Subject To In New Subdivisions
There is a course that talks about buying properties sub2 in new subdivisions as young as 2 years old. Have you all found this to be profitable? One month vacancy and you have a high monthly payment to have to carry.
I target areas that are 2-5 years old. but in my area I set a cap of homes that are $70,000 to $170,000.
As for the payment, thats why I get "up to three months of payments" from the seller before I do the deal. In newer homes most the time they can swing that.
Newer homes are a whole lot easier to fill and bring bigger down payment and increase in value faster if there in the burbs. Typical fill time for the "right" person is 4-6 weeks. You could but somebody in it within a week if you did not want to be picky.
Of course all this depends on your area as well.
Rob Carroll
Anderson Investment
Rob,
When you fill in a person for those homes, do you use owner financing, lease options or sell it outright to him as a owner occupant?
All depends on state law. You should check with your attorney.
In Iowa, it is illegal not to record a land contract within 90 days.
In Iowa, we also have a totally separate provision in the code allowing for forfeiture of that land contract if it is not paid. Alternatively, we can also foreclose if we are looking to seek deficiency judgment against your tenant/buyer.
ive never worked at a mortgage co. but from what i know there usually isnt someone at the lenders office doing a title search of every property to make sure the name on the loan matches up with the name on record. as long as there getting paid every month they have no reason to be suspicious or care.