How Do I Make This Work?
Hi all; I'm looking at a possible sub-to deal (my first, so be gentle). I just ordered, but have not received, John Locke's book. Here are the #'s:
Mortgage balance: $163k
Repairs: $5k
ARV: $200-210K
Homeowner will sell for $180.
They are going thru divorce and want out fast.
Does Mr. Locke's book detail the forms/paperwork needed?
Any help would be appreciated.
The best subject to deals happen when you buy for the balance of the mortgage.
As to forms...
I also say that you need to consider forms that are legal in your state. Hence, very few courses will offer you forms that seller implies can be used without first being reviewed by someone who up on the local laws.
Buying subject to does not have a lot of complex forms. It is mostly about doing a land contract sale where you are buying the property subject to meeting some specific requirements (paying off the loan before receiving the title).
John's course is great. I would still use a local lawyer to draw up the contracts.
John
[addsig]
Are you going to L/O or sell? If you are going to sell you need to factor in holding time and RE commission if selling coventionally. If the sellers are truly motivated I think they should go lower with their ask price. Good luck!
Hello,
Let's run the numbers.
You'll have $185,000.00 into it.
You'll sell it for $200,000.00.
You'll get $15,000.00 after the sale, $12,000 (@6%) will go to the realtor which then leaves you with $3,000. You put $5,000 into it, and you're getting $3,000 back which is a 2k loss.
If you're not going to use a realtor, then you've just saved 12k, and when you take out your initial 5k, you'll net 7k, not accounting for holding cost.
I always run the numbers, accounting for a realtor 'cause I like to cash out at this point.
Thanks :-D ,
OTW