Subject to questions

[Eric NA]

I have a few questions regarding subject to.

1. Once I have the deed, is the interest paid on the loan deductible for my LLC or is it deductible for the individual who still carries the loan in their name?

2. When does the seller get paid? This probably varies, but lets say you take over the payments and then decide to rent the property out. If the owner had some equity in the house and they wanted some cash out of it, it seems like it would be tough to tell them, "you'll get cash eventually, but i'm just going to rent it out right now" Lease option could provide a little up front cash but if they have 50K in equity and they are willing to give up 25K to get out of the situation, they are still going to want 25K. What would you do here?

3. What ACTUALLY happens in the process. I know they give you the deed, but do they literally hand you a piece of paper and sign it and say it's you're and viola it's done, or do you take it to a title company and have them complete the process?

4. Do you pay the mortgage company directly or do you pay the person who is financing the property and then they pay the mortgage company?

5. What if the house needs a little work, paint, yard work, etc and it's going to cost 2K, how would you handle that? do you just eat the money out of pocket and make up for it with positive cash flow, or do you get the owner to split cost with you? I'm sure there's many option here.

6. Does doing a subject 2 basically boil down to A) Finding someone motivated to get out from under their mortagage B) convincing them to trust you enough to give you the deed to their home. C) Getting a good price. Is that basically the jist or do you need another key?

7. Lets say one day the person who takes over the deed can no longer make the payment. Then what happens? I assume the home owner could go into default for not making the payment anymore and could have to file for bankruptecy, but what happens to the person who has the deed?

8. So lets say someone agrees and they are happy to let you take the deed and keep the mortgage in their name. Wouldn't that make it darn near impossible for them to get ANOTHER mortgage if they are moving to another state or buying another home? Especially now they are goign to check and see what you make vs what you are wanting to buy so it seems like them keeping the mortgage in their name makes it impossible to get another mortage.

Thank you for your time in advance.