A Subject-to Deal, whether you’re doing a flip or keeping the property as a long-term hold, is an incredibly creative way to fund your next real estate investing deal.

So what, exactly, is a Subject-to Deal? Usually, when you buy a property, at the closing table, the property’s title transfers to you and the seller’s mortgage is paid off. With a Subject-to Deal, the title still transfers to you, BUT the seller’s mortgage remains in place and you agree to make the SELLER’S mortgage payments on the SELLER’S mortgage for the SELLER!

Is this the same thing as a loan assumption? Nope! With a loan assumption, the seller’s mortgage transfers into YOUR name. With a Subject-to Deal, the mortgage remains in the SELLER’S name!

Subject-to Deals must be illegal, right? Nope! Look on any HUD-1, lines 203 and 503. What does it say? It says: Existing loan(s) taken subject-to. Did you know that for decades, on every HUD-1, there’s been a pre-printed line for Subject-to Deals?

If you’ve not done a Subject-to Deal, you’re probably saying, “No seller would EVER agree to it!” Are you sure about that? Are you willing to bet the ranch on that? Truth is, Kim and I have been doing Subject-to Deals since 1998 – our ranch is a Subject-to Deal!

At February’s meeting, we’ll show you WHAT a Subject-to Deal is, HOW it works, the RISKS and REWARDS, and most importantly of all, WHY a seller would agree to do a Subject-to Deal! We’ll do this by using real-world examples of deals that we, and a number of other investors, have done.

North Georgia REIA is passionate about your financial freedom. We want you to live your…

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How to Work Foreclosures

Kim and I have been buying foreclosures since 1995. Over time, we’ve built a unique system that’s very effective. It has allowed us to buy tons of properties pre-foreclosure, at the auction and from banks after the auction. Today, I’ll explain how we work the pre-foreclosure market. Next week, we’ll discuss how to buy at the foreclosure auction.

When it comes to foreclosures, our best deals come from buying pre-foreclosure! At the foreclosure auction, there are always investors willing to work on much thinner margins than which we’re comfortable.

On the other hand, when buying pre-foreclosure – that is, before the auction – there’s very little competition. Why? If a homeowner is facing foreclosure, because of unfounded fear, few investors will knock on a homeowner’s door.

There’s another BIG benefit to buying pre-foreclosure. Since you’re buying from the owner, there are many more creative deal-structuring tools you can use to construct a win-win deal. If you buy at the foreclosure auction, there’s only one tool – a big dang hammer…CASH! There’s no creativity, beauty or…

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Sue Stanley’s Barbershop: How to Run a Successful Business

What can you learn about running a successful business from Sue Stanley and her Ye Old Barbershop in Adairsville, Georgia? In a word: Everything!

There are two ways to learn how to run a business: You can go to college and major in business, or you can spend time with someone who’s been running a successful business for decades. I believe the latter is a better, faster, more effective way to learn.

For a business to succeed, the owner must keep his/her net profit as close as possible to his/her gross profit. In other words, don’t let your expenses eat up all your profit. There are thousands of failed business owners who were bringing in money hand over fist, but their bills were flooding in even faster! The result? Because there wasn’t enough profit left after the bills were paid, these businesses went Tango Uniform (a.k.a. toes up)!

Sue is an example of a person who knows how to run a business right. She operates the oldest, continuously-run-by-the-same-person business in Adairsville. This means she has longevity and is a very smart businesswoman to boot!

Want to know some of Sue’s secrets?

When Sue took over the…

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Learn From The Best Real Estate Investing Teachers

Pete Fortunato (on left) & Dyches Boddiford

After last night’s real estate investors meeting, a guy new to investing said, “I’ll never be as good at creative deal structuring as you, Bill.’’

I get this a lot. Here’s the thing: Because I’m VERY dyslexic, in school, my report cards were loaded with C’s, D’s and F’s. In other words, I’m not the brightest bulb in the pack. Most everyone reading this – except for Larry Brunner – is a good bit smarter than me. I’m proof that you don’t have to be smart to succeed at real estate investing. The key is – and always will be – getting face-to-face with sellers on a regular basis!

This new investor is seeing me decades into my real estate investing career. He’d have a whole different opinion if he’d met me twenty years ago!

In 1995, when we first got into real estate investing, Kim had three jobs: She cleaned houses, hung wallpaper and worked at her dad’s pawnshop. I had two jobs: I sold Electrolux vacuums door-to-door and worked at Home Depot. What we knew about real estate would fit in a thimble.

At the beginning of 1998, I became a full-time real estate investor. In the three prior years, Kim and I had done a whopping four deals – not exactly world-beaters, were we? We knew NOTHING about creative deal structuring or funding!

The first big-league real estate investing course I took was Dyches Boddiford’s Advanced Strategies Conference. That January weekend, I understood Dyches when he said, “Let’s get started.” Then, “It’s time for lunch.” And finally, “Thanks for coming.” Everything in between those three statements was a complete…

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January 8th North Georgia REIA Meeting Info

Nothing can drive a real estate investor to the poor house faster than a rehab gone bad…and talk about losing one’s cherub-like demeanor!!!

I know two investors who partnered on a deal in June 2014. They bought the property for $25,000. They estimated the rehab would cost between $25,000 and $50,000, and take about six weeks to complete. That rehab is still going on – 6 months later! Oh, and the rehab expense now sits at a whopping $85,000! Here’s the really sad part: The investors are related – their strife caused the family to cancel Thanksgiving AND Christmas! All because of a rehab gone terribly bad!

