i have a deal where a guy will deed his house to me, there is only about 10-15k in equity and only a 75 dollar amount cash flow, nothing that i really want to deal with, however im sure i can find someone who would pick this up for 1-2k. how do i do this? do i have him deed the house to me first and then i just find someone to take over the contract later? also if thats how its donw what happens if the person defaults on the loan?
This is called subject to. If you get the deed, then you own it. There is no contract to assign. I would find a subject to investor and birddog the deal to him. If you can handle the monthly payments till it gets sold, then you need to get a cash course in subject to
i understand that is sub 2, what im wondering is once i take the house over and have someone in there, then i want to give this deal to someone else because i dont want to mangage the property how can i do this. do i assign the contract over to someone else?
If you take the deed you own it. You don’t assign any contracts you would sell it to the new investor. You can have hime cash it out or do owner financing and do a wrap around mortgage keeping the subject to mortgage in place or just turn over the subject to mortgage to him.
If you have a tenant in the house you would pro-rate the lease at closing and assign the lease to the new buyer.
The problems arrises if the new buyer does not pay the mortgage. What kind of commitments are you giving the person you are buying it from?