Possible Subject To Deal

[Stephen Dillard]

I know there is a lot of info on here regarding "subject to" investing. I found a great contract provided by Michael Quarles

http://yellowletters.com/assets/purchase_and_sales_agreement.docx

My question is this. Could you or would you attempt a subject to transaction on a property that is valued at what is left on their mortgage?

The property is a 4 unit. 4 2 bedroom apts. Not currently vacant. Not needing any work, completely ready to rent.

The owners are not looking to be landlords anymore but they want to sell and walk away with a profit.

The mortgage on the property is at $157,000. They want to sell at $200,000.

Not behind on payments or taxes.

Other 4 units in the area are being sold for around $150,000.

They know the property is not worth $200,000 but they might be willing to take their profit over an agreed period of time. Maybe agree on payments with a balloon payment in 2 years for the difference between the $200,000 and the remaining mortgage amount.

I would agree to pay $200,000 for the property as it would allow me to purchase this multi-unit property with a minimal of investment. It sounds like a deal to me but I would love some feedback from others who have done subject to deals before.

[Wayne Brooks]

Why do you think it's deal, to pay $200k for property worth $150k, even though you may not have to come up with the full $45k or so down payment for 2 years? In two years it's still worth less than you paid for it.