I have a house with a FMV $190,000 and the mortgage is around $182,000. The owner already transferred to other state. The house is in a nice neighborhood and in good condition but is listed with a realtor now. If I want to buy it “subject to”, who pays the closing cost? If it is me, how do I make profit on it? If I do L/O, when the T/B buys the house, who pays the closing cost? Some home studying courses tell you to pay the closing cost so there is no money out of the sellers pocket. I am confused on how you can make money by doing so. Can anybody explain?
Good question, Id like to know that too.
I have the Claude Diamond R.E. Investing Program. From what I learned from that, when you L/O it, I know that the contracts that came with my program has it stated in there specifically that the T/B is responsible for all closing costs. I report my T/B payments to their credit reports to be certain that once their lease option is up, they qualify for the loan. If you get a descent credit score, it’s not difficult for the T/B to be able to qualify for an FHA, 100% or 103% financing.
As far as commission fees, EVERYTHING is negotiable when doing this yourself! Maybe see if the sellers will either take care of the commission seperately, or see if they would be willing to take that percentage off of your purchase price. They also could simply ask their agent to take it off the market. That’s very simple to do if foreclosure is eminent or any other good excuse they could come up with. Or simply take the agent some cash to take it off the MLS.
Hope it helps! There are many different options out there!