Hello. I just received an offer from Mono RE LLC / CDK Investment to purchase my home, which is currently on the MLS, at the full listing price. It seems too good to be true and I am currently trying to research the company. I have asked for their EIN, state of incorporation and names of principals and also a copy of the detailed contract.

It's not a traditional purchase offer. They are offering to cover all closing costs except the seller commission, give me 45% at closing ($33k) and the remainder ($48k) over 360 months. The mortgage remains in my name, but they have full use of the property. If they default, the home reverts back to me and must be returned in the same condition.

Below are the FAQ's they sent with the offer:

What Kind Of Offer is This?
This offer is based on a subject-to-arrangement. In contrast to a standard cash or hard money offer,
the current loan isn't settled at the closing stage. Rather, the pre-existing debt remains under the
name of the seller, while we, the buyers, assume responsibility for all payments. The gap between the
remaining loan amount and our complete offer price is given to the seller at closing.
How Do You “Take Over Payments”?
During closing, two key documents are drafted for subject-to-transactions: a Limited POA and a
Promissory Note. The Limited POA allows me, the buyer, to make mortgage payments on the seller's
behalf. The Promissory Note outlines the monthly payments and duration, matching the seller's
existing mortgage terms.
What Happens If We Default?
To ensure sellers feel secure, our contract explicitly states that if we miss even one payment, the
seller regains full ownership of the property within 30 days. If a payment is missed, may take the
property back under the terms of the promissory note we will create at closing, and the seller keeps
all upfront funds and the property, which they can then resell or use as they wish. The contract also
requires us to return the property in its original condition in case of default. We're open to adding any
other protective clauses as needed. We are professional buyers committed to fair and secure
transactions.
Who Pays Closing Costs?
The buyer covers all title fees for both parties. The seller is responsible for the listing agent
commission and any outstanding liens or back taxes
Key Points:
This is not a loan assumption; the loan remains in the seller's name.
The seller stays in the second lien position until the loan is fully paid.
The buyer handles all future property repairs and maintenance

I would love to hear from the BP community about whether this is legit and what exactly this company's end game is (how are they using the property and how are they making money). Of course, I only have an offer at this point and no actual contract. Thanks!

Mobile, Alabama

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