Wholesaling a subject to

[Brad W.]

OK, this is my first deal so im a little lost. The owner has agreed to sell the property "subject to" the existing loan ($19k) for $2k. Its a mobile that comps out around 34k and will rent for $600. I would like to wholesale this deal to another investor but im not sure what my best course of action is? Im meeting with her later today to sign the contract which leads me to another question, other than putting (Buyer is purchasing the property "subject to" the existing lien(s) or loan(s) of the approximate amount of $19k) is their any other additional terms that i should put in the contract ?

[Grant Kemp]

when you say "in the contract" which contract do you mean? You're going to have a contract to "buy" and then a contract to "assign" to your end buyer. Basically one contract gets it sub2, the next has the end buyer sign saying they accept all the terms you and the seller agreed on.

I know my contract with the seller also includes disclosures saying that I will be looking for someone else to take over this contract, and that I will be doing so for a profit. It limits liability in the long run. My contracts were all prepared by a local RE lawyer, you should probably look into doing the same.