sub2

[Bill Schultz]

I studied creative real estate investing years ago but havent looked at it in a long time. I am thinking of doing some marketing for sub2 sellers. I dont have too many forms, but I figured if I found one of these deals, I could hand it over to my attorney to make sure its done right. Any thoughts on this? I dont want to jump and make a mistake. I have studied this before but its been many years.

[Brian Gibbons]

Hi Nathan,

The paperwork for sub2 is involved and I am reluctant to go into huge detail here on a public forum, but...

"It is understood that the Property will be conveyed by General Warranty Deed (unless otherwise required) subject to taxes, existing zoning (unless otherwise specified in paragraph 16), covenants, restrictions and easements of record.

1. Total Purchase Price to be paid by Buyer is payable as follows:

A. Binder deposit which will remain as a binder until closing, unless sooner forfeited or retained,

according to the provisions in this Agreement. $________________

B. Additional binder deposit due within ______ days after acceptance. $________________

C. Balance due at closing (not including Buyer's closing cost, prepaid items or prorations) in U.S. cash or locally drawn certified or cashiers check. 

approximately.____ exactly ____ $________________

D. Proceeds of a new loan to be executed by Buyer to any lender other than Seller. $________________

E. Purchase money loan to Seller on terms set forth in Paragraph 2B. $________________

F. Other financing $________________

G. Existing mortgage balance encumbering the property to be [ ] paid off, [ ] taken “subject to”,

by Buyer (approximately). $________________

H. Net amount paid to Seller in addition to paragraph 1G. $________________

I. Total Purchase Price approximately ____ exactly ____ $________________"

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Learning "piece meal in a forum contracts" is not the way to go.

Find a reia and ask for an attorney referral that knows sub2, lease options, land trusts, jv agreements, syndications, flipping, etc.

Your attorney is a major key in this REI Business.