Need help structuring subject-to deal! (long) - Posted by Carey_PA
Posted by Carey_PA on February 26, 2001 at 20:03:28:
First of all, I’d like to ask anyone that is able and willing to walk me through this via telephone to send me a private email with your number and the best time to reach you, I will obviously use my dime!
Here are the details:
House is 23yrs. old.
4bd, 2ba. in a very nice neighborhood.
House is in great shape!
Comps come in around $148k (from my research on the web, I just contacted my realtor and asked him to run some comps for me too)
This couple moved to Florida for work and because they like the weather better. They don’t really want to make 2 mortgage payments anymore. BTW, they did a search on-line for “we buy houses” and that’s how they found my name and email address. (THANK YOU STEVE COOK)
They had the home listed by a realtor for $135k (They bought the place in '94 for $138,975)
They had an offer for $125k within 3 days of the listing which they did ACCEPT. However, there was a test done on the septic system and the test showed the system was marginal and they should replace the system. The listing realtor wanted them to replace the system, but they didn’t want to, so they offered to pay 50% of the cost to the buyer. In the end, the buyer walked and they are left with their house.
Mortgage Balance: approx. $110k
Mort. Type: 30 yr. fixed conventional (around 8 or 9%)
Mort. Payment: $1,390/ monthly
Taxes: ?? still waiting for info.
First I made sure that she understood that I would NOT be living in the home. She assured me that she understood that and she knows that I’m going to buy it and then resell it for a profit So, I asked her what are you looking to get out of the house? She told me that she knows the price that she listed with the realtor and the price that they accepted were too much for me because I buy to resell and make a profit, so they really just DEFINITELY need to have those mortgage payments taken care of. She also agreed to possible barter, slightly, and build me a website. (that’s what her and her husband do for a living.
Anyway, I’ve never done a subject-to deal before and hopefully they will accept it, but I need to know how to structure it first. The wife and her mother are on the deed. I’d like to make an offer ASAP and hopefully get the wife and mother to deed me the place by wednesday, because the wife is leaving for Florida on Thursday morning.
Please help, thanks,