Help Please...First Potential Subject2 Deal
Hi, I have a potential subject2 deal, but I'm having problems understanding what forms I need to do the deal. I've ordered the course by Randy and Charlie France, however, their forms tend to eal more with buying subject2 and then lease optioning the property...I'm looking to purchase the property subject2 and then do any reapairs it may need and then sell it. If there is someone who is familiar with this type of deal who is willing to help me through this I would greatly appreciate it...I'm from NJ so if you're from NJ I guess that would be even better...thanks in advance Bob
MrLandlord0422@aol.com">MrLandlord0422@aol.com
MrLandlord0422,
Glad to meet you.
Do you feel comfortable with the forms you have for buying the property, if so then are you wanting to sell the property under Land Contract (or other State Specific device) or sell conventionally?
If you give me a heads up on this question, then I would be able to better guide you on what to do.
Welcome on board this board, some super people here at TCI to help you, so keep posting.
John $Cash$ Locke
Glad to meet youas well. I'm not completely comfotable with the forms I have. I plan on buying the property using a Land Trust and then listing it with a realtor to sell. From what I understand the person I sell to would not have a problem with any seasoning issues since the lendor would most likely assume that the property never changed ownership and that the seller was just advised to put it ito a trust even though a deed was just recently recorded...thanks for responding to my post so quickly...Bob
MrLandlord0422@aol.com[ Edited by MrLandlord0422 on Date 04/10/2003 ]
Bob,
Do not assume the lender will not know whether it was sold, in a Subject To deal you get the Deed which is a transfer of ownership. The Trust is only for anonymity purposes.
Since you are not planning on holding the property I would take a different approach. I would have the sellers sign an Offer and Acceptance Agreement with Bob's Company and/or assigns.
I would have the Deed made out the same way. Instead of recording the Deed record a Memorandum Of (State Specific Deed) this will cloud the title, so your seller would not be able to sell the property without clearing up the Memorandum.
When you find your seller assign the Deed to them at closing. This will also release the Memorandum and in effect no transfer took effect regarding the seasoning issue. You will still need to run this by a Title Company or Attorney in your area which ever is appropriate.
John $Cash$ Locke
Thanks again John for your quick response....here's a little i know about the deal...maybe it will steer me in a better direction..I was given a lead by a birddogger at the garden state real estate investors association meeting i attended just before so I haven't seen the property as of yet...what i do know which sounds good to me so far is that the owner and her husband bought the property at a tax sale years ago...they refinnanced and the husband died...the property is worth about $100,000...$60,000 is owed on the property and she is behind on her payments about 6 months (payments are roughly $600/month)...any advice would be appreciated...thanks again Bob
MrLandlord0422@aol.com
I'm thinking just use hard money or a private investor for this deal?