I am a real estate agent in ohio but I like to think out side the box as far as REI. I do own a few properties as rentals, but I have been reading about this Sub-2 and it sounds like something I would like to get into. The deal I need advice on is I have a past client call me he lives in flordia now about the home he bought a few yrs ago for $129,000 he had a tenant L/O it for 2yrs the problem he is having now is the wife got very ill and they have not been paying there rent. So they will be moving out in June I stopped over and took a look at the house and met with the tenants very nice people just down on there luck. Now he want to sell the home and sell it fast because he can not afford to make the payments. He owes about $119,000. The homes in the area in mint condition are going for around $155,000 - $170,000 but this house needs some work the furnace needs replaced it has been red taged by the gas company and the carpet in this home looks like they had a peting zoo inside the home. Very nice neighborhood. He told me he wants me to list it at $134,000 for a quick sale. I should be getting the listing contract back today 3/4/05. By the time he sells the house after all of the fees he might net $2500 and that does not include getting the furnace replaced or fixed. So I would like to offer him a Sub-2 Deal where I take over the payments I’m just wondering how others would get this deal set up. I have no problem finding a tenant for this property so I would not worry about me making the payments even if I did have to make them I have the cash to do it. Some help on how to set up this deal and some basics of what I would need and what I would need to do as far as taking title to the home since he is in flordia.
Dustin,
Glad to meet you.
There is no problem if your seller is out of state as the paperwork can be Notorized in Florida and will be legal where you are.
You have hit the nail on the head as to what the seller will receive when the property is sold, so you have that part of the deal already done. You can offer him the $2,500.00 and tell him you will take over the property and make sure the payments are made.
The paperwork is a different matter, you will need State Specific paperwork to conclude the deal and since you work with title companies I would find one (Good Luck) who is familiar with Subject To investing and ask them if they have the correct paperwork.
Only you do not need to use them for closing unloess you feel the need to, just make sure you do your due diligence. Part of that would be a preliminary title report, this is what the title company should provide along with the proper paperwork.
John $Cash$ Locke