Updated 11 months ago on . Most recent reply
Pro Tip on Subject To - Subto
Ken M.Poster
#5 All Forums Contributor
#5 All Forums Contributor
- Investor
- Zero Down Specialist
If you are considering buying using Subject To - Subto, it's important to know what your exit strategy is.
Talk to a mortgage broker (not a bank) and ask if that is a property you will be able to get financing on in the event you have to refinance quickly, because the Due On Sale clause was called.
And
Talk to a real estate agent about how much you would have to bring to closing in the event you had to sell quickly. Generally, it's 8% to 10% of the sales price to sell a property. For a $300,000 property it could be $30,000.
Then, do you have that much cash or credit available to you, in the event of a Due on Sale call?