subject to

[Lee S.]

I've not seen the answer to this question and i'm hoping someone can help.  I understand subject to and roughly how to handle a deal like that.  What I don't understand is how to handle a subject to deal where the price agreed upon does not match what is owed on the loans you are taking subject to?

Example, (these are made up numbers):  House worth 200k, current loan on house is 80k and I have an agreement with seller for 115k.  They are willing to do subject to on the 80k.  What options are there to deal with the other 35k?  Do you make a note?  Cash?  

[Brian Gibbons]

Originally posted by @Lee S.:

I've not seen the answer to this question and i'm hoping someone can help.  I understand subject to and roughly how to handle a deal like that.  What I don't understand is how to handle a subject to deal where the price agreed upon does not match what is owed on the loans you are taking subject to?

Example, (these are made up numbers):  House worth 200k, current loan on house is 80k and I have an agreement with seller for 115k.  They are willing to do subject to on the 80k.  What options are there to deal with the other 35k?  Do you make a note?  Cash?  

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Hi Lee

I have many videos re sub 2 and land trusts on http://www.biggerpockets.com/blogs/3-reiskills-and-brian-gibbons

I look for sub2 home sellers that want to allow those payments to be taken over by someone who will make those payments on time 

and to give them a note that is beneficial for me on the lease to own arrangement exit strategy

say market rent is 1500 

I want to pay no more than $1000 a month on all payments, sub2 and note

You have to be creative creating the note 

you can have a moratorium on payments which are no payments for a period of time, interest only, no payments for a year, etc

Make the deal work for you