Subject To
John,
I am a new investor and looking at a property that I would like to try to get subject to. I have read the entire forum here and it has been very informative. One question - If you are using a standard PAR agreement of sale - how do you write it up as a subject to? How do you write in that it is a CFD?
Subject to is not a CFD....you are taking the house, the deed, subject to the existing mortgage.
on my pur. and sales agreement....the line under Total Purchase Price says
"Existing mortgage balance encumbering the property to be taken subject to by Buyer (approximentely) __________"
this transaction is not a contract for deed, so you won't write it up that way. You will be getting a deed right away. Subject to is essentially an agreement where the buyer takes simply takes control of the property.and doesn't bring new financing to the sale. Write it up that you will be taking the property subject to. I'd strongly recommend John's material. There are a few more items that you will need to do this right. All of them are explained in detail in his package.
Jeff
Barth, sub2 is a great way to make a killing... when the numbers are right. I would definetely invest in John's program. He's a stand up guy and he's there to help 24/7 (well, maybe not 24... sorry John).
It's also good to have reserve cash set aside should the need arise for you to make some payments in the event you cannot get a new buyer before the next payment is due. There is risk involved, but when you get a sweet deal with little initial equity... bada-bing.
I'm not too far away from you, so let me know how you make out. Always pulling for the local peeps.
barth5,
Buy = Subject To the existing mortage staying in place. Deed goe in your name or corporate entities name.
Sell = Contract for Deed. When your seller fullfils the terms of your contract they get the deed.
The paperwork for buying and selling are two different sets of paperwork. There is more to it than what I have shown above, however there is a separation as you can see.
John $Cash$ Locke