Ep. 74 Subject-To Investing with Jeff Coffman of Sub2Empire.com

In this episode REALTORS® Adam Kruse, Shannon St. Pierre, and Connor Klenke talk to Jeff Coffman of https://sub2empire.com/ about Subject-To investing, which is a method of purchasing properties while leaving the seller's loan in place. Find out how Subject-To investing helps to avoid paying closing costs twice. Email questions to [email protected] Adam Kruse - https://hermannlondon.com/realtor/adam-kruse/ Shannon St. Pierre - https://hermannlondon.com/realtor/shannon-st-pierre/ Connor Klenke - https://hermannlondon.com/realtor/j-connor-klenke/ Jeff Coffman - https://sub2empire.com/ Address - 7350 Manchester Rd, St. Louis, MO 63143 Phone Number - 314-802-0797 Search For Homes on http://www.wizah.com/ Theme Song by Trastornobeats Produced by Joey Vosevich 2:40 Jeff was previously on episode 62 of the podcast talking about being the victim of serial squatters. Jeff gives an update on the situation 7:55 What if Jeff had squatters now during COVID while evictions are not allowed? 9:10 What is Subject-To investing? Is Subject-To investing a scam? 10:30 Is Subject-To investing the same as assuming a loan? 12:18 What is Jeff’s preferred method of Subject-To investing? 13:55 Taking the property in a trust vs. llc 15:30 It is recommended to get an attorney involved 16:00 What is the benefit of putting the property into a trust? Will the bank call the note due? 17:00 The number one way of avoiding the due on sale clause is simply to make payments 18:00 What kind of time frames does Jeff put into his agreements when it comes to when the seller leaves and the exit strategy? 19:00 There is currently a shortage of lumber and the cost has doubled 22:00 What are the risks to the seller? Do tax liens and utility liens stay with the house? 23:00 Personal judgments will not usually follow the house 23:30 Does the original home owner make money off of this deal? 24:20 Subject to investing is a way to avoid short sales and avoid damaging the seller’s credit 26:10 What are the ideal numbers to do a Subject-To deal? Jeff likes to stay in the 90% loan to value range 28:00 Jeff will make a deal with negative equity if the home will cashflow as a long term rental of at least $300 a month 29:10 What is the great retail divide? 31:00 Are there any loans Jeff stays away from? Jeff advises staying away from reverse mortgages because there are frequent occupancy checks. 32:00 Jeff is currently working on a 2 family property with a tenant in the lower unit. What are the details of the subject to deal on the property? 45:50 How does Jeff handle rehabs? How does Jeff structure his LLC deals? 49:00 Is there a title company Jeff prefers for his Subject-To deals? 50:30 What does Jeff’s team look like? 51:20 What is the benefit of Jeff’s wife getting her agent’s license? 53:20 How does homeowner’s insurance work when doing Subject-To deals? 58:00 What is the benefit of doing Subject-To vs an “as-is”? 1:00:30 It is good for agents to know this is an available option. 1:01:00  Join the Subject-To Real Estate Investing Mastery Facebook Group