Sub To Contract Question ???
Hi,
I'm very interested in the Sub to and have been looking to create a contract. I've looked on this site at their real estate forms and the form that is linked to the Sub to ... I either just don't understand it or its just the wrong one.... I dunno. Can anyone lead me to the right contract?
My other question is, my understanding to doing a Sub to is because the seller is behind on payments, so should I still be concerned with Title Evidence and Defects, a Lien Affidavit, Termites, Roof, Environmental Conditions ...etc. and assume the seller will be able to pay these expenses at closing like it states in contracts that I have found?
Thanks for you help
Nikki
I cannot answer all your questions, but, at least with info you can get from John Locke, the idea is to get a property before the seller gets behind on payments. He also advises that the investor pays all closing costs.
You may want to check into his course, he's a huge help in this business, and will introduce you to a whole team of people doing subto's.
His manual also includes all the contracts you need.
Thanks for the info
Nikki
LEASE OPTION[ Edited by scarywoody on Date 08/13/2004 ]
why cant you just sell on a 2 year contract for deed and ask for 10% down non refundable and then add an extra 17% onto the price assuming that the inflation rate is going to be 7-8 % per year and also make the payments 100 more per month, and pocket and extra $2400.00. so now we are talking a total profit of 10% down =8000.00+17%for inflation=approx 14000.00+2400.00 from left over rent= a total of $24000.00. now you turned a prop. with no equity into a profit of $24000.00 over the course of 2 years.. good luck, Ryan[ Edited by I_Need_Help on Date 08/02/2004 ]
Rambler is right on. Nice post
> why cant you just sell on a 2 year contract for deed and ask for 10% down non refundable and then add an extra 17% onto the price assuming that the inflation rate is going to be 7-8 % per year and also make the payments 100 more per month, and pocket and extra $2400.00. so now we are talking a total profit of 10% down =8000.00+17%for inflation=approx 14000.00+2400.00 from left over rent= a total of $24000.00. now you turned a prop. with no equity into a profit of $24000.00 over the course of 2 years.. good luck, Ryan>>>>
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This skirts that old prohibition, "You can't sell what you don't own."
You're entering a contract to deliver a deed in 2 years. You might not be able to deliver on that promise.
Now, I suppose your seller transferred a warranty deed into trust for you with your sub 2 deal. So, even if you can legally "sell" that interest in a contract for deed, isn't your buyer really only buying a short-lived instrument? Suppose you're not able to live up to your sub2 deal and your deed vanishes. What will your buyer do with you and your contract?
you would you his 10,000 down payment for his closing cost. (how ever much that may be)
Quote:
On 2004-08-05 00:33, BarnBuilder wrote:
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This skirts that old prohibition, "You can't sell what you don't own."
BarnBuilder,
Being the SubTo forum, aren't we assuming we got the deed when we bought it?
[addsig]