A Few Sub2 Q's
The idea of the Sub2 deal is awesome.
I'm just curious if this is what i need to do. I have the lender sign the deed for the house to me. I catch them up on their payments and and start making their monthly payments. I give them a small portion of their equity back out of pocket if i need to.
Do you guys sign a contract with the loan owner saying you will sell after a certain period of time? Have you ever had a bank "call" a loan since the wrong person was paying. What kind of contracts do I need to sign with the seller?
Thanks
Buy a course.
Look into John Lockes course, this will answer all your questions. If it doesn't you can ask him personally.
I'm sure some other courses will help you too, but John's is highly recommended.
trying to do any real estate deal wihtout the appropriate tools (knowledge) is like handling poisonous snakes with no experience.
I would suggest making John Locke a part of your team.. For a minimal investment you get a lot of information and access to the man himself, this is truly a no brainer!
' 8-)
[addsig]
I was given a subject to course by a friend. I recently received Mr Lockes manual and it is a much better course hands down. I am in the process of learning the $cash$ now presentation!
At the risk of being flamed out of here, I'll give you an answer, SW:
First, I agree with everyone else: you can learn a lot here on TCI and elsewhere, but a course of some kind (and John Locke's is excellent: that's the one I'm using) is a definite must to do it right.
To answer your questions:
- I certainly won't promise an exact cash-out date in my contract, because that really limits my options.
- Of course a bank CAN call the loan, but it doesn't mean they WILL; ask John Locke how many "due on sale" clauses were invoked against his 500 houses...
That being said, you should pay very close attention to the wording of the seller's mortgage document before you take the property sub2.
Also, if you go into the deal with an exit strategy that includes the bank calling the loan (like lining up a fast, no doc/interest only loan from your friendly mortgage broker), you should be fine.
- Your last question is way too broad; don't expect a response to this as it really depends on what state you're in and how you structure a deal: this is where a course would come in handy (although I pass on the caution that if you get a course with forms, make sure you get those forms checked out for legality in your state).
Andy
thanks for the replies I'm def going to order the locke course and if anyone is feeling saucy they can maybe send me a copy of a good sub2 purchase form. Does something like that come with the locke program?
yes, every form you need comes with it. $Cash$ suggests you have a lawyer look it over since laws vary from state to state.