Q & A

MAPS Questions & Answers: I’ve gotten tons of questions via email and other article posts so I wanted to put them all in one place.  I hope you find these valuable and feel free to post your own questions.  (Click on the “comments” link at the top or bottom of this post and all the posts will open up for you to view.)

  • Robert Delgato

    How do you deal with the non-assumption and due-on-sale clauses on 99% of all mortgages created since the late 90s?

    “Not telling the lender” is not a viable strategy, and if you are a licensed broker (such as yourself) it puts your career and future in real jeopardy.

    I’m not a nay-sayer. I’m just looking for realistic answers to the question.

  • Dani Lynn

    Hi Robert, great question. We educate and disclose everything about the due on sale clause to both the buyer and sellers whenever we do any of these transactions. We even go so far as to sign disclosures upon contract and at closing.

    I have spoken to a couple attorney’s about the options our clients have if a due on sale clause did arise and they have been kind enough to talk to our clients about those options.

    I am not in fear of putting my career in jeopardy due to how I handle these transactions. It is very important to me to help these buyers and sellers, but do so with full disclosure of the transaction so that I keep my license protected.

    I will add this as well, we have a few attorney’s who close these transactions here in the Austin area. One of them has closed over 300 deals and as far as I know, has never had a due on sale clause occur. The attorney I work with had the note called once because the buyer stopped paying and didn’t notify the seller.

    We have put systems in place when we do our transactions that everyone sees all payments every month and the sellers know to call us immediately if the buyer stops paying.

    I don’t want to drag on about this but I want to be thorough in answering your question so I will add that a few investors in Austin actually do notify the banks about the sale. One person had a not called due but the buyer just kept making payments on it and the bank never pursued the issue. The buyer has now been there over a year, payments are on time and all is well.

    The risk is always going to be there but if you put certain systems in place and are prepared to take action if the worst happens, I think we are doing a pretty great thing for these sellers who have no other option but foreclosure.

  • I’ve been asked a lot of questions via other articles I’ve written and through emails so I am going to post the questions and answers here for everyone to benefit from:Robert Delgato asked:How do you deal with the non-assumption and due-on-sale clauses on 99% of all mortgages created since the late 90s?”Not telling the lender” is not a viable strategy, and if you are a licensed broker (such as yourself) it puts your career and future in real jeopardy.I’m not a nay-sayer. I’m just looking for realistic answers to the question.

    • Hi Robert, great question. We educate and disclose everything about the due on sale clause to both the buyer and sellers whenever we do any of these transactions. We even go so far as to sign disclosures upon contract and at closing.I have spoken to a couple attorney’s about the options our clients have if a due on sale clause did arise and they have been kind enough to talk to our clients about those options.I am not in fear of putting my career in jeopardy due to how I handle these transactions. It is very important to me to help these buyers and sellers, but do so with full disclosure of the transaction so that I keep my license protected.I will add this as well, we have a few attorney’s who close these transactions here in the Austin area. One of them has closed over 3000 deals and as far as I know, has never had a due on sale clause occur. The attorney I work with had the note called once because the buyer stopped paying and didn’t notify the seller.We have put systems in place when we do our transactions that everyone sees all payments every month and the sellers know to call us immediately if the buyer stops paying.I don’t want to drag on about this but I want to be thorough in answering your question so I will add that a few investors in Austin actually do notify the banks about the sale. One person had a not called due but the buyer just kept making payments on it and the bank never pursued the issue. The buyer has now been there over a year, payments are on time and all is well.The risk is always going to be there but if you put certain systems in place and are prepared to take action if the worst happens, I think we are doing a pretty great thing for these sellers who have no other option but foreclosure.

  • Ryan P asked through a one of my hub pages articles:

    Hi Dani,

    I think it would be tough to have the sellers attorney on board with this type of transaction. Have you seen this to be an issue and what did you do to convince the demonstrate to the attorney so he was ok with having his client (the seller) proceed forward?

    thanks,

    Ryan

    • Hi Ryan,

      I have not done a mortgage assignment where the seller had their own attorney who strictly represented them. I imagine as I start marketing to the luxury market, I will come across this more often.

      However, I’ll respond 2 ways:

      1. If I were to encounter this situation, I think it would be important to speak with both the seller and their attorney at the same time and discuss the reality of the situation.

      Most of the time, these deals are done because there is no better alternative for the seller. So if that were the case in this example, the sellers choices are short sale, foreclosure or a mortgage assignment.

      Yet, short sale may not be an option either. I happen to be working with a couple sellers where short sales are not an alternative. Their house value is right at the point where they can’t get approved for a short sale but also can’t sell it and be able to pay the costs associated with doing so.

      If the seller’s attorney can’t think of a better alternative for their client either, then I think the discussion opens up a little more.

      2. I might even consider bringing in my closing attorney to speak with both the seller and their attorney. I’ve found that many real estate attorneys who don’t work in owner financing don’t have the experience they need to truly offer good advice.

      Ultimately, what’s best for the client is always what we’re trying to aim for and sometimes the best thing is simply the least-worst alternative.

      • Ryan P. replied:

        Great reply Dani.

        One more question to pick you brain a little. Here are a few concerns I’m sure most sellers would have.

        -Having there name attached to the mortgage for an extended period of time

        -Potential of facing foreclosure again if the sellers default

        -Having the buyers refinance so they can be completely relieved of the situation

        As you’ve mentioned in other posts, there are potential risks in all types of real estate investing. I know you would explain to the homeowner the above possible outcomes, but what do you do to try and get the buyers to refinance and put the mortgage in their name as quickly as possible? Many homeowners I deal with want the situation to be done with as quick as possible. I’m sure they wouldn’t want to relive the foreclosure scenario 3/5 years down the road if the tenant buyers default.

        Lastly, I’ve been trying to research Phil Groves program on the mortgage assignments. Any way you can provide info of where to obtain more info or purchase a course?

        thanks,

        Ryan

        • Hey Ryan, good questions, I can see you are doing similar transactions yourself so mortgage assignments seem to be right up your alley.

          You are right regarding the seller concerns. Here’s what I do with my buyers:

          1. Hook them up with a lender and credit repair company

          2. Advise all parties to use a third party servicing company to handle monthly payments and report to the credit bureaus on behalf of the buyer. This helps the buyers credit improve that much quicker.

