Which Method QCD Or Subj2?
I have a close friend who is downsizing and has offered her SFH to me for the balance due on the mortgage. No additional cash requirements, just the cost to close the deal. I intend to keep the house as a second home but I'd like to get cash out as soon as the deal is seasoned. Equity in the deal is over $150K.
The current mortgage balance is ~$122K. Should a quitclaim deed be used to do this or should it be set up as a subject-to purchase? Which method works best to make this deal happen?
Boy .... you have some friends
I second that....... as far as getting cashflow .... start advertising... word of mouth...asap.... as far as quitclaim or subject to purchase.... one of the experts should respond to ****Must Reach Freshman Investor status before posting URL's*** ... anyone in the escrow business....
"Sub. to" is where you take over the payments. A QCD is a method for transfering the deed. It's not an either/or thing.
So that the lender doesn't play the due on sale card, I'd have your friend put it into a land trust, and then make you the beneficiary. He'd probably end up QCD-ing the deed to the trust.
wvc,
Here are a couple of links to show you about Sub to investing.
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&sid=146
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&sid=266
Hope they help.
John (LV)