SUBJET TO
I guess this one goes out to big daddy Locke my question is....with subject to I understand you take over the payments but how long does it take on average to get a buyer? with limited funds would this be feasible, say if you only had enough money to make 4-5 maybe 6 payments
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Tonyy,
If I have a property over two weeks before I find a buyer, then I get nervous. Since I am not a nervous person
and do not want to be. I make sure my marketing and advertising makes short work of the property in finding a buyer.
There are different situations with all properties, but if you bought it right and the 'Bloods' are not your next door neighbors (it takes me three weeks in this situation) then the home will sell they always do.
One of my better quotes from my car lot days is 'there is an ass for every seat' so goes the story for homes.
John $Cash$ Locke
my wife and I are really intrested in REI but its the whole Idea of the bank calling the note do. the new buyer does he get a bank morgage or does it take 2-5yrs on the previous owners mortgage? I just don't know enough I need more input.
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i was also wondering ? if i obtain the property on a land trust how will this affect the sellers credit ...example i buy from a distressed seller using a land trust then the seller ,say after a year or so ,runs into some money .... since im the beneficiary and also my buyer is a beneficiary how perhaps will this affect the original sellers credit or buying power
Tonyy & Jerr,
The good part is Jerr made the investment in my course, so in a few days the majority of your questions will be answered when my manual arrives.
Tony, on the other hand I can state this without question, I have bought and sold over 500+ properties never had a loan called. Can it happen yes, are there ways to do things so that this problem is not one to be concerned with yes. I cover part of this in my article 'Subject To investing for beginners. If you click on my profile below you will find the article.
John $Cash$ Locke
Jerr,
How you obtain the property really has little to do with your seller's credit. If their loan is still in place because you purchased Sub2, then yes, there's an effect on their credit.
Don't get caught up in the mechanics of the trust, it's just a smokescreen for the DOS.
I've never had an issue with sellers being able to qualify for their next loan. I provide a completed HUD-1 and copies of all documents to my sellers at closing. Typically, the HUD-1 and a copy of the purchase contract is enough to satisfy most lenders.
On occasion I've had to provide a letter stating I'm responsible for the payments and on a recent occurrence, I had to mail copies of processed checks to prove I was making the seller's payments.
So far, knock on wood, all my sellers were given full credit on their qualifying ratios. Sub2 is just another form of owner finance, so in reality, the seller should not merely receive a 75% income credit for the house as they would if it were truly a rental.
I haven't found it to be a big deal, but I think providing the HUD-1 plays a part in that. It was only in recent months that I heard of anyone else doing that.
HTH
thanx trandle , ill see if i can learn more about hud 1 . very helpful information .
Big daddy Locke,
I am intrested in your course, but current situation dosn't allow me to get it right now I am out of the state. but give me a month or two and I will be back
Mr. Locke
What about taxes does your course touch on them?
Would it be safer to use a land trust to cloak the deal?
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Tony,
I recommend to my students they build there team, included in the team would be a Certified Public Accountant or Tax Accountant. The reason for this is that everyones own personal situation is different. Since I am neither a CPA or Tax Accountant it would not be wise of me or anyone that is not qualified to give advice concerning tax matters.
Trusts are one option to choose, using a Trust keeps your real estate transactions private, which is a prudent way to purchase properties in most cases.
John $Cash$ Locke