Subject To / Seller Finance

[Sandeep Kongara]

Hi all, 

I have a fourplex in Lafayette that I am planning to sell. I moved out of Colorado. One strategy is to sell on the market, second is to do Subject to/ seller Finance. 

Haven't done Subto / seller finance but my investor friend/property manager says that is the best way to make some money as interest rates are high and can get few investors to compete.  I am a little wary of keeping the loan in my name and giving the ownership of the house to someone else. Has anyone done this and seen any legal issues down the lane that I can be in trouble for?

Thanks,

Sandeep Kongara

[Randy Rodenhouse]

You would only want to do subject to when you're buying houses, not selling.  When you're selling your own house or your own investment property selling with owner finance or seller finance is a good idea. I do this all the time and you can get typically a higher price, fast sell and a good down payment and not have to worry about having to be a landlord and no tenant liabilities.   So essentially you will be selling the property on a "Wrap" (mortgage state) or an "All Inclusive Trust Deed" (Deed of Trust states) depending on the state you live in. I am not sure where Lafayette is?