All Forum Posts by: Matthew J. T.

How do you exactly go about when evaluating a deal on a fourplex? I understand CAP rate, but how do I know how to determine what the ARV is? They are kind of tricky because they are residential/multi units, so finding comps would be somewhat difficult, do I just base my offer on a good cap rate?

Good answer Celine. I plan on using an Option contract, on the property, it has not been listed, and is a higher end house, so let me say, I do plan on closing with the seller, via transactional funding/double closing the same day I flip to a retail buyer. There is a lot to be made on this deal, and I just want to make sure I have everything down before I start marketing it. I am willing to pay the realtor fees myself, that way I don't constantly have to be showing the property, I'd rather pay somebody else to market it for me, that once a buyer is found, I go to closing with flash funding, than I plan on flipping it to my end retail buyer the same day. I will let the seller know I am personally closing with them, and my intentions are to flip the property, since they know I am an investor, I don't think they care, since they are going through a tough time.

If I have a property under contract, is it ok for me to sell to retail buyers and hire a realtor to market the property for me since I have equitable interest in the property? Than when I find my buyer, just basically double close on a-b, and than flip it to my retail b-c. Can this be done, if I don't hold title but equitable interest?

Thought I would revive this thread, again. When you have a house under contract, since you are the principal of the transaction, can you go to a realtor , and pay them to list it and market the property for you? I don't see anything wrong with that, but I thought I would see how other people would view this? Since you are in fact hiring somebody to "market" for you, technically, since you have principal interest, they should be able to do that for you? Or do you have to have the house in your name in order to have a realtor list it on the mls and show the property to propsective buyers?

Nick, I have a perfect opportunity for one of these deals. I am very lost on it though, some people say it's very easy like you just use a purchase and sale agreement, other articles I've read, tell you to put all these clauses in the contract and extra stuff, and I've read other people to stay away from these kind of deals. I have no idea who to follow, but since you seem to know what you are doing, I'd appreciate any help you'd be willing to offer so I can get this deal done instead of letting go. I understand the whole concept, but I don't know what wording, or where to put the deal is subject to since I've never done one before, thanks and hope you can help.

What wording needs to be in the contract to make it a subject to deal, is there any particular clauses? Or do I just use a standard purchase and sale agreement and add "subject to " somewhere in there? I'm not familiar with this type of deal, and can't seem to find answers anywhere.

I was looking for help on this subject to situation I am in. From some what I read is I just use a purchase and sale agreement, and it is not that complicated, and is fairly easy to use. While others they say the opposite, and that you should put all this information in it. I am confused, and I just want a right answer. I need help working my first subject to deal and I don't know exactly what wording I use, or what to do to make it exactly a subject to existing financing contract. If anybody out there can help without making it more confusing that I am already, I would greatly appreciate it.

Matt

I am trying to get a subject to wholesale deal done yes. However I have a few questions, from my understanding you just use a purchase and sale agreement, and from what I've read is it is very simple. However, is there any special clauses, I have to put in my contract, and also where do I put that the house will be getting purchased subject to? Is there anybody that can help ? I've been reading a lot of articles, but still a little confused, on the wording necessary and where exactly to put it to make sense.

Ok so I am not trying to do the whole mortgage assumption, basically put it under contract to take over payments. Is subject to wholesale and mortgage assignment the same thing ?

Well, in that case what's the difference bewteen mortgage assumption and subject to? And how would it work for a wholesaler?