, disclose, disclose" rule of thumb. How do you go about using "subject to"s while avoiding the due on sale clause?
Woodwindist This video discusses that topic at length: th-cam.com/video/lSXGxOiRp7A/w-d-xo.html Plus, anytime someone brings up concerns over due on sale clauses, I ask them how many times it has happened to them. I have yet to ever get definitive (not heresay) evidence that anyone has ever been bitten by the due on sale clause when the payments are made on time, ever, in 15 years involved in this business. And bare in mind this channel has over 5 million views so I have enormous exposure to a gigantic worldwide audience. Furthermore, we often take over deals whereby the borrower has deceased subject to and by federal law, if the payments are ontime, the bank can't call those loans due.
Phil Pustejovsky
Watched the video you recommended. Nice reference to Bigfoot. Thanks for handling that objection so well.
Phil Pustejovsky correct me if I’m wrong but didn’t Dave Ramsey had that happen to him and he lost 4 million in real estate because they pulled his notes
Sounds more like a commercial deal ..
13:25 how do you secure a contract with a home seller? if you cant find another investor who wants to purchase the home than are you stuck having to purchase the home? thank you for making these videos. im 23 and dont have anyone to really teach me this other than you and graham lol
Take this free video course: courses.freedommentor.com
I admire your passion for other people and rel-estate i would rather loose my own than some one else s in a heart beat. we r working on a rent to own on our first property in the geehto as u put it we are putting our own money into it along with the payments insurance ect. we r on a fixed income. we don't look to gain a profit from this house but a portfolio and home threw other property rehabs. we do all our own work. we are moving 8 hours away + from every one n everything we know do u have any advice thanks
Can I do the owner finance with a real estate agent? It's off market right now but I've already spoke to him about getting the house and I been tempted to go directly to owner
Good luck. Most real estate agents hate (or don't understand) creative financing.
Phil what kind of immediate expenses can I expect when doing a subject 2. What are the costs associated with this strategy from a buyer perspective? I have a retired man looking to sell his condo in the Dallas area and just wants to get out. If he would just turn the mortgage over to me what would be initial costs?
Depends. Are you closing with a traditional closing attorney/title company? Or are you closing by yourself with a notary? There are costs for recording the deed, at the very least
Hi Phil your Testimony on your Experience over the years with this Buissiness is so Powerful and I Really Enjoy your Segment and God Blessed me to see your Video as I was Looking at Another Video!My Self have good Credit and Looking to stop Renting and Own But im also Looking to Use your Method Because I Dont have Much Cash to Work with Right Now!Im going to Sign up to Take your Mentorship on Line so I can Learn more in the Mean Time and also in the Process Learn how to Gain some Financial Benefit from this as Well!Always was Interested in Real Estate but never knew How to go about it and Love to watch Flip This House!God Bless You For All Your Doing to Help others!
Phil, these contracts whi draws them up? Real estate lawyers?
Very interestesting, I am learning alot... Thank you for posting the Videos.
How do u do fast flipping using subject to funding/buying ?
Take this course: courses.freedommentor.com
Great video. I always enjoy learning something new about real estate. What you said about banking, however, is incorrect.
The way that fractional reserve banking works is that a bank can loan out a large portion of the money it has, and only has to keep a portion of it for any withdrawals that are made.
When the bank makes loans it creates a a liability for itself. It has to eventually pay back everybody that deposited into the system. The bank also makes an asset for itself because the debtors owe the bank the amount they borrowed plus interest.
If $100k is deposited into the bank, the bank may keep $10k available for withdrawals and would lend out the rest of the money. If the people that borrowed the $90k can't pay it back, the bank will go bankrupt because it still owes that money to the people who deposited it. Most people won't default and the 90k, however, and the money will eventually be deposited into the bank again, by somebody else, and will be lent out again by the bank.
When the first $100k was deposited, the bank has a liability of $100k. After a couple of cycles of lending, there may be have $900k of liabilities, $100k in the bank, and $900k+ in assets, and for the bank not to fail, it must get $900k back to cover the liabilities that it has created, plus some extra to cover operational expenses.
If somebody fails to pay back a bank somebody still loses money somewhere. If only a small fraction of people default on their loans, then the bank's profits are hurt, but it still makes money from the good loans.
