New investor learning the subject 2 process. In Texas which process should be used. Wrap around mortgage, Land Contract, or Deed for Trust? If it could be anyone of these (all can be used) can you explain the difference? :hammer
All you need is a deed if you are paying cash and buying the property subject to the existing mortgage. You can use a wrap around mortgage which has a note and deed of trust as the basic financing instruments if you owe the seller money toward the purchase price. You can also just use a note and deed of trust which would create a second lien on the property. You can have the property deeded to you or to a land trust or a corp of some type or a partnership or an LLC. The cheapest and easiest is to deed into your own name. If you are worried about the due on sale clause in the sellers deed of trust you would want to set up a land trust and follow CASH’s course. The other forms of ownership may be of use for certain circumstances and will be more expensive to set up. You have to weigh the costs and benefits and risk of each and decide what to use.
Hope I helped a little
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737
Thanks that really helped to clear up some of multiple ways to take ownership using subject 2 investing.