Posted by Gerald-DC on July 29, 2002 at 22:52:05:
I cannot recommend that you take over the deed without you providing additional information. What is your exit plan? As a practical matter, getting the deed requires some knowledge and study which you apparently don’t have.
Let’s cut to the chase. You don’t want to make their problem your problem. If you get the deed, what are you going to do with the property? Can you drive back and forth 2 hours each way until you find a tenant? Do you have the cash to make payments?
I asked you a bunch of questions in my previous post which you didn’t answer. Believe me, better to honestly answer these questions now than to get in over your head.
Not trying to bust your chops, but getting the deed has certain risks that you should seriously consider. Many of the seasoned investors here on CREONLINE strongly caution against newbies taking property subject to the existing mortgage. I concur.
If you want to get the deed or do a lease option, you simply must do a lot of due dilligence and research. You clearly need a course and the requisite forms. As a another poster noted, Bronchick’s Alternative RE Financing is an excellent course. The ABC’s of Subject To is another good by Randi and Charlie France.
I think you should study the ins and outs of subject to deals and lease options for months before you touch one. When I first started, I was so egar to do a lease option that I omitted several important factors when I inked my first l/o contract. Big mistake. My lease option deal quickly turned into a four month rehab project and for all the time and aggrevation I made about 7K. I’m blessed that I made anything at all but still the point is don’t take this on if you are not ready and based upon your comments, I do not think you are ready. (But I think you are on the right track).
I stand by my original recommendation for you which is to birddog this deal, make a quick grand and learn from the person who you birddog it to. Also get a good course, educate yourself.
If you are determined to get the deed or do a lease option and don’t want to spend money to get a course, then search the archives for “subject to” or “lease options” You may also want to find a mentor who may be willing to take you by the hand in exchange for some the profits.
Again, don’t make the seller’s problem, your problem. Even if you get the deed, if you haven’t done your due dilligence and you don’t have the financial resources to repair and hold this property, you will be going to a seminar. (Ron LeGrand also has decent materials on the subject) but I personally like Bronchick for subject to.
Remember "to the swiftist does not always go the race."
In your case I take this to mean that although you are hyped up and ready to charge, slow down, step back, assess your ability to do this deal and honestly answer if you can handle it.