Subject To

[Jason Morgan]

Good morning BP posters, I had a question about doing a subject to. How much are typical closing costs when doing a subject to and is it possible to do a lease option first and put in the lease option the seller has to give me the option of selling the home subject to the current mortgage staying in place? I ask the question because I am mainly focussing on doing lease options but what if the seller doesn't have the cash to fix up the place, minor stuff like painting and carpet and if I have to use my own money to get the lease option rentable, I'd want to get a subject to rather than a lease to have some ownership of in putting money in before I even have a tenant. How I would present this to a seller would be an initial lease with an option to buy. I would then go over with the seller what the needs to be fixed up to get the place rented. If the seller balls on spending the money I could transition to doing a subject to but if most of my cash will be spent on doing renovations I would like to delay the closing because I would need to build up more cash for closing costs. Your thoughts?