All Forum Posts by: Doug Pretorius

Yes no problem paying off her mortgage at any time with cash or a refi since the house will be in your name. 

As long as she has a fixed mortgage then yes the terms would remain unchanged. The mortgage would stay in her name, but you're making an agreement with her to take over responsibility for the payments.

@Connor Williams Have her deed the house to you and you make the payments on her existing mortgage. It's called a "subject to" purchase.

@Nick Barberio You would have to explain the situation to the seller's lender. They may require the buyer to sign an affidavit of responsibility to the payments. The seller should also use a different lender to reduce the chance of their old lender calling the loan due.

Another option is to use a contract for deed. The income from them is typically credited 100% to the seller's income.

@Ruben A Ventocilla Rent to own is a cash flow play for a seller in your position. You're potentially giving up some of the appreciation in exchange for an above market rent and a better quality tenant. I say potentially because they may not exercise the option in which case you get the best of both worlds.

In a typical RTO you would charge 5-10% of the purchase price upfront as non-refundable option consideration. Plus 10-25% above market rent. Plus 3-5% annual appreciation.

But it's all negotiable. The price doesn't have to be fixed either. It can be a formula. For example I've seen options written so that the purchase price is the appraised value at the time of exercise, or the appraised value minus 10% so the buyer can build equity. I've personally bought on an option where my purchase price was set to be the mortgage balance at the time of exercise so that I benefited from principal reduction.

@Michael Leeson I still see a few agents doing variations of Craig Proctor's "I'll buy it if it doesn't sell" system although they usually stack so many stipulations into the purchase side that it's obvious it's just a sales gimmick and they don't really have any interest in buying the property.

Back when I started investing I met one listing agent who bought his own listings sub2 if they didn't sell. His fellow agents bad mouthed him and there's obvious ethical issues, how DO you prove that you did everything you could to sell the listing when your back up offer is to buy it? But his clients seemed pretty happy with his performance. If I remember right he was doing around 100 listings a year and bought about 20 of them.

@Mark Shay This is funny, there's a Blue Mountain Resort about 2 hours from me here in Ontario too. Prices are a 'little' different though. A 1 bedroom condo with no land is about $800k!

@Andrew Broxterman Google is your friend!

Here's the Ohio State Bar Association's Real Estate Purchase Contract. It should work just fine, even includes "assignees" under the binding portion:
https://pwc.ohio.gov/Portals/0...

Although not Ohio-specific this assignment contract should do the trick:
https://judicialtitle.com/pdf/...

And no these contracts do not need to be modified on a deal-by-deal basis. If you have some special terms you would normally use an addendum rather than modifying the standard contract.

@Antonio Washington Am I reading this data right, the average home price in Milwaukee is $181k and you've got a $2.8m condo? Damn my dude!

In my experience properties that far above the average are almost the exclusive domain of just a couple of realtors in the area who work corporate executive relocations. You will definitely need a very professional photographer to take some truly stunning pictures along with a videographer for a compelling tour video. You could contact local members-only sports clubs (eg. golf) to see if they have a newsletter you can advertise in as well. But these types of properties tend to only be sold by word-of-mouth or MLS.

@Account Closed Here's another popular one for you: "What list did you mail?"