If a large fraction default, and the bank can no longer cover outgoing expenses such as interest payments and withdrawals, then it will fail if another bank isn't willing to buy off its assets. It can also fail if everybody rushes to get their money back, since it has to wait for the assets to pay off, but can't wait to pay back the liabilities.
When a bank fails the people who deposited into the bank would lose their money, but they don't only because the FDIC insures banks. The people that deposited into the bank don't walk away unscathed, however, because the insured money has to be printed, and so the dollar loses value. In the U.S. if bad loans cause a bank to fail, then everybody that uses the dollar is affected by the bad loans.
Obviously it is still better to borrow from the bank than from a friends life savings. As long as the default rate is below what the bank can tolerate then the bank and it's depositors will be fine. The person that pays for it the most will be the debtor since their credit will be ruined. This calculated risk and protection from personal bad loans is of course why banks exist in the first place.
Banks are not bound by only being able to lend out their deposits. They can lend up to 10 times (or more) the amount of their deposits. They may be required to keep 10% of those deposits on hand for withdrawal, but they ALSO can lend up to 10 times (or more) of the total deposits.
Phil Pustejovsky That's interesting, and I didn't know that. I'll have to look into that a bit more.
Banks pay insurance on deposits, this is how the FDIC gets its funding. If you dont pay your bank back the bank takes a hit, they still have to pay back their depositors or creditors.
John Carter
Keep in mind that they are only lending 10% of deposits. So they would have to totally take a GIGANTIC hit of more than a 90% loss for the FDIC insurance to kick to cover depositors.
I am open to suggestions of what your strategy would be in this situation. What are the pros and cons of each?
That's a discussion that would far exceed the limits of this comment section. If you aren't working with a mentor who can walk you step by step through this, you might as well bite the bullet and spend the money to have a professional closing company handle it for you. You don't want to make mistakes, that's for sure.
Phil, how long does it take to build a strong relationship with your bank to the point were you can give them a call and they can write you a check to invest in real state? I own two properties but I had to use my first home as a colateral to purchase the 2nd one. I'm just a beginner at real state. Thanks for the great videos.
zach10Argento Never. Banks don't do that, ever. However, you may be able to build a relationship with a hard money lender or other private real estate lender that will do that.
I'm about to start flipping houses here in Texas within the next year and currently I'm gathering all the information I can to gain knowledge in this field. My two biggest questions would be, Where to go purchase the property to flip (what's a good amount for an first timer) and How can I find people to in vest in me so that I can purchase the property to flip?
Finding a great deal, regardless of the price, is the key. If you have a great deal, there is a TON of money resources to help you fund it.
I enjoy all of your videos and learn a lots from you Phil. I want to become a real estate investor. I have a dream to live free in the future. I will use your technics and your educations. Thanks a lots for all your times to share with us.
Phil, you are wrong about reserve banking. The bank lends $100, gets $40 back then it has to write of $60 off their earnings. The extra $90 is created by expanding the money market but it gets deleted when it is paid back, also the leverage is not as big as in the past anymore.
how can i get more info on the hard money lender in orlando???
+Todd Jones (Keywestchillin305) Google it
No idea. Sorry I couldn't have been of more help.
Hi Phil. I was curious about the "subject to" you talked about when taking over payments of a mortgage. I understand that the bank or mortgage company can take back the house (maybe just in certain states) if the owner of the house tries to sell it to someone else this way. Is that true and if it is how often does this happen?
The number of times a bank has exercised their rights to enforce the due on sale clause in our 15 years of experience of not only our own 1,000s of deals, but also the ones of others, is ZERO (unless the mortgage fell behind on payments).
+Phil Pustejovsky Thank you for responding Phil. That was very helpful.
Hello Phil. Baltimore,Md Investor/Wholesaler. When borrowing transactional funding what expenses would the investor usually incur? Am I only paying the 2 to 3% on the transaction funds? Does the Buyer pay both closing cost?
Phil your videos are great, i'm 17 from the UK I want to make my first wholesale deal this summer, however I could really do with a mentor. I was wondering if you have any links with mentors in england that could possibly help me?
Real Estate Investing is one of the few businesses that you can do on the side (evenings and weekends) because most sellers are home from work during those times. Head over to my website and apply to be my apprentice. Thanks for the compliments!