          Obviously, we can’t hold the buyers hand but doing the above 2 things gives the buyer a higher chance of success to get that refinance done as soon as possible.

          In response to the sellers wanting to get our of the situation as soon as possible, here is what I say….

          “Even if the worse case scenario happens and the buyer defaults and you get the house back, here are your options:

          A. Call me and I’ll find another buyer and we’ll do this all over again.

          B. 5 years down the road may mean we are in a better market and now you have 5 years of built up equity you didn’t even pay for so we might be able to sell the house traditionally.

          C. 5 years down the road, you may very well be in a better position financially, you may want the house back or you may want to keep it as a investment property.

          But whatever choice seems best at the time, is still a better choice then letting it get foreclosed on now or then.”

          Lastly, Phill’s MAPS program is in it’s LAUNCH phase right now. Have you seen the first video? I’m not sure when the shopping cart will open but probably in the next week or so. If you go to my review blog, there is a button on the home page that will take you to the launch videos.

          Keep an eye on my blog as well, my team and I are going to offer some bonuses to the course if you purchase it through our review page. We are compiling a list of things that would have really helped us when we first started doing these and we hope it will help everyone really take off and make some money fast by getting deals done quicker because of the tools we passed on.

          Hope that helps answer your questions!

          Dani

  • Question From Vincent:
    Dani – Is MAPS a standalone course by itself? If so what is the cost? Is it taught by you or Phil?

    I have been to the boot camp that covered the different strategies, including the MAPS program.

    • Hey Vince,

      MAPS is going to be a standalone course and it goes into a TON more detail about mortgage assignments than what is covered in the RE-Volution course. The reason Phill made it a standalone is because of all the 12 strategies he teaches, this is the one that is really taking off in this market so he wanted to be able to dig into it a lot more so investors/realtors could get out there and start doing them.

      I don’t know the cost yet because he is adding in a TON of stuff with the course itself and I haven’t even been told everything yet because they are still working out the final offer.

      It will be taught by Phill but he and I are launching a new coaching program in the next few weeks, so please stand by!

      If you are really serious about doing Mortgage Assignments, there is no better way than to get a coach so you can bypass all the short cuts and make money faster. That’s what I do everytime I learn something. I buy the course and I get involved in whatever mentorship or coaching program there is. For me, this holds me accountable and gives me access to people I can ask questions too while I’m just starting out so I can bypass the steep learning curve.

      I think that having someone you can call to help you evaluate a deal, overcome objections, help with the presentation or just just help understand how to write up the contract makes it easier to start doing multiples deals quicker.

      I am also going to offer some extra bonuses for anyone who purchases through this page. We are still deciding on those too but we keep going back to what would have helped us most when we started and it’s things like marketing templates, scripts, business plans, etc… Feel free to reply with more ideas….

      We are going to hold a webinar before Phill opens up the cart to talk about the bonuses and also do a Q&A for anyone who still has questions and wants some third party answers from people who have been out there doing these deals for over a year….

      To get invited to that webinar, I’ll try to post it on the web page but to ensure you don’t miss it – sign up for the free confidential report and that will get you on our bonus list and webinar invitation list.

      Hope all that info helps!

      Dani

      • Reply from Vince:

        Dani,

        Thanks for your quick response.

        I am a real estate broker and understand the mortgage assignment concept and agree that it will be huge in the current market. I have two other agents that are interested in the MAPS program that have also been through Phil’s boot camp, but need some help with marketing. Is that something that you can help me with? Not sure if you are taking on any mentor students?

        Let me know when you get a chance.

        Best regards,

        Vince

        • Good morning Vince,

          Thanks for your patience in my reply. I am feeling a little better today – enough to try and get some more work done anyway!

          The bonuses that we are offering with the MAPS program if you purchase through our website will absolutely help you with marketing. I gave one of my agents all of my marketing stuff and told her exactly what to do and her phone is ringing off the hook.

          She got a MAPS deal under contract on Friday, we have an offer that looks like will be accepted today and another MAPS deal on Monday and she started marketing for it Thursday and we have a ton of showings and hope to have it under contract after this weekend. (My agent is Tracee – not sure if you saw her video on the success stories tab…I am posting another video of her today of updated stats on her leads / deals.)

          As far as mentor students, Phill and I are launching a new coaching program in the next few weeks so stand by for news on that.

          Hope that helps!!
          Dani

  • Email I received from a local agent here in Austin:

    Hello , Dani i hope you find yourself well. My name is Adolfo with Casa Grande Realty ,i think i had a conversation with you one time over the phone in the past regarding one of my clients , anyway I went over all of your videos ,VERY interested, i just wanted to see if you can help me with some questions that i have ,since i’m really interested on doing this.

    I tried to contact you over the phone ,but i know you’re always busy,this is why i’m using this via.

    1. What type of contract do you use for mortgage assignments? TAR?

    2 Who pays for all the rear payments on a default mortgage?

    3. Do you take over properties with ARM’S Mortgages?

    4. What do you with a signed contract if you can’t find a buyer? Do you put an option period time?

    5. Do you put your name on the contract or do you use a land Trust or what is the process ?

    6. What is the process of taking ownership for the seller?do they have to use a Title company or not necessary?

    7.Are buyers willing to take over a property that is worth less than market value?

    8.Do we have to pay our brokers for our profits?

    9.Will it be a good idea to built your own portfolio of properties that are worth less than market value?

    10.Do you tell the seller that you are in fact going to find a buyer and then assign the contract to somebody else or you just worry about having a contrct signed with subject to existing loan and the assignment option?

    11.How do you present the contract to the buyer;do you tell them ok,i’m buying the property for this amount of money from the seller and i’m selling it to you (buyer) for a higher price, don’t you get a rejection if its done this way or even if tell them that they have to pay you a fee or how do you presen it?

    Thank you,Thank you VERY much for your time Dani.

    • Hi Adolfo,

      Yes I remember you and I’m glad to see you are going to start doing mortgage assignments here in Austin. The more people we can get on board, the more houses we have available!

      I am going to be very brief in my answers here because the questions you are asking are very detailed and have far too many variables to answer in depth.

