"Subject 2 Contract"

[Stoney Lowstetter]

Hey guys,

So we found a deal we are working on, and we're going to use a traditional bank and mortgage for it. However, from listening to the podcasts for awhile, I realized that a "Subject to" deal could be perfect for this.

The seller has accepted a job in China and is leaving around August 20, 2016. We could go through the longer closing with the bank, or go through the creative financing route. We could make more money from the deal, and also get the seller a bit more profit for them by doing it that way.

Long story short: My main question is, I was wondering if anyone had any sample contracts I could use for making the person feel more comfortable. The person is a manager at the place that I work, so we are all fairly close and trust one another. I want to do it right.

[Gerald Demers]

@Stoney Lowstetter, first off, have that conversation with the seller in people speak, not investor speak.  

"What if I have a way that you can sell your house quickly today, get a great price, not have to change your schedule to show to other possible buyers that may or may not be able to close, and close on the exact day that works best for you and never have to worry about selling before you fly?  More cash and the perfect schedule.  Is that something we should talk about?"

Then capture your agreement on any piece of paper and it's a legal contract.  It does not have to be formal.  Tell the seller your real estate attorney will write it up formally and get started on the closing work.  I have seen a purchase and sale on the back of a business card.  

Alternatively, each state's real estate board has an approved P&S agreement. Just get a copy of it and capture your agreement there. Or, before you sit down with the seller, call your RE attorney and ask for a contract knowing he will be managing the closing.

Gerald Demers