New To Sub 2 Investing...what Contracts/paperwork Do I Bring To Seller?
I think my subject said it all. I have a potential motivated seller and i'm not sure what paperwork to bring to him should he say yes to the deal. I want to pay him some $ up front and then L/O as an exit strategy...input from experience sub2-ers appreciated as quickly as possible...thanks
Most ideally -POA('s), Deed, $.
Sam
Thanks..I'm guessing a POA is a purchase agreement (?)..also, new twist ..seller owns 2 houses next to each other. one is 1238 sq. ft, the other 1441 sq. ft. He's selling them for $140K each. I've peeked in the smaller one, and it's broom clean and move-in ready. From speaking with him the other is in the same condition. FMV on the bigger one is ~$156-160K. He actually says that while he's willing to carry back financing his main goal is to get out from under his existing 1st @ 10.75 %. Is this a good deal to just get new finincing on and hold for a couple months while I find a T/B to L/O to? It's in one of the best if not the best shcool districts in town, the only draw back is that it's on a semi-busy street. whaddaya think?
The problem with taking any house sub-2, or the benifit... is that you are at the mercy of the seller's interest rate. You can take it sub-2, and then refinance later if the money works out enough to put a loan in your name...if you know what I mean.
A POA is power of attorney. You will need a purchase agreement also, guess I thought that was understood. The POA allows you to talk with the bank, and basically do anything that that owner could do.
You should read up on this subject. Also, John $CASH$ Jocke has a great course on this subject-IT IS GREAT.
Sub-2 is a method to purchase, what you do with it after that is up to you.
L/O, sell on CFD (contract for deed), or burn it down to collect the insurance settlement (I wouldn't recomend this route to make money)
Good luck.
Sam