The Strategy of “Subject To” is becoming more and more popular every single day. Basically, this strategy works as follows:
When you find a property that has an affordable mortgage in place, it is possible to take title to the property subject to the existing mortgage. The term subject to is meant to state that the current mortgage remains in place, even though the deed transfers to the new owner.
Many notes these days have what they call a “Due on Sale” clause, which basically means when the property is sold, that the note must be paid in full. Larry discusses how this is not a law per se, yet agreement between lender and borrower. In many cases, the bank will allow the transfer to happen, especially when they fear the current owner may default.
There are other instances where the banks will not allow the transfer of deed to occur without calling the loan due. When a bank calls the loan due, they demand the full balance be immediately paid to the bank to satisfy the mortgage.
One of the benefits of attending Larry’s Never Step Into a Bank Again Bootcamp is that you will learn how to avoid using the bank at all. When you avoid the banks, you can do more deals, with less headache and more profit. Want to learn more? Go HERE
This week on the Real Deal Podcast, Larry Harbolt discusses the importance of financial discipline. Larry tells the story of “Take a Millionaire to Lunch” where he does just that. It was out of the box thinking such as this that helped Larry learn the skills necessary to be successful as an investor.
Larry discusses taking the time to build a relationship with those who are more successful than you and by doing so be in a position to ask them question that will help you learn. It has been Larry’s experience, that if he simply asks, others will simply capitulate by answering his questions.
Time is a precious commodity, when taking the time of those more successful than you, be respectful of their time, being sure to be on time, and keep your phone OFF. There is a difference between being appreciative and being overbearing. When the other party is speaking, you should spend most of your time (70-80%) listening, and only the remainder talking.
It is meetings like these, that can become the most important meetings you will attend during your investing journey. Be sure you bring a notepad to keep notes, and be sure to pick up the check!
It is important to think like the rich think. “Money” is simply a tool, nothing more, nothing less. Just because a bank is willing to make a loan, does not mean that the loan makes sense for the investment you are considering. Take the time to calculate the costs, in addition to the interest rate and never forget to understand the terms and how it will impact your investment.
Have you ever wondered why some investors are successful while others struggle to make money from the deals they do?
Their secret is knowing how to analyze every deal to separate the good deals from the bad deals. In this episode of The Real Deal Podcast Larry Harbolt discusses the how and why of breaking down the deal.
This week, Larry "The Real Deal" Harbolt lays it all down when talking about who you should be taking your advice from.
In the real estate world, we often get handed lousy advice from those who are not in the business; but also are clueless about it. Larry gives tips on how to choose which educational systems you should focus on and who you should consider getting advice from.
Later, Larry addressed the topic of being in a rush to buy a bunch of units or do a bunch of deals. This type of "rushed" behavior leads to almost certain financial disaster. Tune in and learn from the best, Larry Harbolt.