What deal terms do you use for "subject to" acquisitions

[Benjamin Sussman]

Hey BP Community!

I have been trying to do research online for effective ways to structure a deal for subject to deals and, to be honest, it's hard to find good information out there, and I don't really feel like paying $7,800 for Pace Morby's online subject to class.

For those that have put out subject to offers, how do you structure the deal? What interest rates are you offering, how long of a repayment period are you using, and what are any other important components of the deal that you include?

Thank you so much for your help!

Ben

[Brian Bohrer]

Hey Benjamin,

Generally when you are purchasing a property "subject-to", then you are purchasing the home subject-to the current financing, meaning that you will be under the terms of the loan already in place.  In most cases, a seller who is selling subject-to may want a down payment. if they have some equity built up, but generally they just want to solve the problem of owning their house.  Many times these sellers are distressed and looking for a way to get out from under the burden of the house payment.

You will be taking over their loan login credentials, placing your own insurance on the home and usually transferring title to a trust for your protection.  There are several documents you will also want to file along with the sale as well.  But most of our questions will be answered when you see the loan statistics during the discussion phase when you meet with the sellers.

I hope this helps!  I wish you the best in your real estate journey!  Take Care,