How Do You Do A Subject To?
Can anyone give me a step by step on a Subject To. I have the jist but need some more exact steps! I'm a perfectionist and I never feel like I have everything in order! This is what I have so far:
1) Find a good deal on a house.
2) Talk to seller about it?
3) Do a contract for a subject to.
4) Seller signs over the deed to me.
5) I give the seller U-Haul money.
6) I can do an owner financing with a buyer.
7) Buyer gives me a down payment.
8) We do up a contract.
9) I can raise the interest rate.
10) I can increase the value of the house.
11) Do I need to stipulate about when the buyer needs to refinance or just what?
12) The buyer then refinances or sells later and I get more profit!
Could someone please answer some of these questions and fill in the blanks for me? Thank you very much!
Tom Stewart
Never mind John Locke is helping me thanks anyways!
John Locke is awesome. He recorded on cassette for my older car and cassette player, the contents of his CD which came with his course.
Extra effort much appreciated. Now I rehearse it all again and again while delivering pizza and finding good deals.
Another source of deal-making, and John Locke remains the man.
Show up only in the nicer car, though!
Alan
Alan,
Make that an Extra Large, sausage, mushroom and extra thick crust about 7 PM please.
John $Cash$ Locke
PS: I'm am covering your marketing strategy in an article I am working on, way to go.
_________________
"If people like you they'll listen to you, but if they trust you they'll do business with you."[ Edited by JohnLocke on Date 04/17/2004 ]
After you get the house Sub2 What do you think of the idea of just raising the interest rate and offering the house at Zero Down Payment?
I wouldn't suggest it. You want as high a down payment as you can possibly get. For one thing, it'll cover whatever money you gave to the seller in the first place.
Also, if the buyer has put nothing into it...they have nothing to lose, while you have everything to lose. BAD IDEA.
Quote:
On 2004-04-19 16:52, heyshid wrote:
After you get the house Sub2 What do you think of the idea of just raising the interest rate and offering the house at Zero Down Payment?
heyshid,
snek11 is absolutely correct with this. I'd just like to ad that advertising "Owner Financing" is generally enough to get people calling. You don't have to give them the house to get someone in it as well. They realize that they won't be getting the absolute best market rates when they buy this way. That's why owner financing is attractive to them. Other than that. Verify employment, make sure that they aren't habitually being evicted for non-payment of rents, and that they are not on the FBI's most wanted list. What is the next thing that qualifies them for your house? You guessed it, "How much money can you put down?" and "How soon do you want to move in?"
As far as qualifying the candidates, a friend of me told me he does something else which made sense to me. He's not doing owner finance deals, just straight leases, but the same idea applies... he wants people who will pay every month.
Anyway, he has them show him proof of current car insurance. He claims that it's one of the best indicators of stability he's found... not that current insurance makes them a great risk, but none makes them a terrible risk.