Real Estate Investor · Charleston, SC · Member since 2014 · 8 posts · 1 vote
I have an odd question: I'm currently renting a property in Charleston, SC from some friends who have moved to Washington State (I'm the tenant). Unfortunately, they are going through a rough divorce and need to get this property sold. They asked about me assuming the loan, but I don't know that I qualify. I'd love to use my resources to find them a solution, but I'm new to investing and don't know what options would be appropriate for this situation. If I were not the renter, I would approach it from either a wholesale or perhaps a subject-to deal if there isn't enough equity. Would it be weird/unethical to try and find a buy/hold investor to wholesale it to with me being the built-in renter? Is that a conflict of interest given my relationship to the owners?
It sold in '08 for $159 which is about equal to the current comps. I'm waiting to hear back what kind of equity is in the place, but I doubt it is significant. Any ideas on how to proceed?
Investor · Baltimore, MD · Member since 2012 · 1k+ posts · 655 votes
12y
I don't see the problem with you attempting to wholesale with you living there and knowing the sellers. You'd be doing them a favor by helping them get rid of it. It's completely up to whoever would be buying the house to determine if you still living there would be a confilct of interest. If I were a potential buyer I would just prequalify you before I bought to see if you were a good fit.
Investor · Baltimore, MD · Member since 2012 · 1k+ posts · 655 votes
12y
I don't see the problem with you attempting to wholesale with you living there and knowing the sellers. You'd be doing them a favor by helping them get rid of it. It's completely up to whoever would be buying the house to determine if you still living there would be a confilct of interest. If I were a potential buyer I would just prequalify you before I bought to see if you were a good fit.
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
12y
How about you just buying it subject to? Its not likely the loan is assumable, but that's possible. They would need to read their paperwork. There's risk with subject to, of course, but if you can get into a position to refinance if needed it might be a way to acquire a property.
How about you just buying it subject to? Its not likely the loan is assumable, but that's possible. They would need to read their paperwork. There's risk with subject to, of course, but if you can get into a position to refinance if needed it might be a way to acquire a property.
Forgive me if this is a dumb question... if I were to buy it subject to, when I'm ready to move out, is there a problem with me renting it to someone else or would I have to refinance first?
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
12y
No, there would be no particular problem with renting the property. The risks, which I think are significant in any subject to deal, don't change if you move out. Be sure the sellers are made well aware of those risks. Lots and lots of posts on subject to, so use the search function to read up on this if you're not familiar with these deals.
Investor · Albuquerque, NM · Member since 2014 · 31 posts · 8 votes
12y
@Sam I am just learning about Subject To. There are some great posts. Start by checking out podcast #2 and podcast #70. I did a search on "Subject To" yesterday and ended up with several hundred pages of posts. Lots of great information.