      1. I use the MAPS contract and the TAR contract.
      2. The buyer typically pays for any arrears.
      3. I don’t personally take properties on that have ARMs, however, I have assigned those deals over to other investors who were interested.
      4. If you are playing the investor role, yes, there is an option period time put in and if you can’t find a buyer in that time, you should opt out.
      5. Put your name on the contract and then following your name put “and/or assigns”. No land trust needed..you are just an intermediary for these.
      6. Title company is not necessary, I typically close all my deals with an attorney.
      7. Yes, many times the buyers are not concerned with the home value because the loan is what is of value to them because they can’t get one. However, I will say that as an agent, you have different laws to abide by. I always inform my buyers of home value, after that, it’s up to them.
      8. It depends on how you structure the deal – are you an investor doing a MAPS deal as an intermediary or are you representing them as a realtor? The answer to that question determines if your broker gets a cut.
      9. If you find properties that have equity and it’s in a good area, then you may want to take it on yourself as a subject to (don’t do a mortgage assignment) and then wrap it to a new buyer. But if it’s not a good investment, then do a mortgage assignment and get an assignment fee.
      10. I always tell the seller I am finding them a new buyer. I don’t want a surprise coming up at closing that screws up the whole deal because I wasn’t up front from the start.
      11. This depends on your role (realtor or investor). As an investor, It’s all about wording. You are essentially “selling” your contract to the buyer so state it just like that. You have a house for these terms and if they want it, this is the fee to buy your contract. Explain all the benefits of the buyer getting this house this way (they are numerous).

      Hope that helps!!

      Dani

  • Question from Tanya:

    Hi Dani:

    I am very interest and somehow familiar with this concept. Although I am kind of overwhelm with the information.

    Where will you recommend fro me to start. Watching the videos, I watch the one you sent with Phil Grovesv or thru your blog?

    I look forward to making this my last stop!

    Thanks Dani.

    Many blessings in all your endeavors.

    Tanya

    • Hi Tanya,

      I actually think that Mortgage assignments are what you need to be focusing on to really hit the ground running in this market. So, if I were you I would check out this blog in it’s entirety because I posted a ton of information to help you learn what the mortgage assignment program is all about.

      Sign up for the confidential report because in that 30 minute video, I go into a ton of stuff that I only teach my students or agents so you’ll get some insider info and tips.

      And if you haven’t been watching the launch videos, then absolutely check those out. Go to http://www.mortgageassignmentprofitsreview.com/go/maps There are currently 2 videos up and they are filled with great information so watch them as soon as you can.

      I will also be doing a webinar next week for everyone as well to announce all the bonuses I will be giving away as part of the Mortgage Assignment Profit System and I’ll be doing a lot of Q&A to answer any questions you all have! As long as you’ve signed up for my free report, you’ll be on that notification list as well.

      I’m excited for you Tanya, you sound like a go-getter and that means you’re going to rock with this program!!

      Dani
      Thanks,
      Dani

  • Fred

    Do both the buyer and seller go to the attorney’s office to sign the closing documents? Is the down payment money/assignment fee put in escrow with the attorney?

    • Hi Fred, how you close the transaction is entirely up to you and whether both parties are there at the same time is also up to you/them. I typically have everyone close together because they all need to meet each other and exchange contact info. Essentially, until the buyer refinances, they are in this deal together and it’s always best if they do a good job communicating. I have done it 3 ways: 1. Close at the home with a notary. I have the attorney on speaker phone as he goes through the closing documents and answers any questions.2. Close at the attorney’s office. 3. Close at a title company with a escrow officer (this was my least favorite because the escrow officer doesn’t always know how to answer questions regarding these transactions, however we are currently looking to train someone so they can close these at title for us).Yes, the down payment/assignment fee is put in escrow with the attorney.

  • Fred

    Would there be three documents to start the escrow process for a mortgage assignment – TAR Contract, Sub-To/MAPS Contract, Assignment Fee Agreement?

    Would the buyer need to purchase a new title insurance policy and hazard insurance policy?

    Thanks for your help!

    • Hi Fred, the entire package of MAPS paperwork covers everything you need (plus the TAR contract). There is an Assignment of Contract form you will fill out with the buyer that will detail the assignment fee plus acknowledgments and disclosures that each party has to sign.Title insurance is up to the buyer. Some want it, some just want a title run. I personally have my attorney hold this discussion with the buyer. For hazard insurance, they can either get a new policy or be added to the current one. It is easier and cheaper to be added to the existing policy. Hope that helps!Dani

      • Fred

        Where can I get the package of MAPS paperwork? I have a “sub-to” form from the Re-Volution class I took last year. Can I use this form for a MAPS deal?

        What is the typical fee an attorney charges for a MAPS deal? If the buyer chooses to get title insurance, wouldn’t this be a double charge – the charge for the attorney and the charge for the title company services? If the buyers know they want title insurance from the beginning, could you just use a title company to do all the work?

        Is it that easy to add someone to a current hazard insurance policy? Doesn’t the insurance company get suspicious when someone is added to the policy? Does the insurance company want to check the credit of the person being added to the policy? Who submits the request to add the buyer to the current policy – the attorney, the title company, the seller, the buyer?… Thanks!

        • The MAPS paperwork is going to come with the MAPS System Phill is now launching. You can use a sub-to form to lock up a contract but I would make sure that you have all the MAPS paperwork by the time you close. You will want to have all the proper disclosures and acknowledgments to not only keep yourself protected but to also make sure your buyers and sellers are fully aware of the transaction and how it works.Our attorney charges us around $2000 to close these deals. We are looking to find and train an escrow officer on how to close these so we can begin closing at a title company when a buyer wants to get title insurance but for now, our attorney closes all of our deals whether there is title insurance or not and there is no double charge. It depends on the insurance company as to how easy or hard it is to add someone to the policy. They don’t usually want to check the credit. The seller will typically make the call or we’ll just fax in the request and sometimes the insurance company won’t do it. If that’s the case, then we have a insurance agent we use that will create a new policy for the buyer.

  • Fred

    Is it common for a buyer to get a home inspection when doing a MAPS deal?

    • I’ve never had a buyer want a home inspection on a MAPS deal. I am a realtor as well as an investor so I ALWAYS recommend the inspection to cover myself, but they still don’t want them. Many times the homes are newer so maybe that sets buyers at ease with regard to home issues. I honestly don’t know why they never choose to have one, but that has been the case in ever deal I’ve done.

