Here is the scenario:
Property is worth 279,000
He owes 223,200
Wants to subject his loan for 195300
property is 5 units and with cash flow (after expenses and mortgage) 780.00 a month
IS this a good “subject to” deal or should i employ another strategy
$The $27,900 dollar question is…Where is it?
need more info
THanks to responding… The loan thats in place under his name has a balance of 223,200. He wants to leave it on the table for me to take over for a payment of 195,000, which will not go to the loan balance, but I guess the benefits for me is that I can receive the cash flow out the property and then resell the property the for the retail price. Will this be a good investment.
NO,
He wants 195k payment ? He gets to keep it and not credit it to the loan ?
If you are making a payment to him of 195k and it is not going to the loan balance then you are being screwed. Not a good deal. Because in real life you would be paying $ 418,200 for the property when all done.
Perhaps The explanation of your deal is not coming across very clear, Darin