Phil Pustejovsky bi
What’s the hard money lenders name that’s in Orlando ? Anyone know
There are hundreds of them. Go here to find them: www.freedommentor.com/hard-money-locator
Hi Phil, My question is when you do a subject to ...when you agree to pay the mortgage does the person remove their name from the deed. And do you later refinance or set up the mortgage and put your name on mortgage loan ? Do you alert the bank and say surprise my name is on the deed and now i want to be on the loan for a possible lower interest rate?
The Deed transfer title to you but the Mortgage (or Deed of Trust or Security Deed)...aka the Security Instrument collateralizing the loan to the property, stays the same and doesn't change.
Typically, when you purchase a property Subject To the existing financing, you update the insurance policy which alerts the bank of the change.
Hi Mr. Phil, I'm a college student looking to get a real estate license in Texas. I go to SMU and therefore will be practicing in the Dallas area. How long do you think it takes for a new agent to make their first sell? My plan is to sell, save 30k, buy a foreclosed home, rent it out for 600-800 a month, and continue the cycle. This may take 2-3 years I know but I was wonder just how long a sell usually takes to get started. Thank you
Hey Phil how do you have a good structure or how should one look
p
Thanks for replying Phil,
I'm 22 and would like to start off earning a living in a field where I can have as much freedom as possible. Investing in general seems really appealing, real estate especially because of no money down options for beginners and huge tax benefits and all.
I currently live in one of the least tax- and legal friendly countries for real estate investors in the world. I like the US because of the diversity, language, climate, and the laws to name a few reasons. So why not!
Hey Phil, When using hard money, (buy, rehab, rent out for a long term hold strategy), do you ever know 100% that you will be able to refinance with a commercial mortgage (in my case) as long as it is rented out and the DSCR is greater then the banks threshold (1.25)?
Is anything ever 100% in anything in life?
I am so interested in this.Thanks for all the videos,I have just begun to watch them.I live in Muskegon Michigan and not much to choose from here as far as properties.I had knee surgery that failed and can't do my old job anymore and really loved your story of how you got started.I am not homeless but am behind on rent.No job as of yet either for I am getting older(50)And I live in a dumpy depressing trailer park .My 22 yr.old Son lives with me and it would be great to even find a house for us to live in.Our credit is bad but not for long since I have found that a simple letter works to the debt collectors..one down so far! Also the a4v works! Do you have any videos how I can find an investor to get me started? Thanks! It would be awesome to be able to just get the Mortgage and then pay it off in a couple months from my federal reserve account..Not many people know a way to do get a Mortgage without any money.Creative thinking! I did watch the no credit/no cash video..but like I said not much opportunity here and I wish I could move because I would.Thanks! Lori Beugnot..My son is Mckenzi..not sure why it came up in his name.
Years ago the banks did not allow people to assume a loan. Has that changed?
They don't. We take over loans Subject To without having to assume them.
Phil please do a video on how to turn a mediocre deal into a great deal.
Outside of this video: th-cam.com/video/wyooI5J91UM/w-d-xo.html you have very limited options for doing that. The best thing to do is to focus on great deals rather than trying to turn bad deals into good ones.
The Federal Reserve. And the where does the Federal Reserve get their money from? Thin air. Reading the book the Creature from Jekyll Island will reveal the truth behind the whole mechanism. Fascinating. For instance, the Federal Reserve is neither "Federal" nor a "Reserve". The Federal Reserve is not owned by the government. It's privately owned. I wrote a blog post on this subject on my website too called "The Truth Behind the Federal Reserve"
Hey Phil please give me your fatherly advice (LOL) I live in a city where the jobs are and i am paying rent. I am buying a house cash where no jobs are.The question is which is better buying the house and living there or renting it and keep paying someones mortgage?
Depends. What's your return on investment if you rent out the property you are purchasing?
If hard money lenders lend loan to value, how does one determine precise value of the property to make sure they are lending 65% of property value? I would consider this if I knew how to get an accurate value of the home, which I am sure the hard money lenders will do their due diligence on that end also.
TMB1974 An Appraisal completed by a 3rd party, non-biased appraiser.
Whats the best funding for fix and hold?
Regarding owner financing: How do you approach owners with this proposition? Do you just test the water and ask them if they are open to it? If not what is the best way to pursue them?
