Subject to contract

[Belinda Carr]

This will be my 1st time acquiring a property through Subject to. Does anyone have a contract and necessary forms they are willing to share or can you tell me where I to get them? I want to make sure I do it right. Thanks 

[Curt Smith]

Hi All,  Just some comments from my own marketing and hearing from folks like you who have asked for my sub to training (BP needs you to connect first).

- My own and from other folks; I hear of no wave or even a trickle of sub to purchases!!!   :(    Owners just do NOT have enough stress:  under water, extreme deferred maintance,  loose of income and behind on payments.  Some or ALL of these needed ingredients aren't in place.   The market appreciation is saving the stressed owners.  Good for them!  Always root for owners to be ok.  Us investors after all deliver win win solutions where everyone has to win.  Its another book on why a stressed seller benefits from an investor buying as-is taking over the often behind mortgage.

- Today (as always) the most fertile group of sellers for sub to deals are the very VERY difficult deal scenario of pre-foreclosure. IE the owner has received their 4 week Notice Of Default with the auction some day of week in 4 weeks. Believe it or not; 95% of owners who are asked if they would like to sell and put some cash in their pocket who have been given a NOD and auction date say no right up to the auction. They got into their many problems via in-action and that is their MO, 95% say no. Some of the 5% may say yes but... some catch that kills the deal. A very small percent of NOD owners say yes I'll sell and the numbers make sense. Now the problems with this deal scenario that new folks need to say away!!!! Often 2-6 mo of arears; $5k to $25k. The auction is the following Tuesday at 10am and you have only 4 business days to close the title, pay off the bank, AND MUST MOVE OUT THE OWNER!!! The owner must NEVER be allowed to stay in a sub to purchase post closing!!! NEVER. Another book on the problems a owner converted into a renter can cause the investor. The investor may even loose their cash input and the owner sues for fraud and they get the house back, now their arears paid off. The owner has to be moved out the morning of closing!! My friend who focuses on NODs has a moving crew. There's ALOT of crying spouces, kids, tremendous stress moving those sellers out!! Very emotional. Imagine yourself given notice you are loosing your house and on no notice have to move out??

Anyway;;  that some info on where there are assured sub to purchases.  But its VERY difficult.  Just finding a closing attorney who will do title and do a closing on 24hour notice is very very difficult.  This deal scenario takes a specialized team who are experts in closing (and moving out families) who do their tasks in hours not weeks.

Theres a data shortage to better find sellers. What we need is easier access to credit info en mass; Who in some area is 60 days late on their mortgage? 90 days late on their auto loan? Every sub to deal has financial stress at its root reason for the sale. Here's a source that propstream.com has the data on; HOA liens, bankruptsy, divorce. I can tell you there's very few leads in these catagories!! You'll need to cold call and door knock each lead. Forget about post cards. You have to get the person face to face.

Creative deals are negotiated.  NO owner knows of creative scenarios (sub to, seller gives a 2nd note for their equity, seller takes an option to sell...).   Creative deals are negotiated by educated investors.

You can make more money from knowledge vs having ones own cash.  So get educated.  Assocated with experts.  To me this includes being members of your local REIAs.  Find local RE groups and join them all till you sort down to one or 2 local RE groups.   I'm a member of 3 local groups here in Atlanta.   You are the average net worth net knowledge of your network.  :)

Good luck, curt