This content was created by Joe Homs 949-625-4533. This content was uploaded by Joe Homs 949-625-4533. This is a YouTube video titled "Can You Assign Seller Finance and Subto Deals | Wholesaling Real Estate" (published 2023-05-31) featuring Joe Homs 949-625-4533 as the sole presenter. The content is an instructional real estate video for wholesalers and investors covering creative financing strategies—explaining "subject to" transactions and seller-carried financing, how to assign contracts and collect assignment fees, what end buyers seek (move-in-ready homes and low interest rates), risk mitigation (working with experienced escrow/title contacts), and practical tips for structuring deals. The presenter also includes calls-to-action (Calendly booking, like/subscribe) and links to further videos.
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Seems with the rise of interest rates, a lot of investors are looking for a creative finance deal to forego the banks and work directly with the seller. If you're a wholesaler, knowing this can help you focus your efforts on these type of deals and assign them to an end buyer. But how exactly do you do this? Before we jump into it, I want to remind you that I'm always here to help. If you need more one-on-one experience, please book some time with me. You can find my Calendly link down below. Welcome back to the channel. I made this channel for the and experienced investor. Those of you who want to live the life you've always wanted through real estate. Make sure that you like and subscribe and share this video with your friends. Number 1, understanding seller financing and subject to. Let me take subject to first. So that is literally subject to an existing loan on the property, and you're going to basically walk in to the seller's position, fill their shoes, and start making that mortgage payment to the first, the second, however many are in there. If there's more equity in the property and the seller is willing, they can do seller financing on top of that subject to. Or if they want to do seller financing, the property is free and clear, For example, we like purchasing mobile homes for $100,000, $150,000, and we like asking them if we want to do seller financing for a short period of time because we go in and rehab them and sell them. So we like to ask them if they want to do seller financing for a period of a year. And in that case, we put a little bit of money down, the seller takes back a mortgage on the property, becomes the bank. We pay them interest on that mortgage. We go in, we rehab the property, we sell it, and we pay them off at the end of the day. Do you like these type of videos? Do me a favor and hit that like button. Let's talk about the art of assignment and assigning a property once you have it under contract with either a subject-to deal, seller financing deal. Let's say you don't want to do anything else but sell this off as quick as possible. So you need to use an assignment contract. You have a contract, a purchase agreement with the seller that you're purchasing the property, and now you have a buyer coming in and you're going to assign this buyer the rights that you have under the purchase agreement. Okay, so So 2 different contracts, assigning it, and then you're making your money in between by charging an assignment fee. Always think like an end buyer. What are they looking for? Most buyers nowadays, I can tell you, they pretty much want it completely fixed up. I put houses on the market and sometimes they're fixers. And I currently have one. It's in really bad shape and it's just honestly, it's just sitting there. I told the client it's priced a little bit too high and it's sitting there and it's not getting any showings. Today, in today's market, most people want that place fixed up so that they can literally walk in, set their furniture down, and call it a day. An end buyer is always looking for Creative financing. And the reason that I like to use subject to or seller carryback financing— interest rates are currently about 6.5%. A lot of these properties were purchased when the interest rates were very low, down at 3%. And if you can take a loan over subject to at 3% or have a seller carry back something at 4% or 5%, That is very attractive to an end user. So think about those things when you're putting the deal together. Mitigating risk is always important and should always be top of mind. You need to have a good escrow and title company that you're working with. And I'm not talking about the companies, I am talking about the people themselves. You need to have a relationship with these people so that they know when you call and you're trying to put a deal together, they know that It's serious and this needs to be done in whatever timely manner you need it to be done with. And they also need to be knowledgeable. So you don't want to, like, I always like to say, do you want to work with a brand new real estate agent that just got their license yesterday? Or would you prefer working with me that have had my license for over 40 years? That's up to you. Do you want to go see a heart surgeon that has done one heart surgery? Or do you want to see a heart surgeon that's done hundreds of heart surgeries? So again, it's up to you at the end of the day, but I'd go for the experience. Assigning seller finance and subject-to deals can be a game changer in your real estate journey. If you enjoyed this video, hit that subscribe button and be a part of the community. Don't forget to like this video and share it with other real estate investors. If you want to learn more about creative finance, click on this video right here. Feel free to reach out anytime. I'm always here to help.
