Subject To with Equity

[Patrick Churchill]

I am looking to acquire a property in which the owner already has 100k equity and wants the 100k at the transaction in order to "remove" their equity and move on to their next property. Naturally, I do not have 100k just lying around. What is the best way to go about this issue? Should I ask them to refinance and then go through with the transaction? Should I try to take over payments until the mortgage is paid off and then seller finance the rest? Should I try to create the 100k, make the transaction, and try to refinance? Thanks!

[Elizabeth Seiferth]

Could you put any money down and then seller finance the balance? IE - a hybrid like suggested above.

I am looking at a property in which I am going to see if the seller would consider a hybrid scenario. In my situation, the property has been listed for 130 days at $649k. They have a 2.9% rate on 385k which I would want to Subto. I want to keep the entry cash at about 10% of the purchase price, and will see if they would entertain seller financing for the difference (roughly ~200k). It would be a short term rental and would provide about 2k of cash flow a month versus a traditional purchase which would maybe break even 🫠. 

Or if you don’t have the 100k and they won’t entertain seller financing, you might be able to find a private money lender for the 100k!