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Updated almost 10 years ago on . Most recent reply

User Stats

108
Posts
25
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David S.
  • Investor
  • Fridley, MN
25
Votes |
108
Posts

Subject-to basics checklist

David S.
  • Investor
  • Fridley, MN
Posted

I've been trying to learn as much as possible about creative financing. I want to see if I have the idea behind Subject-to deals down. Are there additional things I am missing? I plan on posting checklists asking the same on wholesaling and owner financing deals.

  1. 1)Find a property via
    1. a.Marketing
    2. b.Networking
  2. 2)Talk to the potential seller and find out
    1. a.Why they want to sell
    2. b.How much they want
    3. c.What they owe
    4. d.Any other liens/encumbrances
    5. e.Condition of the property
  3. 3)Decide if it is worth it
    1. a.Evaluate potential ARV
    2. b.Find comps
    3. c.Gauge rent potential
    4. d.Determine what you think it’s worth
  4. 4)Sit down with the seller
    1. a.Convince them to sell
    2. b.Discuss terms
      1. i.Cash payment for equity or
      2. ii.Straight up assume the mortgage
    3. c.Sign a purchase agreement
  5. 5)Go to county office, get deed transferred
  6. 6)Get insurance on property, with mortgage company as additional insured
  7. 7)Have seller move out
  8. 8)Start paying mortgage
  9. 9)Fix/rehab, then rent, lease to own, or sell

User Stats

1,158
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655
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John Horner
  • Flipper/Rehabber
  • Columbus, OH
655
Votes |
1,158
Posts
John Horner
  • Flipper/Rehabber
  • Columbus, OH
Replied

You need a title company to close on the property and transfer deed. It is a sale not jut a transfer. You probably want an attorney to write a contract and possibly additional disclosures for this situation.

I am not sure what you mean by "additional insured", but in the state of Ohio it is illegal to have 2 insurance policies on the same property.

Search in the forums here, some banks are starting to call loans due if the deed is transferred.

  • John Horner
  • User Stats

    108
    Posts
    25
    Votes
    David S.
    • Investor
    • Fridley, MN
    25
    Votes |
    108
    Posts
    David S.
    • Investor
    • Fridley, MN
    Replied
    @John Horner:

    You need a title company to close on the property and transfer deed. It is a sale not jut a transfer. You probably want an attorney to write a contract and possibly additional disclosures for this situation.

    Thanks! That is a good point to remember. 

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