Subject To

[Jason Morgan]

Good morning BP posters, I had a question about doing a subject to. How much are typical closing costs when doing a subject to and is it possible to do a lease option first and put in the lease option the seller has to give me the option of selling the home subject to the current mortgage staying in place? I ask the question because I am mainly focussing on doing lease options but what if the seller doesn't have the cash to fix up the place, minor stuff like painting and carpet and if I have to use my own money to get the lease option rentable, I'd want to get a subject to rather than a lease to have some ownership of in putting money in before I even have a tenant. How I would present this to a seller would be an initial lease with an option to buy. I would then go over with the seller what the needs to be fixed up to get the place rented. If the seller balls on spending the money I could transition to doing a subject to but if most of my cash will be spent on doing renovations I would like to delay the closing because I would need to build up more cash for closing costs. Your thoughts?

[Brian Gibbons]

Well your example as a $200,000 house and they're selling it for 120 which is $.60 on the dollar, if you were 20 grand down, refied it .80 on the dollar

You walking with some money arent you?

Try not to think so much, just go talk to Sellers and see if they'll take terms, because you can go through examples and examples

What  I do is I try to find out what the sellers need and give them a cash offer, an owner financing offer, and a lease to own offer,  and usually they take one of those three most the time not all the time most of the time

Especially if it is an expired listing, where they tried with an agent and couldn't sell traditionally