      However, I currently am working a deal where the buyer has realtor representation so it looks like this may be the first time I have a buyer do an inspection.

  • Fred

    Thanks Dani… It’s great that you are able to answer a lot of my questions about MAPS deals!

    Going back to Adolfo’s question about doing a MAPS deal as a Realtor(R) or investor, I would like to do the deals as an investor, but I’m also a Texas Realtor(R) salesperson.

    In the TREC sales contract, when acting as an investor, would I leave the broker information page blank since this would be a type of For Sale By Owner transaction? Since, as an investor, I would be contracting to buy the home directly from the seller, so we wouldn’t need broker representation. But, since I’m a licensed member of TREC, I do have the right to use the TREC sales contract.

  • Fred

    When the sales contract is assigned, does the buyer put up an option fee and earnest money deposit like a conventional sale? Or does the buyer deposit the full down payment money in escrow when the contract is assigned and then follow the terms of the original contract?

    Let’s say I get a home under contract with a 90 day option. When the contact is assigned, will the new buyer be under the original 90 day option period?

    • The assignment contract stipulates a non-refundable deposit of some kind at the time the contract is assigned. Typically, there is not an option period because the buyer doesn’t want to do any inspections, however, you could work one in if you wanted to have one. All remaining monies are brought to closing and that is all detailed in the assignment contract as well.

      Technically yes, the buyer is under whatever remaining option period you still have left.

  • Fred

    What if the seller doesn’t have a property survey? Is it required to have a survey in a MAPS deal?

    • No, a survey is not required but I always try to supply the buyer with one if there is one available.

  • Fred

    Does the buyer need to get a new appraisal in a MAPS deal?

    • Not necessary and I’ve never had a buyer want one even though I offered it as an option/idea… btw, our webinar is tomorrow night…you can register on our home page: http://www.mortgageassignmentprofitsreview.com

      • Fred

        Thanks! I’m looking forward to the webinar. Do you know when the MAPS course will be released?

        • To be honest…I don’t know exactly, but hopefully soon which is why I’m holding a webinar tomorrow night. Phill has been working really hard on his videos and this last one is answering a bunch of questions for everyone so they’ve been tirelessly putting that one together!

          See you tomorrow night Fred – thanks for the interaction on the blog – most everyone else emailed or called but I have loved putting the answers here for everyone to benefit from!

  • Fred

    I just thought of one more question… Does the buyer need to have a social security number or ITIN number to complete a MAPS transaction? Basically, can residents from other countries use the MAPS program to buy homes located in the United States?

    • Hey Fred,

      The answer on this one is “technically, no”. They don’t need a social or ITIN number. However, that means the seller needs to be okay with leaving the loan in place for the entire term (whatever is left on their note) because the buyer is not going to be able to refinance the note into their own name. This also may increase the risk of having the note called due.

      • Fred

        Would an attorney or title company reject doing the paperwork on a MAPS deal that has a buyer who doesn’t have a SSN or ITIN? I can see your point, but I think an “immigrant” buyer could eventually obtain at least an ITIN at some point after doing a MAPS deal. If not, couldn’t the immigrant buyer, now the owner and current on payments, do another MAPS deal in the next few years and sell the property to another buyer?

        • Hey Fred, I don’t think an attorney would reject the deal (unsure about a title company).

          However, if the immigrant buyer, now the owner and current on payments wants to do another MAPS deal, they would need to get permission from the seller because they are leaving the sellers underlying lien in place. However, they could sell the home traditionally without needing the sellers permission because that sale would then cash out the seller.

          Hope that makes sense!
          Dani

  • Barry Hart from Cave Creek Az. asks: What is the best way to let the lender know that the borrower is doing a MA -do you do a letter to the lender and if so whenf from a timing standpoint—–will this avoid a due on sale situation–Garr St. Germain etc.

    ANSWER @ 12:26am so forgive my spelling or grammar errors: 🙂

    Hi Barry. If you want to inform the lender about the MA (which I don’t by the way), some investors will write a letter and send it after closing to inform them of the transaction that has taken place. I am not a lawyer and can’t say whether this truly avoids the due on sale clause but many investors think it does.

  • Fefe Williams from houston asks: what system is this you are using for the webinar, interesting.

    ANSWER @ 12:28am so forgive my spelling or grammar errors: 🙂

    Fefe, we used Freebinar but I’d have to say, we may not use them again due to people getting kicked off, and the advertisements screwing up the sound for some people. However, for our first webinar, it wasn’t tooooo bad. 😉

  • Pamela Bergara from Austin asks: Can you do a MAPS with a Reversible Mortgage, heard the subject to is very strict on this.

    ANSWER @ 12:29am so forgive my spelling or grammar errors: 🙂

    Pamela, that’s a great question and I don’t know that I’ve come across any deal that couldn’t be assigned but this is likely a question that should be addressed by the guru himself (Phill!).

  • David Fair from McAllen, Texas asks: How often do you let the seller collect the payments rather than using the loan servicing? Is that a possible higher risk of a problems later?

    ANSWER @ 12:31am so forgive my spelling or grammar errors: 🙂

    Hi David, thanks for joining us! I NEVER let the seller collect payments. I think this is opening a can of worms. This used to be a common scam in the 80’s where sellers would pocket a down payment, collect a mortgage payment that they never remitted to the bank and then the buyer gets foreclosed on.

    I always use either a online system where the buyer pays directly to the bank and the seller can check up on the transaction monthly or a third party servicing company.

  • Jim Benson from Fort Worth, TX asks: have you or any investor you know had a buyer stop making payments? if so, how did it go and what did you do?

    ANSWER @ 12:35am so forgive my spelling or grammar errors: 🙂

    I haven’t but my partner has and the buyer agreed to a deed in lieu and they are in the process of marketing to find another buyer.

    Just be sure to tell your sellers to CALL you if anything goes wrong and then help them do it again if need be or give them the other options I discussed in my webinar.

  • Nancy Aberg from home asks: 1. What happens to the buyer passes away, the heir receives the property per the will, the mortgage is paid off by the sellers life insurance assignment? Who owns the property? 2. What happens to the equity the buyer has put into the home if if they are, for whatever reason, unable to continue making payments after a couple years?

