If I would like to do a Sub2 on a property that is in the preforeclosure stages, (forebearance) What are some of the pitfalls that I could run into? I have years of experience in real estate and financing, so I have a clear understanding of how alot of it works. Every once in awhile I have the opportunity to do something like this and I always pass it up because I never look into it. What documentation do I need to have filled and filed? Here’s the situation on the home.
- Client owes $60,000 on the home. (he has lived their for 11years)
- Home is worth 90-95k. (comps support the value)
- Home is in good condition
- Client is ready to do this.
My plan would be to get the deed. The client would move out of the home I would lease w/option. I have the ability to check credit very quickly, as well as determine if the leasee is financable. I would like to try to flip within 1-3 months. I have the cushion money to make the payments if the home sits vacant for 3-4months. Any of your expertise would be greatly appreciated. Also, would it be out of line to offer a percentage of the net proceeds back to the client upon the sale of the home? Sorry for the long story, I just wanted to give as much info as I could.