Rental Property Investor · Port Saint Lucie, FL · Member since 2017 · 22 posts · 10 votes
I have an opportunity to buy a house that the seller wants to pay off the mortgage amount and his closing costs.
His mortgage balance is $210k and his mortgage payment is $1600 a month. He offered to sell it to me for the mortgage amount + closing costs and the house needs about $100k of updating. The ARV is $450-500k. It's a slam-dunk.
My question is, he also offered for me to take over paying the mortgage (either subject to or lease to own) and updating the house with the intentions of eventually either selling/flipping the property or refinancing it. How would that work? I could of course go the conventional way of buying the house with 20% down through a lender and paying for updates with my HELOC. BUT, since he offered to let us pay the original note, it peaked my interest. I know people have been creative with subject to deals and I have never considered them in the past and feel the need for my own due diligence.
Any ideas or options would be greatly appreciated...
@Susan Dobbs take the deal and run with it. Take the property over sub-to the loan. It's not that difficult as long as you have the correct paperwork. It does sound like a slam-dunk. Don't be scared, have someone walk you through the process. Check with @Violet Rose as she may be able to help.
@Susan Dobbs take the deal and run with it. Take the property over sub-to the loan. It's not that difficult as long as you have the correct paperwork. It does sound like a slam-dunk. Don't be scared, have someone walk you through the process. Check with @Violet Rose as she may be able to help.
@Susan Dobbs take the deal and run with it. Take the property over sub-to the loan. It's not that difficult as long as you have the correct paperwork. It does sound like a slam-dunk. Don't be scared, have someone walk you through the process. Check with @Violet Rose as she may be able to help.
I have an opportunity to buy a house that the seller wants to pay off the mortgage amount and his closing costs.
His mortgage balance is $210k and his mortgage payment is $1600 a month. He offered to sell it to me for the mortgage amount + closing costs and the house needs about $100k of updating. The ARV is $450-500k. It's a slam-dunk.
My question is, he also offered for me to take over paying the mortgage (either subject to or lease to own) and updating the house with the intentions of eventually either selling/flipping the property or refinancing it. How would that work? I could of course go the conventional way of buying the house with 20% down through a lender and paying for updates with my HELOC. BUT, since he offered to let us pay the original note, it peaked my interest. I know people have been creative with subject to deals and I have never considered them in the past and feel the need for my own due diligence.
Any ideas or options would be greatly appreciated...