    ANSWER @ 12:37am so forgive my spelling or grammar errors: 🙂

    Hi Nancy…this is a question I would direct to an attorney, but if you want my “late night” opinion…the buyer had the deed and if it transferred to his/her heirs, that is who owns the property (the buyer’s heirs). Who has the loan is less important than who has the deed.

    Additionally, the buyer has a lien with the seller (seller has a deed of trust) so if the life insurance paid off the note, the buyer still owes the seller. In this example, it appears that both people died or am I so tired that I’m getting mixed up?

    2.) if the buyer is unable to make payments after a few years, it works like anything else. The bank (in this case, the seller) forecloses on the buyer and takes the home back. The buyer gets nothing in return. If the buyer truly has equity in the property and foresees an inability to make payments, it might be better for him/her to sell the property as opposed to get foreclosed on.

  • Steve Zarry from Austin TX asks: What is the seller considered to be when a MAPS deal is completed. Would the seller be an additional lean holder?

    ANSWER @ 12:43am so forgive my spelling or grammar errors: 🙂

    Yes Steve, the seller has a deed of trust and is essentially acting as the buyers bank (meanwhile he is still liable for the original loan with his lender).

  • Jim Benson from Fort Worth, TX asks: How many transactions are you experiencing a month? And, average profit per deal?

    ANSWER @ 12:45am so forgive my spelling or grammar errors: 🙂

    Hi Jim, I think we addressed this one on the webinar but on average we do 4 – 6 deals a month, we have slowed down due to all of our business building activities (4 businesses takes a good deal of work we’ve learned!!)

    Also, our agents now do a lot of the marketing and we help them close deals so that has helped us keep up our deals and build the businesses at the same time.

    Average profit depends on how you calculate things. I usually calculate a “net” but if you’re just talking commissions, the least we’ve made on a deal is $4600 and the most is $11,996. If I were to put a average in, it would be $6K – $8K per deal gross.

  • Pamela Bergara from Austin asks: My broker has advised me that our E&O will not cover Owner Financing when property is not owned outright and should our clients want to do so, they have to sign a disclosure and even with this disclosure, should I be sued by any parties I will not be covered.

    ANSWER @ 12:48am so forgive my spelling or grammar errors: 🙂

    Hey Pamela, I am familiar with KW rules…I happen to work for a brokerage who fully supports these transactions and I am sorry you don’t have the same support.

    I will say this too, that some agents actually work these deals in an investor role and disclose that they are also a realtor so that they are not representing either party.

    Does this still leave you open to a lawsuit? Likely…but the MAPS contracts are very thorough and I feel they do a good job of protecting us (Investor or Realtor) (this is simply my opinion and you should probably talk to an attorney about this)

  • Dave asks: Do you recommend an attorney look over paperwork prior to closing. Thanks

    ANSWER @ 12:53am so forgive my spelling or grammar errors: 🙂

    Dave, I don’t know what state you are in, so if you are outside Texas, you may want to defer to Phill, but my instinct is that you should make sure the contract is in line with all of your state laws.

  • Barry Hart from Cave Creek Az. asks: Are there specific parameters regarding loan amount outstanding and current FMV of house beyond which a MA will not work, ie you recommend a short sale etc.?

    ANSWER @ 12:55am so forgive my spelling or grammar errors: 🙂

    Hi Barry – we actually dove into this question at the beginning of the webinar but I feel it’s a case by case scenario. (just listen to the webinar again for a more detailed answer)

  • Stephen L Huelsman from LA asks: how do i get to your blog … address?

    ANSWER @ 12:57am so forgive my spelling or grammar errors: 🙂

    Well Stephen, if you can see this post…you got here! I remember we answered this question on the webinar too….

  • Joseph Likens from Eighty Four, PA asks: do we need to have a R/E license?

    ANSWER @ 12:58am so forgive my spelling or grammar errors: 🙂

    Hi Joseph, No you don’t need a RE license. In fact there are pros and cons to having a license and not having one so I suggest all investors find a realtor partner and all realtors find a investor partner!

  • Jim Benson from Fort Worth, TX asks: I don’t do short sales, How can I do a combo and why would someone do a short sale on one of my MA deals if there is a chance that I could find a buyer before they get the short sale done?

    ANSWER @ 1:04am so forgive my spelling or grammar errors: 🙂

    Hi Jim, if you can do a mortgage assignment – that’s choice #1. If you can’t and the sellers are either too far underwater or too far behind, you might want to find someone to refer those deals too and get a referral fee.

    • Dr. Ken Rich

      This Q&A made me think of an associated question. When is a house too far underwater?

      Is there an essentially narrow price band that deals work within as a % pf FMV?

      • I don’t like to do these deals if a house is more than 10% underwater. I personally think that it should be a short sale once it’s above that point.

  • Steve Zarry from Austin TX asks: How can a Realtor(R) salesperson do a MAPS deal without their broker being involved? Would you disclose that you’re a real estate agent and then do the deal as an investor?

    ANSWER @ 1:11am so forgive my spelling or grammar errors: 🙂

    Hi Steve, you can do the deal as an investor and not have to involve your broker. Also, yes, I would always disclose immediately that you are a realtor and that you are not representing them in this transaction and then proceed doing the deal as an investor.

  • Jim Benson from Fort Worth, TX asks: How do you set up the paperwork so that you have plenty of time to find a buyer – what words do you put in the contract?

    ANSWER @ 1:16am so forgive my spelling or grammar errors: 🙂

    Hi Jim, I always put in a 90 day option period to give me time to find a buyer. (In Texas, we have a section where this gets filled in so we don’t have specific verbiage to write in)

  • Gary Knutson from U.S. asks: wHY DOES PHILL’S POSTCARD CLAIM TO BUY ALL CASH When that is not true in a Mortgage Assignment, so it looks like misrepresentation. WHY THE OFFER TO BUY CASH???

    ANSWER @ 1:19am so forgive my spelling or grammar errors: 🙂

    A cash offer is what will get your phone ringing. I use similar advertising and I do not in any way feel it’s misleading because I always offer up a cash offer in my presentation. I let the seller reach their own conclusions and I present them other offers they may want to choose as a better alternative.

