Posted by Stewart on October 21, 2003 at 17:17:39:
YOU decide what money comes to the table, it’s your deal. If you want the seller to pay closing costs, make the next few payments or anything else, that is part of the deal. Remember, in the typical house buying event there are often several prorated items, and\or negotiated expenses (help with closing costs for example) and if you are the buyer, maybe you write a check at closing. In a sub2 deal, you dictate what you want in order to take a deal. If little equity, then maybe you ask for “closing costs”, in effect, a payment to give you the profit you need. Also of course, if the escrow account is short you want to make sure they pay for that shortfall and if there is not much equity in the deal, you want them to pay at closing, or take a promissory note or mortage on another property they have (or their parents). Call it closing costs, call it making payments until you get a tenant, call it your profit, whatever you want, as long as the deal is worth it. In short, you probably won’t be doing a normal closing so again, you call the shots. Just make sure you are covered, have all the right documents, have good title, and get your tenant. Onward and upward 