How should i tell the homeowner that i can take over their loan and that i will cash them out in a few years?
Would anyone prefer to buy a subject with little equity or a whole lot of equity?
Does anyone here have a plan how i can have my subject to occupied before i ever sign the deal?
:deal:
I send a short note that says:
"We are fully prepared to legally assume 100% of the responsiblility for all mortgage obligations, maintenance and repairs, management and upkeep of your FOR SALE or FOR RENT OR LEASE property. As a real estate investor, I make this proposal in the hopes of obtaining income tax benefits relative to mortgage interest and property taxes. I will agree to pay 100% of your equity in 3 years and reserve the right to sublet the property, while fully guaranteeing the performance of such a pre-screened party re payments, insurance, taxes, maintenance, etc.
During my tenure in our agreement I ask only that you continue the existing mortgage financing in place (at my expense), and that the property be held in a bonafide land trust in your name if you wish). I require only that you name me a co-beneficiary of the trust, and a triple-net lease tenant in the premises. You are not obligated to transfer the property’s title to me until I have fully retired your existing mortgage and repaid any current equity.
At the time of signing the land trust, a triple net lease is created where we place a partner into the property. We work with good people who just can’t qualify for standard mortgages. They can be new in the state, on the job, or self-employed. We fully guarantee their performance until they sell or refinance and pay off the mortgage. They are our responsibility. If they miss a payment, we make it up and serve them notice. If they damage the property in any way, that’s our responsibility at our cost. If they default, we evict them and replace them within weeks if not days.
What is your assurance that we will keep our end of the deal?
Your property is never at risk. It is held in a NARS Equity Holding Trustâ„¢ in your name alone, until your loan is retired and you receive all the money due you. By utilizing this asset management strategy, you are using THE SAFEST and MOST SECURE means of transfer of ownership interest. You never have to worry about anyone’s legal or personal problems attaching to the property, such as tax liens or creditor judgments. Even the IRS cannot penetrate the trust in order to get the property.
In person, I say: “If you will agree to stay on the loan for three years and keep most or all of your equity in place, I will accept full responsibility for the mortgage payments, property taxes, and all maintenance and repairs under a triple net lease. I’ll pay 100% of your equity in three years.”
To answer your question: “Does anyone here have a plan how i can have my subject to occupied before i ever sign the deal?”. Yes, I am never obligated to buy before my tenant is ready to go.
That is the way that I prefer to do a “subject 2”, using a trust – both to acquire the property and to manage it. Of course there are other ways to acquire a property via subject 2 without using a trust and there are subject 2 experts on this forum whom I am sure are willing to educate you on their preferred methods.
Good luck.
i prefer the no or little equity becuz my buyers refi in 2 yrs, and the price is based on the appreciation at that time. besides, most of the time little or no equity usually means new houses and new houses almost always sell faster. lowers ur hold costs. side note: most buyers that buy from us buy on the house, terms and monthly pmnt, not the selling price. i no qual my buyers and get a good DP