  • Barry Hart from Cave Creek Az. asks: When the contract is signed with the seller/borrower–is the deed put into an escrow or given to an attorney until a buyer is found to get to close

    ANSWER @ 1:21am so forgive my spelling or grammar errors: 🙂

    Hi Barry, I personally do not put the seller contract in escrow (although I should). I hold all the paperwork until I find a buyer, and after I assign the deal, I send everything to our attorney.

  • Mike Montes from SC asks: can you do MA’s virtually? also, you mentioned just being a facilitator and not a principal in these transactions. is that still the case when you are not re licensed?

    ANSWER @ 1:24am so forgive my spelling or grammar errors: 🙂

    Hi Mike. Although I have not done any “virtual” MAs yet, the REI Matcher absolutely makes this possible and Phill could likely dive into this topic further.

    In regard to being the facilitator, this will always be your role, licensed or not, in a MAPS transaction if you are simply matching up the buyer and seller.

  • Jim Benson from Fort Worth, TX asks: Can you recommend a good 3rd party servicing company?

    ANSWER @ 1:28am so forgive my spelling or grammar errors: 🙂

    Hi Jim, I recommend using Robert Young with the Texas Note Co. Here is his #512.464.1214

  • Stephen L Huelsman from LA asks: who does repairs to the house

    ANSWER @ 1:30am so forgive my spelling or grammar errors: 🙂

    Hi Stephen, whomever holds the deed does the repairs. So after the MA is done, the buyer now has the deed so they are responsible for repairs.

  • Barry Hart from Cave Creek Az. asks: If the house is listed and seller/borrower decides to do a MA with you as an investor–how do you deal with the existing listing agent (not related to you in business etc.)

    ANSWER @ 1:32am so forgive my spelling or grammar errors: 🙂

    Hi Barry, you have a couple options….

    1. Tell the seller to fire their realtor
    2. Offer to pay the realtor some kind of split

    I don’t recommend option 2. In my experience, realtors who aren’t open to creative finance transactions just end up screwing up the deal and the homeowner is the one who suffers as a result.

  • Stephen L Huelsman from LA asks: why do you want the seller to come to the table with cash

    ANSWER @ 1:35am so forgive my spelling or grammar errors: 🙂

    Hey Stephen, sometimes the profit margin is small and if there are arrears that need to be caught up, the numbers can get really tight so you want to be able to bring as much money to the table as necessary to make a deal work.

  • tracee richards from hutto asks: what s the rei matcher?

    ANSWER @ 1:38am so forgive my spelling or grammar errors: 🙂

    Dear sweet Tracee – call me tomorrow or watch Phill’s videos!! 😉

  • Mike Montes from SC asks: if I’m RE licensed in a different state; not my home state – do i need to disclose that?

    ANSWER @ 1:44am so forgive my spelling or grammar errors: 🙂

    Hey Mike, I don’t know the answer to this but my assumption is no, you shouldn’t have to disclose your status as a realtor if you are not licensed in the state where you are doing deals.

  • Jim Benson from Fort Worth, TX asks: Do you answer the phone or let it go to voicemail and then return the call.

    ANSWER @ 1:46am so forgive my spelling or grammar errors: 🙂

    Hey Jim, absolutely answer the phone if you can. It is much harder to grab the deal if you have to play phone tag with the sellers. Typically, the person who answers their phone wins the deal! 🙂

  • salvatore Lombardo asks: Hi guys! How do we decide how much the fee should be?

    ANSWER @ 1:49am so forgive my spelling or grammar errors: 🙂

    Hi Salvatore – this depends on the house and situation. I always try to get paid a minimum of $5,000 on each deal so on top of that you would need to calculate in closing costs and a possible buyer agent or other investor.

  • Gary Knutson from U.S. asks: Do you base your MA fee on a percentage of the home value or what?

    ANSWER @ 1:53am so forgive my spelling or grammar errors: 🙂

    Hi Gary, yes, the house value will matter when you are determining your MA fee. For instance, Phill Grove just did a luxury MA and got a pretty nice MA fee….

  • salvatore Lombardo asks: What’s the minimum down payment the end buyer needs to have and when we the investor take our fee to who does the rest of the down payment go to?

    ANSWER @ 1:54am so forgive my spelling or grammar errors: 🙂

    Hi Salvatore, the minimum down payment depends on the deal. If I were the investor, I would take as much of the fee or down payment as was possible and reasonable. If there were anything left beyond closing costs, other agent or investor fees, arrears or other items, you could perhaps give it the seller. (This would be a rare situation in a MA to have enough funds to go around and still have some left for the seller)

  • Sheila McNeill from NYC asks: What is the longest and shortest time it has taken you to close a deal? And what can sellers expect on average the closing time to be.

    ANSWER @ 1:59am so forgive my spelling or grammar errors: 🙂

    Hi Sheila, the shortest time has been 4 days from contract to close. The longest time was – we never closed because we couldn’t get a buyer for the home due to needing a large down payment to cover all the expenses or because the house was too far underwater (or still under construction).

    On average, I tell my sellers I need 60 – 90 days to keep them realistic but we can usually close these in under 30 – 60 days if you rock out your buyer marketing.

  • Jim Benson from Fort Worth, TX asks: When will we be able to order the system through you? How? If we are a Premium Student already do we get a discount?

    ANSWER @ 2:01am so forgive my spelling or grammar errors: 🙂

    Hi Jim, the shopping cart should be open today (Thursday) and you can use the link we send you in our email or on our blog…or if you don’t get those links in time (because we have to wait to get the links ourselves), just order it through Phill.

    Then send us your email receipt to get our bonuses and hopefully qualify for one of the fast action bonuses.

    I have not heard from Phill regarding a discount for previous students so I’m not sure on that one…however, I’ve never ONCE felt I overpaid for anything I bought from Phill so discount or not, I’d jump on it…

  • salvatore Lombardo asks: If the buyer stops making payments shouldn’t the house go to the lender instead of the seller.

    ANSWER @ 2:05am so forgive my spelling or grammar errors: 🙂

    Hi Salvatore, ultimately if the buyer stops paying AND the seller doesn’t pay either, the house goes back to the lender. However, if the buyer stops paying, the seller has the option to step in and foreclose and cover the payments until we get another buyer…and in that case, the house is going back to the seller.

