I am buying these 4 townhome units from this guy. He sufggested a sub2 deal or a wrap around mtg. He sinvce talked to this idiot attorney which scared him away from deeding the titles over to me.
What can I do? A simple contract for deed, or is there another way to get the titles without the banks calling them due. And I know the chances of the loans being called due are nill, but I need a way to convince the seller.
I have done sub2 's in the past and they worked out just fine. The seller wants to be rid of the properties and is concerned about me forfeiting on the payments.
Please someone help me structure this deal. I am in Texas.
Thank you so much.
Well, it is natural an attorny will advice him not to do it. What do you want to do with the property? it all depends on that. You could negotiate a discount and get a loan if you want to keep it.
Talk to him and explain to him that buying on a wrap allows him to foreclose on you if you do not make the payments, but if he feels comfortable, you will escrow 2 payments in advance.
I want to keep a majority of them and I have about 2 tenant buyers that I can retail them to. Maybe in the furture, I’ll do the same with a few more, maybe not. There are 4 all together.
I dont really want to get a loan on them right now. The current interest rates are great on them, like all in the 6 range. Plus I am 1099’d currently , so I can’t really prove my income. And I dont want closing costs, when I can just refi in a year or 2 and dsave that money.
What about a owner finance type deal or sub2 in a landtrust?
Thank you for your response.
Please someone, any advice???
I don’t get it… what exactly is your question? the seller does not want to sell on wrap or sub2 and does not want to keep the loan in his name. He is running things by his attorny who will advice him not to do any deal other than cash out.
Your options are to get a loan, let go of the deal, beat him up till he sell to you sub2.
well I guess my question is how to structure the deal. I am thinking owner finance or some other way to gain possession but maybe not go on title. Not going on title will ease the sellers stress relating to the DOS clause.
The deal itself seems to be great. Cash flowing from the get go about $300-$400 per month.
I think I ma going to try to do a land contract/contract for deed with him?
What do you think?
You can do land contract or lease option if he is willing to go for it. Just make sure you are no in Texas
I am in Texas, so lease option is probably out. I was thinking Land Contract???
To be clear, you can lease it from them in Texas but not lease option it to someone else. If you want to keep it, then you can get it on lease option.
No land contracts either in texas.
Thanks fro the advice. No land contracts in texas? Since when?
Land contracts were a thing of the past back in 2001…
L/O’s are another thing of the past…
Sounds to me like trying… “desperately” to make a deal work… that will get you into trouble…
There is “no substitute” for finding a motivated seller… then your deals witll go together… sure every now and then… a second basemen (the attorney) will come along a screw it up, but, if they are mtoivated… that’s few and far between…
Plus… cashflowing 300 - 400 a month on 4 props combined… that are rentals… is not cashflowing…
Depending on the numbers… that’s probably a recipe for disaster…
I am despertly trying to get the deal done. I’m in Texas, and $300 or $400 cash flow a month is a gold mine where I am it, due to market conditions, comptition, etc etc. So I’m going after this deal quite aggressively.
The seller is motivated, just concerned. And I havent done enough deals to where I can ease his mind and actually know what I am talking about.
I think I have convinced to just deed the property over and we’ll make it work like t6hat.
Thanks everyone for your comments. Any more advice is always appreciated.