How to propose a subject to deal?

Question

Hi everyone!

I am interested in proposing a subject to deal to an absent landlord who is listing through a Realtor. Does anyone have any advice on the best way to go about doing this? I am nervous that too complex a proposal will be immediately rejected. I also am not that familiar with the process myself, since I have only read about it and never taken part in one. Are there any other resources other than BP where I can get a good overview and advice?

Graham

Ned Carey · Answer

The best line I've heard for subject to is "If I took over your payments until I could find a buyer does that work for you?"  However this isn't likely to work with a listed property.

Perhaps a variation like "If I took over your payments until I get the property refinanced does that work for you?"

Graham Mink · Answer

Thanks for the good advice!

If anyone else has any resources to learn more about how to complete a sub2 deal could you let me know?

Thank you!

Account Closed · Answer

Offer the seller $1000 upfront to let you do a subject 2 and put into the agreement that you are the one that will be buying, and you will not be selling the subject 2  and the chances the realtor will advise the seller to do it.

Joe Gore

Dan Walters · Answer

@Ned- That's a good direct approach.  I like it.

@Graham: Try to find out from the agent why they are selling (relocation, job loss, upgrading, downsizing), what's their intent after they sell.  If you can get that conversation going you may be able to get the agent to reveal their real need to sell.

You will have a difficult time in getting the realtor to have their sellers agree to this type of transaction due to the risk it poses to their client's credit and the due on sale.  If your dealing with an agent that has been around for sometime and has experience, you may have better luck.  I have yet to complete a sub2 when an agent is involved.  I almost had one where the selling agent and seller agreed in writing and her broker killed it.  Refused to do it.

Max Garcia Jr · Answer

Bump, for a topic I need to learn about as well.

Wayne Brooks · Answer

Ask of they are open to it.  If so, what is mortgage balance, price, and how much cash do yo have to put in the deal.  Expect most sellers, particularly with the advice of a realtor, to say no.

How to propose a subject to deal?

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