A RE License And Sub-to's

Comments(5)

• 
  JohnLocke20th October, 2003

  BethE,
  
  Glad to meet you.
  
  First there is nothing illegal about doing Subject To deals.
  
  There seems to be two camps about Subject To investing those that do and those that don't. Those that do enjoy the creative investing methods and $ that Subject To investing offers. Those that don't like to bug me.
  
  I have several students who are real estate agents and they do very well. They disclose they are agents and go on to explain how they can help. So to answer your question yes you can do both. However pick a Broker who has no problem with you being creative here again there are those that do and those that don't.
  
  John $Cash$ Locke.

• 
  BethE20th October, 2003

  Thanks John,
  I appreciate you pros answering these questions night after night. I can't wait to read your book!
  The RE agent teaching the course is very closed minded...I think this website is GREAT!

• 
  JohnMerchant21st October, 2003

  "The RE agent teaching the course is very closed minded"
  
  In the world of business, there are usually people on several sides of any & all issues & fields, and their attitudes quite often stem from who they work for, and how they make their livings.
  
  e.g. in college I took an insurance course, in P & C (property and casualty insurance) from a lawyer who did some defense work for a couple of insurance companies....and man, was he ever prejudiced about Plaintiff's lawyers and lawsuits by "all those scheming thieves" against those terrific and hard working insurance companies!
  
  But later, when I was working for a Plaintiff's firm I quickly learned that all the thieves weren't on our side, and that the Defense side had its share of crooks and cons, and tales of the slick insurance adjuster slicking some widow out of a release for a few pennies, when she likely had a BIG suit against somebody, maybe for the tortious death of her husband, were depressingly common.
  
  As John Locke accurately tells you, there are those who do Sub-To's and those who don't and can't believe anybody honest would do such a thing.
  
  Most RE Brokers and Agents make their livings selling other peoples' RE, for cash commissions, and SubTo's are NOT to their advantage and aren't the system that support them...so of course they don't like the whole idea of Sub To...if they even understand it!
  
  As a lawyer and RE Broker, I know that this attitude is NOT universal, and is frequently the result of ignorance,
  
  Key to safely doing S.T.'s is total and full disclosure about what you're agreeing to do & not do, maybe even more than the law requires, so if anybody ever does harrass you you have lots of proof that you've disclosed everything, and concealed nothing.
  
  One of the things I believe in strongly, is having everything signed by the seller witnessed & notarized, so I have some built in witnesses about the whole deal, what was said & promised, and what happened.
  
  This sure does restrain the remorseful seller from suddenly recalling how he was skinned and cheated by all those lies, etc...and I have my witnesses and notary maybe ask a question or two and listen hard to what's said...and take a few notes on the meeting so they can later testify for me, if needed.

• 
  louisgeorges22nd October, 2003

  I have a realtor that doesn’t mind at all creative financing (lucky me!). How would I write it on the contract to make an offer to the seller that I want to take over is loan and make is payments to the bank?
  
  Thanks,
  Louis

• 
  BAMZ22nd October, 2003

  Hi Louis,
  
  I would write at the bottom of the front page "See Attached Amendment"! I would write up the contengency on a seperate document.
  
  If your realtor is familiar with creative financing, they will be able to assist you with the verbage. Just in general, you simply write that this contract is Subject To taking over the existing financing, or debt.
  
  Best of Success,
  
  BAMZ