Question on Subject/to Deal Structure - Posted by Brian M. Powers(MI)

Posted by Rick on August 01, 2001 at 08:39:58:

I’m assuming your exit strategies are to L/O to a tenant/buyer or sell on a Land Contract with a balloon in say, 3-5 years. I don’t see a problem with buying from the seller “subject to”, just make sure whatever you agree to do for your seller (10 years max.), you don’t give your buyer 30 Land Contract terms with no balloon.

Question on Subject/to Deal Structure - Posted by Brian M. Powers(MI)

Posted by Brian M. Powers(MI) on July 30, 2001 at 11:54:20:

I have a seller who is interested in selling his home to me subject-to. All the numbers make sense on my end. He has no problem deeding the prop to me and letting me sell it. His only reservation is he has 21 years left on a 30 yr mortgage and doesn’t want “this thing to go on forever”. Are there any potential problems with me giving him a back door by putting in the agreement that if I can’t get someone to cash him out in say 10 years I’ll deed the prop back to him and I’ll have nothing further to do with it?

Thanks!
BMP

Re: Question on Subject/to Deal Structure - Posted by David Garcia

Posted by David Garcia on January 25, 2002 at 21:34:17:

You can tell your seller that your end buyer will refinance within 2 yrs. So you sell the home through a l/o.