Subject to, Guidance and Education.

[Anthony Johnson]

Hey BiggerPockets!! Hope everyone is having a wonderful March full of blessings! To cut to the chase, without delving into the nonessential verbiage. What paperwork is needed through out an entire "Subject to" transaction, so I can better educate myself. I understand(or think I do) I will need my o Subject To Contract (if someone doesn't mind elaborating or giving advice based on their experiences)signed by an attorney. o POA to make payments on the mortgage o Authorization to release Loan information o-----release of insurance information o 1978 Lead paint release And are there any resources that you would recommend for the paperwork portion. Respectfully, Anthony D. Johnson

[Robert Herrera]

@Anthony Johnson great job on doing subject to Investing.

Add this tool to your belt!

I am doing similar investing, but i actually partner with the homeowner, so there is no Buying Subject To, as the owner is still in place with me. We start an LLC, we put both our names in it, as a 50/50 partnership. Quit clam the Deed into the LLC. I pay the mortgage to current, but make sure the home owner is out and the Locks are changed, as they can just move back in or stay after you pay the mortgage. Not a good situation to be in when you're out thousands and they are living in the house all happy for free.

I rent it out, and give them half of the Net cashflow. If there is a lot of equity, we sell the house, and split that.

Makes it easier to get home owners to work with you, and looks less predatory if it ever goes to court. 

Happy Investing