SUB-2 DEAL
Working on a deal where there is no equity in the property
What should i do with it once have deed in my name
As well looking to have the seller pay me 100.00 to take over this property
What are the thoughts as far as this property /deal and getting the seller to pay me /buyer the 100.00 to take over te property
As well what do do with the property once have it
Why do you want this property?
[addsig]
Why would i want this property
Well first off because i can get it under a sub-2 deal as well the area it is in has the very real possible in the next few months to start turnning around
There is a lot of new business comming in to town with new jobs not tied to farmming or the goverment
So it would if i were to get it would be able to be rented /leased out fast i am thinking
But as i said iam looking for what would be the best to do with it after i first get it ?
As well would it be wrong to have the seller pay me 100.00 to take over this property ?
Would you think the seller would pay the 100.00 ?
Sounds like you are dealing with a “motivated buyerâ€â€¦yourself.
I am not that desperate to put a hundred dollars in my pocket, when it might cost me thousands in holding costs. Of course you know how your market is better than me, so it might only cost hundreds.
Sub To deals can still be done today, only with a lot more market study and property selection. I hope you have seen and completely understand the underlying mortgage on this property and are sure of your property values.
John (LV)
We need numbers to evaluate this deal.
What are the holding costs? Are you going to rent the property out, or flip it?
Either way what are your improvements to the home?
OKAY
Thanks for all the responses on this
I am looking to more then likely get the property refi as soon as i can is my thought at this point
As no one has really ytold me any ideas as to what i should do or could do for sure on this
How long am i going to have to waite before i could refi this property it is in Oregon ?
And no one has addressed the question of is it against the law to have the seller pay me the 100.00 to take the property off there hands ?
As well do you think a seller in this kind of a spot would pay the money ?
Your profile says you are a Real Estate Broker so:
1. You should be asking the lenders you send your buyers to how long it will take to refi since they are local and can give you an immediate answer.
2. Since you are a Broker, you would know better than anyone if it is legal or not to accept this one hundred dollars based upon your state’s RE course requirements of real estate law.
3. What does your market say on your holding times to be able to turn over this property? How much will it take out of pocket in your market? Are you going to buy and hold or quick resell?
4. What is your market doing? Still declining like the rest or are you on an upswing?
5. How far underwater is the house?
6. How much are you going to have to pay for repairs?
And finally if this measly amount of one hundred dollars is making or breaking this deal, then pass because I don’t think you are ready to do this.
John (LV)
THANK YOU
For your post but you need to understand this deal has nothing to do with me holding a brokers lic.
Iam asking the questions as a investor
They are not the same but one can use the other
As well no the 100 is not a make or break thing with the deal
The local people for me and where this property are are two far apart places
iam in Washington state and it is in Oregon
But thank you for your words and all they said
Quote:
On 2009-11-28 11:53, northwest01 wrote:
...under a sub-2 deal as well the area it is in has the very real possible in the next few months to start turning around
I think it is VERY optimistic to think that any 1-5 unit is going to improve in the next couple of months.
Rather than subject to, is the lender willing to sell the note at a discount or the FMV of the property? That way the owner could deed in lieu the property to you as the new loan holder.
Banks do have Combined loan to value (CLTV) guide lines...
Confirm w/ the bank.
I am banging my head to sell this because of several reasons: ....sorry tony, but you are losing your mind.
You need sell out. Your statements and beliefs make no sense.
tony17112acst, I am trying to figure out which one of the above facts caused your appraisal to come in at $775,000? I do not see the correlation. The Euro is a mess, by the way. And there is a major oil spill in the Gulf.
Sorry tony711acst, I meant crazy with regard to overthinking / overanalyzing macro economic factors which dont affect your property. Many of the things you listed are political positions and statements that affect you in a minor way.
Your statement regarding printing money and inflation are false...simply because it hasnt happened. True the USA has printed money ..BUT the dollar stayed strong, thus it didnt cause inflation or have any affect.
Capitol gains? VAT? talk maybe true, but they have to pass it first, you are speculating on future congressional actions which may never happen, and if it did, it would affect your bottom line very little.
Rental vacancy increasing? Depends primarily on your real estate location. I havent seen a vacancy increase in my area, in fact, i get 30% more rent than i did in 2006. In addition, the increase of lending standards has forced more people in the rental market.
Lastly, if you have $500,000 in equity, why are you playing around with $50,000. In reality, you dont have $500,000 in equity, you have $450,000 based on the appraisal. If you know this apprasial is incorrect, and the buyer would pay $820,000 then put your money down and cough up $1500 for a new one. Otherwise you should sell at the appraised value.
you have something a lot of sellers dont have, a qualified buyer, dont let it slip away.
Finni...
How did things work out?
my error, Tony
Thanks for the reply
I would talk to and atty or CPA very familiar with RE.
Parents move the house into an entity which can be divided (Corp. or LLC)
Each year they transfer stock from the entity to the kids in an amount less than what would trigger the gift tax.
Eventually the kids own all the stock. They can then transfer house to their name personally if they wish.
Why do they want to do this?
Commercial King,
Please make an article about this so it will get into the newsletter.
It is not only an interesting idea, but similar to how I have seen micro loan websites pop up to spread out the investing base to help others overseas into encouraging the entrepreneurial spirit.
Here is the link:
http://www.propbot.com/modules.php?name=Submit_Article
Any success with this yet?
look at the various state and federal exceptions to the rule, e.g. internet offering, (I for got the title of this), but having and entity of 1 accredited investor and 35 unaccred. etc.
Commercial King,
Are you seeing any success with these blind pools to pick up investment portfolios?
Yes please create an article when you can. I am interested in finding out what is considered a pool vs a non-pool.