Sub To Deal With Listing Agent Involved
I have done a sub to before (one) and am pretty familiar with the dynamics. I am also a licensed agent in my state (GA). In a search for a second/investment property I have come across a house getting ready to enter into pre-foreclosure (the listing agent disclosed this to me). I was not looking for sub to possibilities or pre-foreclosures. This is an actual property I am interested in buying that happens to be in pre-pre-foreclosure. No notice of default yet.
I do not have all the details about amount owed, amount in arrears, etc but I just barely touched on the idea of creatively structuring a deal with the buyer, when I was talking with the agent. I explained that I would be willing to compensate the agent and make sure the buyer was fully comfortable with the situation also. Here is my question....should I just take out a loan (that is what I was planning to do) to buy the property..it is below mkt value and needs work but that what I do- I would use it as a weekend getaway, fix it up and sell in 2-3 years....or try and structure a sub to deal? If I can save some up front costs and not tie up credit I would prefer to do the sub to and agree to refi within a year or so. With the sub to, if it is listed at $180,000 there is obviously 6% built in so I can automatically reduce the selling price by $10,800 (the 6%) and work out some sort of deal with the agent correct?
Any suggestions on how to structure the deal compensating the agent and also the buyer if she owes roughly $160,000 on a property that is probably worth $190,000+...even more once work has been done?
Thanks in advance-
BTO
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