How do I structure this deal

[Phillip Lanier]

Hello BP friends,

I am looking for any insight on how I can structure the following deal. I have negotiated a "sub to" deal where I will be paying the owner $3,000 and getting the deed subject to an existing mortgage. The house will need about $30k in repairs. I have an end buyer that will take the property as is and he will take responsibility in the repairs. My original plan was to owner finance it to a buyer, doing a wrap on the existing loan. However, the buyer is able to get an FHA loan for the purchase as well as the repairs. The challenge is, FHA requires a 90 day seasoning on the title. So here are my options that I'm aware of and am hoping someone knows of any other creative ways to structure it.

1) I close with the seller and wait 90 days to season the title for the end buyers FHA loan.

2) I sell the contract, however, this will expose my spread and am afraid the end buyer and/or seller will want to cut me out and deal direct.

The county has the house appraised at $300,000. The existing loan which I will be taking over is $133,000 plus the $3,000 to the seller. I will be selling it at $170,000.

So how can I handle the 90 day title seasoning challenge? What other options are there?

Thank you in advance!

[Bruce Lynn]

You can contract with him today with closing 90 days out, with a buyer's temporary lease for the 90 days.   Make sure his lender is good with that and if they have any other restrictions like two appraisals.   Is buyer doing 203K rehab.   Make sure you have an experienced board certified real estate attorney look at it all and also get blessed by your title company....and close both sides at title with title insurance.