Questions Re: Sub2's

General Real Estate Investing
1

Hi All:

Trying to get the In’s and Out’s of Sub2. If I did a Sub2 in my LLC’s name:

  1. How would I be able to refinance the property without involving the Seller? Or would the Seller have to be involved since there name is on the mortgage?
  2. How would I be able to sell the property without involving the Seller? Or would the Seller have to be involved since there name is on the mortgage?
  3. Would I be able to re-finance the property without the LLC having any income? Or would I have to do that in my name?
  4. From reading some of the post, it seems like I can accomplish a Sub2 deal with a Quit Claim deed. Is this true? I don’t know anything about Land Trusts (a brief explanation of Land Trust and how to start one will also be helpful).

dlmcgill

2

#1, once you own the property the seller is out of the picture. If you refinance, the bank is going to run a title check on the title and get the property appraised. They will pay off the sellers loan and your name will be on the new loan with that bank.
#2, again, once you own the property the seller is out of the picture. Your name is on the deed, you are the owner. You can do whatever you want with the property, however you are still morally obligated for the sellers loan.
#3, if your LLC is new you will have to do it in your name.
#4, use a warranty deed. If your not familiar with land trust don’t lose the deal over it. Just take title in your LLC’s name. Keep it simple. Good luck.

3

Thanks draegarfrog.

Do you happen to have a sample warranty deed that you could send me?

dlmcgill

4

Check your email. :wink:

5

Thanks a million draegarfrog!

dlmcgill

6

anytime