BiggerPockets

First, is 43K the payoff and an additional 11oo to bring it current or is that included in the 43K?

What are yo going to do with it, flip it or keep it? That makes a difference because down the road, you may need financing and a sub-2 shouldn't be going forever.

If you are going to flip it, I'd try to buy it at the payoff and work out a profit with your seller on the next buyer. To do this, you might partner with the seller.

You might do a sub-2, just at a glance, with a sale price no more than 50K, buy the time you work in the second payment it would get very thin.

Can't say it's a bad deal because I don't know your investing strategy, tax considerations and market. My rule of thumb is a good deal doesn't cost me anything to hold and very little to acquire. A better deal cash flows! Good luck, Bill

Sam, I see you are new, welcome....

Why can't you do an option, pay an option price to catch up the payments and what ever you need to to get the seller out and then have a subordinated lease option? But, you can go at it your way too.

BTW, selling your property on an installment for more than it's reasonable market value might now get you in trouble. You said it was worth 65 and selling for 70. Check out the FAST Act forums here on PM and the CFPA Consumer Federal Protection Agency that has been recently formed. Good luck, Bill.

Obviously, you are not an attorney, nor have a law enforcement/compliance background and have not considered the intent of the CFPA and the SAFE Act. What was common in the past is the root cause of many of these laws, regulations and practices being changed.

How is the property to appraise out for the equity to refi? Chances are it won't.

The problem is that there are too many investors out there that have used installment contracts to manipulate transactions so that most buyers could not perform and thereby profiting from such activities.

Doing a deal over the market value with some bull sh** excuse to justify such activity. Sam, you're in the same boat as 90% of investors doing installment deals, who lack the depth of knowledge and understanding of underwriting future performance. IMO. If people are so dang smart on this site, why are they asking questions?

If you're going to simply do a deal the way you want to out of greed and justify your actions or startegy by saying that's how everyone HAS done it, and not listen, why ask a question?

Study the new legal aspects of the business. Without bias toward your opinion of how a deal should be done. If it is not crystal clear, get someone with the capacity to understand the material and explain it to you. Read it letter by letter, it's in english!

Hi Jon,

This is a bit weird, as i wrote a lengthy response about what i was looking for.
Basically just needed a steady hand to guide me through a subject 2 deal, as i have no experience in getting this done. Would have been massively helpful to see this through with all the documentation and costs handled by someone who has done a few. In either way, owner seems to be a bit tentative, so I'm looking at other solutions too. Thanks for all the help.