    The natural order is: buyer defaults = house goes to seller. seller defaults = house goes to lender.

  • Dave asks: When will MAPS system be available and what is cost if your already part of Phils training system. Thanks, Dave in Texas

    ANSWER @ 2:08am so forgive my spelling or grammar errors: 🙂

    Hi Dave….the shopping cart should be open today (Thursday) and you can use the link we send you in our email or on our blog…or if you don’t get those links in time (because we have to wait to get the links ourselves), just order it through Phill.

    Then send us your email receipt to get our bonuses and hopefully qualify for one of the fast action bonuses.

    I haven’t been “in the loop” in regard to the price and I also have not heard from Phill regarding a discount for previous students so I’m not sure on that one…however, I’ve never ONCE felt I overpaid for anything I bought from Phill so discount or not, I’d jump on it…

  • Jim Benson from Fort Worth, TX asks: Which do you get a better response from, the MAPS postcard or door hangers? I’ve not had good experience with doorhangers for other investor methods.

    ANSWER @ 2:10am so forgive my spelling or grammar errors: 🙂

    Hey Jim, our doorhangers get a pretty good response (1% for the most part). We also have a letter that is getting a VERY good response too but we don’t mail these, we drop them at the houses.

    We have found that different classes of people respond to different advertising (ie $150K and under houses, $200K – $400K houses, $500K and up houses)

    I always say SPLIT TEST IT!! Find a neighborhood and develop two pieces of marketing and then blanket half of the neighborhood with one piece and the other half with the other. Track it and find your winner! Keep on tweaking your marketing that way and you’ll be rockin’ in no time, no matter who you are targeting.

  • MESSAGE FROM DANI LYNN:

    That does it for our webinar questions. If yours wasn’t posted, it may be because we answered something similar to your question below.

    Also, we sent the webinar slides AND recording to everyone who registered for the webinar. Email me if you did not get it!

    That’s it for now….I’m hittin’ the sack! Night…

  • Steve Zarry: Do you have any information about using an attorney or title company when doing a MAPS deal?

    Sorry guys – I forgot about the survey questions – thank you for all that great feedback!

    Hey Steve, I always close with our attorney here in Texas. I recommend building your power team in your city (attorney, insurance, agent or investor..whatever you’re not, third party servicing company, title company, lender, credit repair company) Meet with them about these contracts and deals and get your systems in place!! Then go CRUSH IT! 🙂

  • Seth Seastrunk: what are the irs implications for each party? who benefits from the tax writeoffs?

    Hey Seth, the seller doesn’t likely have any irs implications because of the capital gains exemption and I don’t know how to answer that question for the buyer other than this like any typical home purchase where the buyer gets to deduct their interest and property taxes.

    Which answers question 2…the “deed holder” gets the tax write off’s, so in this case, the buyer who bought the home using a MA, gets the tax deduction.

    (BTW – 2:35am…so forgive me for just about everything at this point…)

  • John

    Hey Dani, Is the entire MAPS Program sent / delivered through email or is any of it sent by postal mail? Is there an option to get the non-videos by postal mail or on dvd/cd? Thanks! John D.

    • Hey John, I tried replying to your email earlier and it keeps bouncing back to me so I’m glad you wrote a question here! :-)The MAPS program is delivered both physically AND electronically. As soon as you order you can jump right into the back office and start accessing all of Phill’s videos, contracts, tools, etc. That’s a good question about the videos and if you’re able to get them sent on dvd/cd. I think Phill addresses that in his last video – they can be downloaded on different devices I believe so you have access to them tons of ways. Go to video 5 by clicking the order button on my blog and you can see how it all gets delivered. I’ll have to watch it again too so I can answer this question better this time. I got my stuff all old school 16 months ago or so, so what you get now is completely different and certainly much cooler! 😉

      • John D.

        Hey Dani, Thanks for your fast reply. I have not seen video 5 yet, as I am in the new 1-2-3-4 sequence. My email shouldnt be a problem: jjhmdunn@msn.com. When will you have your new link to order through you for the early-bird list notification. -John

        • Hey John, I am not a part of the current launch so I won’t have a new link for it. I only have the old link which will probably get shut down when I get up to 25 more people signed up.

          I’ll send another test email to you – I don’t know why it keeps bouncing back! 🙁

  • John

    Dani, Unanswered previous question: Did I hear you say in your video, that we can NOT discuss the MAPS Program with a homeseller if they are presently listed with a Realtor? I am an investor / FSBO marketer , no RE License. Thanks again, John

    • Hi John,

      The link on my webpage actually still works, but here it is, you should be able to use it now: https://loveamerican.infusionsoft.com/go/maps24/listingrx1/

      In regards to a homeowner being listed, since you are not licensed – go for it and if it were me (as sad as this sounds), I’d try to get the realtor out of the equation. The reason for that is because most of the time, if they don’t understand how these transactions work, they will just screw up the deal. Does that help answer your question?

      Also, here is my personal office line which most of the time is forwarded straight to my cell: 512-468-5475

      Thanks!!

      Dani

  • Teddy

    Hello when doing a mortgage assignment are these wrap mortgages where the seller creates financing for the remainder of the original term, or are you looking for people that are to get their own financing after a year or two……

    • Hi Teddy, you can structure these deals however you choose. A true mortgage assignment is assigning the current mortgage exactly as it is (exact payment and exact years left on loan) so it’s a great deal for the buyer, especially since the effective interest rate is lower the more years the loan has been paid down.

      However, you can wrap the loan for a full 30 years if you want, you can also create positive or negative cash flow within the monthly payment. There are tons of things you can do but I would also agree that we would like to see the buyers get refinanced if they can within 3 – 5 years, the sooner the better. The due on sale clause is still a risk and I think it’s in the best interest of all parties that we try to get the loan refinanced as soon as they can (or be ready to refinance or sell if they note gets called 10 years down the road in the case of a buyer who needed full term financing).

      Hope that helps!

      Dani

  • Chris

    Does the person assigning the mortgage receive the downpayment/assignment fee directly from the buyer before they receive the assigned contracts or is it paid out by the title company after closing?

    • Dani Lynn Robison

      It’s paid by the title company or attorney at or after closing.

