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This is a real estate investor based in Austin Texas who is a “transaction engineer.” He employs 12 strategies to buy and sell properties. Just came up with something called “mortgage assignment”. In a nutshell brokering deals between sellers who have little or no equity and buyers who can’t get regular financing.
You do a subject to with the seller and assign the contract (mortgage) to the unloanable buyer. You then get an assignment fee paid by the buyer which is considered a down payment Anybody hear of him? Also what do you think of mortgage assignment?
I’ve never heard of the guy.
I would not NOT do this technique. You’re setting yourself up for a big time lawsuit.
Not just a lawsuit – but a class action lawsuit involving hundreds of sellers and buyers once the attorney general gets wind of this.Jack Miller’s techniques have been tried and tested for more than 45 years. I can’t imagine why you’d look any further for reliable and SAFE real estate techniques and strategies.
I did check him out on google and I know that I would NOT want to be associated with him in any way whatsoever.
It’s people like this that give real estate investors a BAD NAME and cause all the ANTI-investor laws to be passed.
Yes, I’m saying it is a VERY VERY bad idea to assign a subject to deal to someone else.
The seller negotiated with YOU and they are trusting YOU to make the payments on time. They don’t know or trust someone else you might assign the contract to.
If you assign a subject to contract you are putting both the seller and the buyer at HUGE risks.
A seller is a civilian – they don’t have a clue what to do if a buyer does not pay. They don’t know how to protect them selves.
A buyer is a civilian – they don’t know how to protect themselves or what to do if they get a foreclosures notices if they make payment to the seller but the seller pockets the money.
You need to stay in the middle of the deal to protect all parties and make sure the payments get paid. If there’s a problem, you need to act quickly to resolve ir so neither the seller or the buyer suffers a loss.
Sure, you can disclose to all parties what’s going on and get away with assigning the contract. It can be done. But if there’s a problem with payments not getting paid by either party YOU will be the one they come after for putting the deal together. If an attorney gets involved, you could be facing deceptive trade charges. If they discover that you’ve done a lot of these, they will track down all sellers and buyers and you could be facing a class action lawsuit + deceptive trade.
It’s not worth the risk to you, the seller or the buyer.
It’s just a matter of time before this Phil guys gets caught up in a big legal battle. When it hits the fan you can be sure that laws will be passed in Texas and other places where he has students to FORBID SUBJECT TO DEALS.
It will be the big bad investors who are all to blame… thanks to Phil Grove and his really bad strategies.
Phil is teaching people how to do risky deals that can get a lot of people in big legal trouble.
It’s so easy to make a lot of money the RIGHT WAY, I don’t understand why anyone would step over the line and risk it all.
Jackie
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Posted By JackieLange on 29 Oct 2010 07:56 PM
I did check him out on google and I know that I would NOT want to be associated with him in any way whatsoever.It’s people like this that give real estate investors a BAD NAME and cause all the ANTI-investor laws to be passed.
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Jackie,
Are you saying that if you buy a property subject to the existing mortgage, you should not assign your position to anyone else? What should you do, either rent the house or sell it on a wrap and stay on title until it is paid off?
Thanks,
Gary
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