Quick Claim?
Hello!
I'm new to all of this. I have a property valued at about $180K and the owner wants to sell it to me for $125K. It's a two story 'double" in an historic area and I think it would be great rental property. How can I make this happen with limited funds and not so great credit? Thanks in advance for any comments/suggestions.
wtprater
wtprater,
You can make it happen. Get in touch with a mortgage broker who can help you find financing. You shouldn't have a problem since it has so much equity in it. You should find an "investor-friendly" mortgage broker to help you with this, you can find one at your local REI club by clicking on the "Groups" tab at the top of the page. Some clubs have a website with members that are mortgage brokers.
If you cannot get qualified for a loan, then take the property "subject-to" the exisiting mortgage. You have the person deed you the property and you take over their mortgage payments. But, be aware that you can activate the DOS (Due On Sale) clause, in which the loan will need to be paid off in full in a short period of time. There are ways of avoiding the DOS clause and you should search through the forums for suggestions. Or pick up John $Cash$ Locke's Subject To Training Manual for $150 (the price to have a real estate attorney draft up a contract for you). You also get personal support from $Cash$ himself via 24/7 e-mail and his cell phone number. So if you need help with the deal, then he can help you. It's the best bang for the buck when it comes to REI material. Good luck.
Tanya[ Edited by tanya1215 on Date 07/08/2003 ]
Don't accept a quit claim deed until your title insurer verifies that you can still get title insurance with a quit claim deed.