    • Hey Chris, the down payment/assignment fee is paid by the title company or attorney at or after closing.

  • Forhealthreasons

    What I am missing is the actual closing process. One the deal is assigned how is the closing process arranged and do you attend the closing. Thanks. Floyd

    • Dani Lynn Robison

      Hi Floyd,

      Once the deal is assigned, I send all the paperwork to my attorney who prepares closing docs and we set a date to close. I have always attended the closings because I want the buyers/sellers to meet and exchange contact info and I want to be there to address any last minute questions. Ultimately it’s up to you whether you want to attend the closing.

      Hope that helps!

      Happy Holidays,
      Dani

    • Hi Floyd, I think I answered this question in an email to you but let me go ahead and answer it here too.

      The closing process is arranged by calling the attorney and getting him/her all the paperwork to start preparing closing docs and then either they or their escrow officer can help you set a closing date.

      Regarding attending the closing, I always do. I want to make sure the buyer and seller have a good experience and we review important aspects of the transaction, especially the importance of communication. (Plus, this is where I get my check!) 🙂

  • Tract

    Hi Dani,

    We own a home in North Scottsdale AZ. We are current on payments, but the house we bought at $700+ is now worth 100-150K less. We also bought the home using a commercial loan. We would love to find a buyer but do not want to do a short sale. We don’t NEED to sell it, so we are not desparate sellers. We would like to find someone to take over payments so would could make a move to another state. Will this mortgage assignment work under these circumstances? Anyway you could put us in your system and find a match would be great. Feel free to contact me tcoats88@gmail

    • Hi Tracy! I’m from Phoenix – love it there! I’d be happy to put your home in our system. I’ll send you an email to get details.

      Dani

  • Tracy

    Regarding my last post…that is, we bought at $700K, not $700. That would have been a great deal!:-)

  • Scouring Lastly, we have scouring. Scouring refers to the process of having
    machine made folds into your printed material. For example, greeting cards and
    pocket folders usually have built in folds so that people know the area where
    to fold them. The same can be applied to your door hangers. If you have an
    extended door hanger with extra messages and folds, you can have your door
    hanger “scoured” so that the folds are always there. This is perfect
    if your door hanger design has several folds like a brochure.

  • BigNick

    I have a question what does a title company need in order to close an AMPS deal, I am running into title companies that say they are not getting the approvals from above on this is there a trick to getting a title company to say yes to doing AMPS or MAPS deals. Anybody in the Phoenix area?

  • Dwyatt1978

    Hello Dani,

    My partner and I are very interested in purchasing the AMPS program but we have one very key question.  Who can close the AMPS deals?  I spoke with Torok Law and was told that all AMPS deals must go through them.  I want to know if we can close AMPS deals with local our attorney and/or title agent.

    • Any attorney who knows how to close subject to deals or wrap around deals can close these deals. If you use Mark’s contracts, then yes, you must use him and to be honest, he’s fantastic and I use him myself, however, it’s not required you close through him.

      You absolutely can close with your local attorney and/or title agent but I would first ensure they know what they are doing. Proper disclosures and up to date legal docs are required to protect all parties in these transactions which is why I like closing with an attorney where this is their specialty, not just something they “‘also can do on the side”. Hope that makes sense and helps you!!

      I look forward to welcoming you to the team!

      Dani

      • Dwyatt1978

        Thanks for your reply.  I am in the process of doing a deal with another investor who has the AMPS program in order to get the money to purchase the system myself.  I want to close with a local attorney because he is already a part of my team and I want to continue to nuture this relationship.  I am in Florida so it makes since for us to have control over our deals.  I am not in favor of constantly sending all  money and paperwork to Torok Law in Texas to do all my deals.  I also want my buyers to feel comfortable as well.

  • Larry McIntosh

    Can ou explain in a little more detail how the REI Matchmaker works?

  • Scottie Thompson

    Hi Dani…

    What forms/contract(s) do you use when signing up a Seller for an MA deal?

    Thanks
    Scottie A.N.T Real Estate & Acqusitions

    • HI Scottie, I use Toroklaw.com (their SMA contract).

      Hope that helps!
      Dani

  • Scottie Thompson

    Hi Dani…

    What fees/costs to ask for from your Buyer? Does the Down payment go toward the loan balance or to the investor? Is the down payment and Assignment fee different?

    Thanks
    Scottie (california)

    • Hi Scottie,
      1) I ask the buyer to pay for everything via the down payment (that includes any arrears, my fee, closing costs, etc).
      2) The down payment goes to whatever you allocated it for (see answer #1)
      3) The down payment and assignment fee are 2 different ways to say the same thing.

      I hope that helps!
      Dani

      • Scottie Thompson

        Hey Dani..I hope your well! Where do you obtain the MAPS contract for sellers?

  • GW

    Its pleasing to meet such a bunch of energetic people,
    Havent met you all YET but I will.  By the way who makes your door hangers
    and whats the cost ?
    GW

    • We get our doorhangers at doorhangers.com – all their pricing is on their website!

      I hope that helps!

  • Scottie Thompson

    Hi Dani..Question..How does the selller foreclose on the property if they don’t hold the deed to the property anymore? Wouldn’t the lender began forelosure proceedings since they hold the loan? How would the owner get the deed/property back?

    Scottie

    • Hi Scottie, The seller will receive a deed of trust to secure assumption that gives them the power to foreclose in case of default. Hope that helps, Dani

  • Scottie Thompson

    Hey Dani…Where can we obtain the MAPS contract from? Scottie

    • All the contracts should be in the REI Matcher platform I believe.

  • Yourhomewesell

    Hello Dani. Is it possible to do any of these deals without purchasing the program? I know it will have tons of information. However some of us can’t afford the program right now. Hopefully when I get my first deal ill purchase it and get the additional resources it provides. I live in jarrell tx so I’m not too far from you. If I find a deal, can you coach me through it and we can split the profits so that I can get a hands on the program and so that I can be able to do it on my own. I’ll like to join your team but my finances are very strapped at the moment. I hat making excuses but the reality is there.
    Do you have any alternatives by which I can do it? Where can I get all the contracts, attorneys and tittle company in the area that can facilitate this strategy.

    Thanks

    Duane