Think this can’t happen to you? Think again! A rehab can go south in the blink of an eye! Your rehab is going along just fine – on time and on budget. Then suddenly you find yourself chin deep in a pit of quicksand – and sinking fast! It’s a terrible feeling…but it can be avoided!

Due diligence – before you buy a property – is what keeps your deal safe! Constant tracking and follow-up during the rehab keeps you out of the proverbial quicksand.

A good example of a lack of due diligence is the above deal. When I asked the investors about their estimated cost of rehab, they said, “Between $25,000 and $50,000.” That’s a $25,000 swing! There’s no such thing as a $25,000 swing when estimating a rehab. You’ve got to know your…

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How to Make the Impossible Deals Possible

Hamilton Crossing

Every month, within 5 miles of your home, there’s a $15,000 net-profit deal to be had. The hard part is finding it, and then knowing how to creatively structure it into a big-profit deal. There won’t be a large sign in the yard that reads: Stop Here – $15,000 Deal Inside!

A common mistake made by many would-be real estate investors is to run a We Buy Houses ad, and then sit back and wait for the phone to ring. A truth: The phone rarely rings! Because of this, most new investors go out of business long before they find their first deal!

To succeed at real estate investing, you must get face-to-face with sellers on a regular basis. The fastest, cheapest and most effective way to accomplish this all-important task is to simply knock on sellers’ doors and ask why they’re selling.

In addition to door-knocking, you must continually learn creative deal structuring techniques from experienced real estate investors. The best creative deal structurer I know is Pete Fortunato. With nearly 50 years of deal-making experience under his belt, he’s the best there is!

To show you how to make the impossible deals not only possible, but also very profitable, let’s look at one that Kim and I just completed.

In early October 2010, I was knocking on sellers’ doors in a nice subdivision off…

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“Impossible” is a Human Invention

Robert Schuller came up with a great quote in 1973: What would you attempt to do if you knew you could not fail?

As 2015 begins, after finding yourself a quiet place to write down your goals, place Mr. Schuller’s quote in front of you. Next, with each goal you put to paper ask yourself: If failure is impossible, is this still a worthy goal for me to pursue?

At the beginning of each January, many of us make goals – they’re called New Year’s resolutions. This flood of goal setting is evident by the huge increase in the number of folks in the gym, and also by the number of people reading self-help books.

Sadly, by February, we’re back to seeing just the regulars working out – with the exception of two or three new people who’ve gutted out the pain and…

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Let a Rental Property Pay For It

As you probably know, December 15th was the last day to sign up for a 2015 medical insurance plan – a plan that must now comply will all the requirements of Obamacare.

For the past ten years, Kim and I have used an HSA (Health Savings Account). This is a savings account used in conjunction with a high-deductible health insurance policy.

Our 2014 policy cost $544 per month ($6,528 per year). Several weeks ago, I got a bill for our 2015 policy. The new price for our same policy skyrocketed by 113% to a whopping $1,160 per month ($13,920 per year)! WHAT?!?

Thank you President Obama – and all the members of Congress – who made Obamacare the law of the land…and then put the IRS in charge of enforcing it! What can possibly go wrong?

This column is NOT about politicians. It’s about how Kim and I will pay for our health insurance – insurance that we can no longer afford.

First, starting in 2015, we’re dropping down from the plan we have (and like) to a cheaper, lesser…

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It’s So Easy to Quit!

When we got home from last night’s North Georgia Real Estate Investors Association meeting, I said to Kim, “That was our last meeting. Only 63 people cared enough to show up. To heck with the REIA; I have better things to do with my time than to teach folks how to become successful real estate investors!”

Kim, to her credit, just let me rant and rave for a few minutes to blow off steam. As we went to bed she said, “Of the people who did attend tonight, how many do you think you helped to become better, smarter, wiser real estate investors?”

Next she asked: “Do you think your teachers – Jack Miller, Pete Fortunato and Dyches Boddiford – have always taught to a packed house?”

Finally: “Bill, by teaching folks how to achieve financial freedom by investing in real estate, if you make a difference in just one person’s life, is it worth it?”

After a good night’s sleep, I awoke this morning thinking about how easy it is to quit something when you get discouraged or the going gets tough. A few years back, I made 297 written purchase offers in a row without getting a…

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What is the December 11 Meeting About?

At December’s meeting, we’ll discuss two topics. The first is an incredible deal structure called a 121 Deal. This is a simple way to structure your next deal so that you’re able to earn up to $500,000 TAX FREE every two years! This is about to become the primary way Kim and I structure our primary-residence deals!

Next, we’ll look at notes. Few people read a note before signing it. For those who do, most don’t understand what they just read – and yet they still signed!

Notes are an incredible deal-structuring tool that allows you to make the impossible deals not only possible, but also very profitable!

Here are two examples of creative deals we’ve done using notes – one buying, the other selling a property.

In 2012, we wanted to buy a 4/2 brick ranch to keep as a rental. The seller wanted $85,000. We didn’t have $85,000. The seller agreed to accept our $83,000 note (we gave him $2,000 down), with 360 monthly payments of $417 at 4.43% fixed interest. We picked up a great rental with payments we could afford, and the seller got…

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