My first subject to deal - MO

[Nathan Brooks]

Hi all!

I will be going to buy my first subject to (sub2) deal tomorrow ... I have a few contract questions I am trying to figure out.

1. When you write the offer are you writing it with a FSBO sales contract? And if so, what are you writing in as the sales price?

2. When you close, do you contract the lender and ask them to be sending you the mortgage info w/ a third party authorization?

3. What else am I missing? 

I will most likely be holding it as a rental for a few years and then selling. Any other thoughts, experiences, whatever you have ... thanks for your time!

[Dion DePaoli]

Originally posted by @Nathan Brooks:

@Ned Carey There absolutely is a FSBO contract. In KC there are FSBO contracts, supplied by the title companies in our area, which are four pages. And there are contracts the realtors use (KCRAR) and they are like 11 pages.

In Florida, there are FSBO, there are NABOR, and there are FAR contracts ...

It's important to understand the areas of the country with these contracts before making a comment like that.  

I have bought and sold my fair share of real property. This FSBO Contract idea is a bit off base. While the reader can choose to do what they wish but implying that something exists and is also legally and structurally sound and proper just because it was delivered by a title company is not prudent.

In Florida there is no such thing as NABOR (don't even understand what that is supposed to stand for) there is FAR contracts and FAR/BAR contracts.  (Florida Association of Realtors - FAR and FAR/BAR is Realtors and Bar Association).  

Most other states follow similar concepts where the contract terms set forth by either the state's Bar Association or the states Realtor Association.  There is no association of For Sale By Owner, so I am not sure if one should rely on such things.  Sounds like the equivalent of buying a contract at Home Depot - which can also be done and used.

All that said, a Buyer and Seller could write a contract on a napkin and use if they wanted to.  That doesn't mean it's a good idea.  

I would also point out, that contracts with 'less' pages are not necessarily 'better' contracts - you sort of have to wonder why the professionals have 11 pages and the other one doesn't.