How To Market & Sell A Subject 2 Property In Texas
I am doing my first subject 2 deal this weekend. I am in Illinois and the property is in Texas. Does anyone know of any websites that get a lot of traffic that specializes in advertising houses with owner financing? Or does anyone know in what papers in Texas that I can get a good value for my money? Any help would be a greatly appreciated!!
How do you plan on selling it Lease Option??
BBagnall,
The preferred method of selling in Texas is using a Wrap, not a CFD as there are to many hoops to jump through and if it is not done properly the deal can be unwound.
John $Cash$ Locke
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Definately sell on a wrap. The foreclosure process is quicker in Texas than it takes for me to evict in Michigan.
If done as a refi, a down payment is a moot issue. With a L/O though, if new financing is obtained, the lender will likely want to see proof (photocopy of payment, bank deposit slip, and monthly bank statement).
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Thanks LeaseOptionKing
You do need a landlord policy for not only the "interior", but also loss of rents AND liability. Check this article out:
http://www.thecreativeinvestor.com/modules.php?name=Articles&file=article&articleid=472
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The confusing issue (especially to many mortgage companies) is that the Association "owns" the structure(s) in most cases. The units (walls in, floors up, ceilings down) are what are owned by the Association members. In other words, the mortgage company should not be named as such on the Association policy, but rather the unit owner policy, as the unit itself is collateralized, not the entire structure....
In your situation, nothing changes on the Association policy for the buildings. You (your trust) should obtain a landlord-type policy for the actual unit, naming the mortgage company as such, and the prior owner as the Additional Insured only (see article).
There is a benefit in having the same insurance carrier for the unit as the Association. If/when a claim occurs, you should not have any gaps in coverage between the 2 policies...feel free to send me a PM if you are still confused...
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You got it!
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well if the women wants it paid off i dont think you want to lease option it. what i do with sub-to is find a buyer right away.
Take the property in a trust and record the quit claim to trust. after you have it recorded make up the back payments and bring it current. Now, find an agent and put it on the market and sell asap. You dont have to tell the bank anything or they dont have to knonw anything. Bring them current and sell it. Make sure your buyer is a conventional buyer.
P.s. i usually give the seller 1000.00 to move out. I give them half when they sign the deed over and half when they actually move out.
The house was gutted and is about 80% completed. I believe the mortgage is current. I want to finish the rehab and sell it withour incurring the costs of actually buying it.
yes as long of she doesnt mind you doing this, its no problem. Look into everything you need to know about transfering the insurance policy or the rights to it.
Is there any kind of standard contract for a deal like this?
The house was gutted and is about 80% completed. I believe the mortgage is current. I want to finish the rehab and sell it withour incurring the costs of actually buying it.
well you can write up a purchase and sales but it wont be very useful because you will have the deed to the house. the only contract that i would have would be a disclosue to protect yourself. I use one from jeff kallers course that i liked. there is really not much to it. I always use a land trust to do the transactions.