Sub-To Purchase Contracts
Good Day All!
I have a question regarding the purchase contract used in Sub To deals.
A standard contract states you are paying the seller $X for his property, and closing on a specific date.
What type of contract do you use for Sub To deals? If I'm not paying the seller, money, just taking over payments, then the contractual arrangement is entirely different than any regular contract. Also, I know I need to get a release of info. at time of signing the contract, and I will need a quit claim at closing... what else do you folks use when doing this every day?
Thanks in advance for your feedback. These forums are remarkable.
John Locke has a great system that he sells. In that, he has purchase agreements and all the other stuff you would need to complete your deal. Being that subject to is creative, the cookie-cutter contracts usually do not work.
Thanks!
. Now the funds aren't available until a deal is done. Sub To seems to be the way to get in at the lowest $ outlay.
I'm sure that John Locke's course is just what I need. Unfortunately, I did not know about it when I spent my money elsewhere (someone else's "boot camp"
Specifically, what is in the Sub To contract that makes it different from the standard contracts?
Thanks.
P.S. - I have a contract from the course I went to, but the contract is rather generic, and though it may work for most purchases, I believe the Sub To agreement needs to be very specific.
I am guessing you have the same question that I do that I have never had answered definitively.
I'm guessing you want to know what to write in as the purchase price!
I'm in the process doing my first sub2 (although I have been investing for almost two years) but my attorney advised me to use the UHAUL money as the purchase price. He drew up an addendum that basically states that I agree to take the property sub2 the following mortgages with the following balance and following payment. It also gives me a right to get out of the contract if the numbers are wrong once I verify them.
John Locke's program is helpful wasn't at all what I was hoping for. The only course I have purchased which really explained the mechanics of putting a deal together was the Carelon Sheets program. A lot of people on here don't like it but it is the only course I have purchased to date that explains the mechanics of completing a deal. I don't care about what to say to the sellers and how to market to them. That is important but frankly I ALSO want to know the mechanics.
I hope I answered your question, but if I didn't, please be more specific and PM me and invite me back to reply.
THANKS and GOOD LUCK
You can find Sub2 agreements all over the internet, but if you can't find one, let me know and I will get you one.
Hello!
Here's another twist for ya.
I did a "cookie-cutter" contract, stating that I'd pay the seller x on or before a given date. The seller then gave me the Warranty Deed (I had already done the title work).
Thanks,
OTW :-D
The contract I have states that the purchase price is the amount of the
loan(s). "$87,400 Purchaser is buying "Subject To" Seller's existing loan at ABC bank in the amount of $87,400."
Then in the fee simple title issues of the contract, the buyer recognizes the mortgage as an existing lien, that the deed is not free and clear of all encumbrances.