There is an entire process in which to best approach sellers so you get the maximum chance of success. It is partially explained in this video: th-cam.com/video/ahRvk6ggMy8/w-d-xo.html
Could you link that Federal Reserve video? I would love to see that.
Hi Phil I am very exited too have come across ,this and I am going too try this out ,one question the subject too offer ,do you have the document drawn up in the company name or in the trust ?
Depends on the state and the situation.
I been watching you videos for some quite time now, very good videos... I live in nyc and was thinking of starting rentals in NYC, was thinking about using my own savings and funding from banks. What do you think of the market for NYC for rentals for rookies?
shark tank, be very careful.
It just went on the market yesterday. Scheduled to see it this afternoon. I found out its a HUD foreclosure so govt owned now. I could rent the house for anywhere from $1200-$1500 based on others in the area. Will try to move on this fast. What do you mean by structure creative financing?
I own 5.5 county acres. On 1 acre I have my personal home. The other 4+ is separated by a creek and is heavily wooded. I want to clear the land and put a mobile home on the property that I currently own. I have payments( 6yrs) on this home and my son will rent the home. I also want to add more mobile homes (4) acres. I am limited on how many bc of septic tank laws. I am considering taking a real estate course (2wks) and final hrs to be licensed only to help myself do the best I can with the property. My goal is owning my own income rentals and separating the land from home as a business to protect my home. I also would like to develop more mobile homes and land til the income pays everything then more to houses. Mobile homes rent well here but has drawbacks...theyre mobile homes. Do you have advice on what information/education I need? Managed apts 25yrs ago. K
You are wasting your time if you go get a real estate license to help with your property. Instead, go spend a day at the city or county planning commission and learn the rules and regs for subdividing land, adding mobile homes to land, etc.
Thank you for your fast response. I got some good information out of your videos. I will follow your advice. I really didn't see how real estate course would help but would like it to be a success not a life altering disaster! thanks kuddos to u!
Hi Phil!
Can I come over from Sweden and become a student of yours? I've seen most of your videos twice and I'm reading your book for the second time, so it feels almost like I know you in person :). Is it possible to be mentored face to face by you or someone from your team in other states than Florida?(it climate seems so hot down there) If not, do you know any other open-minded investing mentor in the US who you could recommend?
Thank you for all what you share!
ok so my parents want to buy a home but they have very little saved up not enough for a downpayemnt. They are both disabled but only one gets disability. Their credit is not good ..... so how can they buy a condo or townhouse ? I know about owner financing but its so hard to find one ... oh and how do you find a hard money lender or a transactional lender?
Ivana Chuljak-Cribb Why buy? Why not rent? See th-cam.com/video/IomfI_iF4EM/w-d-xo.html
Well because my parents believe that its a good way to invest their savings as well as mine. Actually here in Charlotte to rent a decent 2bd 2ba apt in a decent school distirct is $1200 for that money you could have a brand new home or townhouse.
Phil Pustejovsky good info on hard money lenders!!
Thank you Phil for all the great information.
How much should I expect to spend or plan to spend on my first project?
I don't know.
So can i sell the home i reside in that is in preforeclosure to one of the real estate investors looking to buy it so i can take the profit to find a place to live? If so how do i do it.
Better yet, work out a loan modification with your lender and stay in your home. Why sell?
@@freedom_mentor because the quit claim deed that was given to me with the intent of me securing the rights to the home had an error in the property description so the appraiser's office sent it back to the original mortgage holder but to a wrong address so no one was aware of this until it was too late now the original holder is deceased from a tragic car accident so even if I amended the deed to fit the proper description he is not here to sign it and the executor of the estate is halfway across the country with stage 4 cancer and a quarter percent less of his heart working. I just have no more money left for lawyers or anyone else I fought the good fight for as long as I could unless you have another option for me oh great real estate guru I'm at a loss and really really need some assistance
@@marleahunter4809 If you don't have clear title to the property, then you can't sell it. Also, the lender will have trouble foreclosing due to this title defect. You may be able to ride this out and live for free for a long time. Hire an attorney to help you.
@@freedom_mentor I have exhausted my resources I had a lawyer that cost me quite a grip and he is no longer with us. Unexpected heart attack. Now I'm back at square one. Is there somewhere I can turn to educate myself or any hard lenders here in Florida that u know of that may be willing to pick up the property and allow me to rent to own from them.