Subject To?
Hello all! I have a deal and don't know if it is a waste of time or not. So here it goes.
The seller owes 148. The property is worth 180-190. She wants to move to go somewhere else. She needs about 40k down, and about 5k to move. It needs minimal repairs and is a nice 3/2/2 th in florida,. palm beach. Would this be a good sub to deal? My problem seems to be understanding or recognizing a sub to deal. I hae been reading for nine months and I know and understand how to structure one, just not confident when to recognize one. Thanks in advance to all the pros who can help me. 
She owes $148K
She needs $5K to move
She needs $40K to put down
Property value $180K-$190K
How would you profit from this?
I just am making sure that there is not a subject to, that I am missing, some creative thing where this is a deal that's all. If I have no deal that is all that needs to be said, thanks for responding.
If you want to pay retail for a property and acquire it Sub2 then sure, you can do this. You and the seller should be clear on the fact that the lender has the right to excercise the DOS. As long as both parties understand this and are OK with this, Then It's a go. It will be difficult for you to profit from this property until its worth more than what is owed though. However if your reason for doing this is to acquire the property and live in it without tying up your own credit, this is one way to do it.
oo7icu,
This does not even resemble a creative real estate Subject To deal the way you described it.
Until you learn that you are in control of the deal and how to show your seller they do not have their imagined equity in the property then you might as well just go out an pay retail for any property you find.
There are many way to structure this deal, but not paying what the seller wants.
John $Cash$ Locke
I would walk away...
you have no deal there......
Thanks for the info. I am open to creative ways. I was just stating what they wanted, that does not mean that is in stone. Please feel free to give me an example of how this would have worked out. I have considered this dead, however I always think about my dead deals in case I missed something. Thanks again!
You could just tell the seller you are willing to assume her mortgage of $148K. That is bottom line. After all, she is the one that is desperate to sell. If she is moving she won't want to make 2 house payments, that is for sure!
HOWEVER, percentage wise you are still buying at 82% of value. That is still not much of a discount for you. Shoot for 60-70% (some may say even lower.)