Hey! It’s Armando Montelongo and I’m going to teach you something I call Ownership Takeover.
Now, there’s some other various names for it, like subject-tos, but I call it Ownership Takeover because I definitely made some tweaks to this that is very, very powerful. It’s an extremely advanced real estate strategy and I’m going to show you how you can make a lot of money actually buying these houses where you can flip it or you can actually just hold onto it and really build a 5-10 unit portfolio–5-10 unit rental house portfolio–literally putting no cash out of your pocket.
Now, let me qualify this because legally, I have to say you could put cash out of your pocket, it might cost you something, but let me teach you what really happens here. Ownership Takeover really consists of finding somebody who is in trouble, so, an NOD, a pre-foreclosure, or pre-pre-foreclosure (and that’s a different subject matter, definitely a different blog post for another day, but…). What you do is, they’re in default of their mortgage (or close to default on their mortgage) and you take over the ownership by literally getting the deed to their property with their permission; they sign the deed over to the property.
Here’s one thing most people don’t know is that the bank doesn’t own your house. A lot of people say, “oh, the bank owns your house,” and it’s like a big joke, but the bank doesn’t own your house. They simply write the mortgage or make the loan on your house. You actually own the property which means you have the legal right to reassign or to sign that property over to a new owner. Now, there’s a catch with that–
Oh, by the way, the person who goes in there right now and puts in the best comment, the best comment for the next 24-hour time period from when I put up this post, I am going to go an teach you, coach you, and mentor you for 15 minutes absolutely free on a subject-to or an Ownership Takeover deal the “AM System” way. So leave a comment below to be able to win that 15-minute free coaching session where I’ll walk you through it, personally mentor you on Facetime.
So, they have the right to go and take this property and assign the ownership to you. Now, there’s a hiccup there–there’s something called a Due On Sale clause which prevents you from reassigning the ownership of the actual property. However, the Due On Sale clause is a state regulation that’s written based upon State rules. There is some Federal regulation that allows you to get around it. So, the person who leaves the best comment I’ll actually teach you that on our one-on-one mentoring session. And for those of you who are part of my Wolf Pack I’ll be talking about that in detail on an actual webinar.
But you can actually own the property without qualifying for the mortgage, without having to go over there and refinance the mortgage, or bring cash or a hard-money loan and actually own their property on this Ownership Takeover deal. I’ve actually bought these properties and had the owner give me $4,000 up front for taking over their mortgage and getting them out of foreclosure. So, it’s a tremendous way to make great money on a deal. It’s a tremendous way to actually buy a property, even if it doesn’t have a lot of equity, hold on to the property long-term, and then let the equity build by renting this property out to somebody else and really creating long-term residual wealth. And you might think, “hey, you know, Armando, I’m not going to be making a lot of money on this property for 5 years from now. But then, one day you are going to be 5 years older and you’re going to wish that you had done it.
Also, like I said, people will pay you sometimes to takeover these properties because they know that if they go to sheriff sale, if they get foreclosed upon, then–guess what?–they don’t get a dime from these properties whatsoever. So, they would rather you take over the property, take over the payments, save their credit so that they can have the hope of buying another home in 2 years. And–guess what?–they can be on your buyers list and you can sell them one of your other houses in the next year or two and make money from one of those properties as well. You can help people and make a tremendous amount of money of doing this.
So, love it! Thank you guys for joining us on this quick blog post. Leave a comment below to win a 15-minute free coaching session from me. Best comment, coolest comment wins. See you later.