Conditions Precedent: The obligation of the Purchaser to purchase the Property will be subject to satisfaction or written waiver by the Purchaser of the following conditions within 60 days after execution and delivery of the Agreement.Review and approval of the documentation concerning the property;Completion of satisfactory physical and environmental inspections of the Property; including suite inspections.Completion of satisfactory due diligence search and examinations;Satisfactory review of the title of the Property;Satisfactory first mortgage financing being arranged for the purchase of the Property;Satisfactory second mortgage being provided by the Vendor for the purchase of the Property;7.

Seller is moving and need to sell:Residential - Single Family3/2/2 Ch/a - Good Condition1444 Sq FtAppraised for $79,000Bought for $75,900 2 years ago.Owes $73,000I want to purchase his home "Subject To" his existing financing.Option 1 - Deed the property over to me and I will assume payments on the home & rent it out for cash flow.Option 2 - I Assume his payments & rent it out for cash flow.What would you suggest that I do?

I've been reading the forum, and reading up on the subject for the past many months, so I know enough to be *dangerous*...Here are the details.

Here is one that doesn't happen every day but will if you look at enough real estate.In 2004 I purchased a home "subject to" with a loan balance of $179,000.

Thinking about this subject more...if you are sending an offer with around 30% below fmv, what if the repair cost (which you haven't assessed yet) are more substantial than you what you offered?

I think it'd qualify under "networking".Back to the subject, those were definetly funny phone calls.

Example: “subject to inspection report acceptable to buyer” or “subject to favorable inspection” etc. 8)

If you are concerned about what may be wrong then you should put a clause in that says it is subject to inspection.

The subject property is not on the market.

And the only way to figure it out is to get data, data, data.Perhaps we can all agree that having a simple to use rule of thumb like the "50% Rule" is great to do a first-pass approximately of a deal, but that nothing replacing a full due diligence and financial analysis before actually purchasing.As for Bryan's other point about analyzing discounted cash flow (what some people refer to as net present value or NPV analysis), this is something that is tremendously important if you're going to be investing on a larger scale, and it's sad that more investors (in my experience) don't have any clue about NPV and its implications.I think I'll write a BP blog post on the subject, but suffice it to say, anyone reading this thread that doesn't understand NPV should do some research on the subject...