Subject To - Best Way & Common Issues

[Michelle Rukny]

Hi everyone! 

So it's officially here, my first transaction as an investor! My nerves are shot but I'm excited too! I wanted to know what your best practices are in regards to paperwork and how you include the "fee" paid to the seller on paperwork. Title is backed up because of holidays so I'm not getting much help or advice there. 

Does the purchase price include the fee to seller or is that negotiated separately? What are some common issues you have had with these types of transactions?

Specs: 

$40K takeover (including seller fee and delinquent balance)

Loan Balance after 40k contribution is $187K.

So is the sales price $187K, $227k or $227 (minus the seller fee)

Thank you in advance and your advice is greatly appreciated!