Posted by Chris Abrams on February 12, 2002 at 10:37:44:
Rick,
I’m a fellow investor doing my first “Subject To” deal (or at least trying to do it). I agree will your FULL DISCLOSURE approach. The truth will set you free!
Appreciate if I could get a copy of your disclosure wording. Be happy to compensate you for same.
Please feel free to contact me at 410-539-4806 to discuss.
Sincerely Yours,
Chris (A-BEE) Abrams
Glory Properties
Help With Subject To Deals - Posted by Michael
Posted by Michael on February 25, 2001 at 20:30:04:
When doing a “subject to” deal what would I write in the addedum to explain I want to take over the mortgage subject to using a purchase and sale agreement?
Should all subject to deals be put into a land trust?
Last question, what due diligence must be done when doing a deal subject to?
Thanks for all your insight,
Michael, KY.
“Subject-To” Deal… - Posted by Rick Wheat
Posted by Rick Wheat on February 26, 2001 at 06:47:53:
Mike:
This is all I’ve done for the past three years, and I’ve gotten pretty good at the documentation. My position is that you provide a “FULL DISCLOSURE” of exactly what you intend to do - namely, take over the “responsibility” of the mortgage payments and balance remaining, but NOT the “LIABILITY” of it. In other words, you are taking over the payments of the loan, but it legally remains in the name of the seller until you pay it off.
I have had experience in the past of sellers getting “convenient amnesia” about what was “SAID”. I started covering all our agreements in my “CYA” letter, plus I have an addendum to the P & S Agreement that I have them read and initial. It spells out everything, including what might happen if I somehow can’t make the payment.
Trust me, it’s better to have it all spelled out in writing and signed off on, rather than have an attorney start asking, “Why did you take advantage of these poor people that didn’t understand what you were doing?”
FULL DISCLOSURE! The best way. If it costs you a deal because the sellers weren’t comfortable with it, it’s better to learn now instead of later.
GOOD LUCK!!!
Rick Wheat
rick@rwcproperties.com
Re: Help With Subject To Deals - Posted by Mike
Posted by Mike on February 25, 2001 at 20:33:53:
What exactly is the procedure for a “subject to” deals? What is the money earning method?
Thanks
Mike