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Updated about 3 years ago on . Most recent reply

Account Closed
  • Investor
  • Indiana
19
Votes |
39
Posts

Can I buy Sub-To for my LLC even though I am 17?

Account Closed
  • Investor
  • Indiana
Posted

I've been wholesaling for a little bit now and from time to time I run into deals where a creative solution is not only viable for the seller but viable for the investor as well. Well, to cut the story short, I found a beautiful 3/2 that's been being used as a rental. I'm in Indiana but I wholesale in San Antonio only, and I intend to move there very soon. 

The seller doesn't "need" a sub-to buyer, but after explaining to him the benefits to him and me he wants to. I have the reserves to sit in this thing for over a year + all of my expenses as a human, but I want to move into one room and rent the others out for ~$500/month as they do in it's market. 

So, I'm 17 which made contracts a little funky for me, starting out. I do everything within my LLC and I have an "officer" of my LLC who owns 0% of it but has the authority to sign documents whenever I appoint him to, and only until I'm 18 (this coming January).

That's how I've been wholesaling, I just do every other aspect of it and he docusigns it for me. Would I be able buy this property subject-to legally using this method? 

If it is any you are going to warn me to make sure I have reserves, wait until I have reserves, more consistent income, etc, I am currently doing 3/4 transactions a month and I am more than confident that I will further ramp this up. Another aspect is that the monthly PITI is lower than what both other rooms would rent out for, so it's kind of a steal! My plan would be to do this for a couple years and either I'd find another creative finance deal to buy for myself and rent the 3/2 out normally and after 2/3 years of credit to refinance the property and get it on my own loan. (At the projected interest rates of Q4 2023 released by Fannie Mae, it should still cashflow a few hundred bucks even after capex and vacancy)

I don't want to ask my title company, because I don't know how they would respond. If I can't, it'll be okay, if I absolutely need to wait then I would try to see if the seller would be up for a master-lease option with a hybrid of subject to, but he does seem like the type of guy who would. If I can't do that I would be able to get a partner (who is of age) to get an option on the property and wholesale it to me once I'm 18. 

If I can't do that, or if there's a better way to do it, please let me know, how, and why. I greatly appreciate any and all feedback.

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