Trying to Figure Out How To Structure My First Deal

[Dylan Tettemer]

Hey BP,

So this is my first deal that I have the possibility of attaining and could use some advice on a good idea of how to structure it! So I originally found a duplex that I was going to use the VA loan for to attain because I didnt have enough for a down payment with a conventional mortgage. However, my agent just found out that the same owner of the duplex is selling another right down the street thats the same style as the one I was originally going to buy. I am currently working on getting the numbers together to analyze everything but wanted to hear everyone's ideas and what they would do if they were me. I appreciate everyone's help!

[Jason D.]

Is the seller willing to finance the deals themselves as a package? That's what I would try to work out

[Randy Rodenhouse]

You need to find out more information like how much they owe on the property and the current loan terms so you could possibly buy it subject to or have the seller finance if house is free and clear or a lot of equity.  The key is finding the true value and trying to buy below market value with good terms and then you could turn around and sell on owner financing or lease option and make the spread. 

[Account Closed]

@Dylan Tettemer I'm guessing the agents on both sides of the transaction are wanting to get paid so take into consideration on how to do that. Usually in a Subject To, you either pay them cash for their fee (6% of sales price) or talk them into taking their fee in a note or something like that. Since they probably have real estate brokers to report to, either broker or either agent can stop the deal. Creative Financing gets complicated if agents are involved, and agents rarely agree to Creative Financing.

Usually you can go the county records or Title company and get the amount paid for the property, when it was bought, the most recent financing, (and sometimes the lender & amount still owing if you use paid services that provide such information), and then you can calculate the amount owing based on the year and amount and assume a 30 year term using an amortization schedule. That is a *ball park* number. Of course you need to know if there are any 2nd position liens or other costs against the property. That gives you an idea if a Subject To is even workable.