Hi Friends,
The rising foreclosure rate is staggering. I read today that in some counties in Colorado 1 in every 86 homes is in foreclosure. It's so hard to imagine. How can so many people be losing their homes?
I was talking with another educator yesterday and he said there is a Bill on the table right now to outlaw "subject to's" in the entire country. I would hate to see that happen because that is how we take our rentals. Whenever you hear of anything like this - do something about it. We are planning to support a lobbyist who is going to bat for investors nationwide. Sadly, we have no real voice in Washington. As I get more information, I'll let you know what you can do to be part of the solution.
Speaking of subject to properties... this is how we get most of our rentals. We have the homeowners deed the property into a "Land Trust" and then we become the beneficiaries. We have an attorney who is our Trustee. As beneficiaries, we are the owners of the property. Many people don't understand what a land trust is and how it works.
The deed is filed into the name of a land trust - instead of into YOUR name. That deed is filed at the courthouse and the land trust is now the new owner. The actual land trust itself is a document kept by you. In the document it states who is the trustee (the person who represents the land trust) and who is the beneficiary (the owner of the trust and; therefore, the owner of the property). The land trust document is NOT filed. It is kept in your hands. This is why the bank does not realize that the title changed...people are allowed to put their properties into an asset protection entity without calling the "due on sale" clause.
We name the land trust the property address. So, if we were buying a property located at 123 Elm Street. We would name the land trust - The Elm Street Land Trust. The bank assumes that the homeowners put their property into a trust for asset protection. If I named the trust - Bill and Dwan's New Rental - it would raise red flags. The new deed now states that the Elm Street Land Trust is the new owner. The ONLY document filed at the courthouse is the new deed. The actual land trust remains in your possession, naming you as the beneficiary...get it?
By using this method, we are able to take all our rentals without ever raising any questions with the banks. By taking over the homeowners payments, we don't have to qualify for new loans every time we get a new rental. With this crashing market, taking over properties subject to is the best way for you to accumulate wealth without having to use your own money.
I keep telling everyone - if you have the means to keep rentals right now - do it. Properties have never been so cheap. Take a look at my youtube pictures. There is a cute, little white house. We just got a new tenant for $600 a month - moving in June 1. The payment is $233. How crazy is that? It's a great deal for everyone. Part of the reason we are going to start doing boot camps in Iowa is to expose you to some of the amazing deals we are getting.
As more people lose their homes, they will need to rent. You can fill a need as well as help homeowners get a fresh start. What can be better than that?
OK, I have to run. I am doing a live call in 20 minutes...hopefully you will be tuning in.
Have a Blessed Day,
Dwan
www.youtube.com/dwanbenttwyford
About Me
- Dwan
- I started as a single mom with NO money, NO experience, and NO real estate license. I have been investing in foreclosures for almost 20 years and am considered one of the nations foremost experts on short sales, foreclosures, and just about anything related to real estate investing. My goal is to help you to become a superstar!
Thursday, May 15, 2008
Subscribe to:
Post Comments (Atom)
1 comment:
Dear Dwan,
I am a real estate investor who several years has done very well. I am a buy and hold investor as well as I too enjoy sharing and educating.
Along the way I had purchased rehabbed and then refinanced. This became my income and artificially produced a very high income I became accustomed too.
Last year when the lending business changed overnight, my income was gone...who moved my cheese? Since then I have gone back to work in the industry I was in prior to becoming a fulltime investor. I have to say I love the work and the people, and yet I love the freedom being self employed gave to me and my beautiful wife.
Unfortunately, I also had a property manager who has been less than 100% ethical. I have a total of 64 properties, of which 19 are building lots. The majority of my rental are with this one PM company.
So I recieved a double whammy wake up. Instead of me getting my 14-15k per month I began getting 1k-2k per month.
I then began a short sale process to sell my properties. The real estate agent took so long to do their job (third one hired to do the short sale) that the properties are now being foreclosed on.
I am reading your book, which I recieved when I attended a seminar in December.
It is renewing my strength and confidence. And now with reading your subject to, and using land trusts to take possession of your rentals, this will be the direction I head.
I am inspired and re-commited to get back to rebuilding my real estate, and your blog, your book and the stories within have been a direct catalyst.
God Bless you and thank you.
Post a Comment