Presenting Subject-To Offers

18 Replies

How do you generally present Subject-To offers and get them accepted by the seller?

Hi! I was going to ask this question too. I am finally getting one done, but it is with a family member who already trusts me. I was wondering if it would be pertinent to give a sort of brochure to potential buyers--either in print or electronic form. Something I compile myself along with laws and popular websites that they can go explore on their own for comfort. My biggest worry is the time it may take to actually secure the deal. I suppose it could be used only if the want to sit and think on it, rather than sign right away. I also may post some feeds on my new website so people who visit can have a heads up. Those were my thoughts.

The seller has to be motivated. I'm dealing with a seller right now who still thinks they can do it themselves. The reason why sub-to is better than a lease option is because the house needs at $20,000 to be made rent ready and has a skinny cashflow & equity position. I have to convey to them that if I'm going to take the risk of rehabbing I need title. After all, I'm the buyer therefore I'm the customer in this situation.

@Markeilsha R. That additional information sounds like a great idea. One seller was really concerned about the legality of the strategy. I think that she's going to pass.

@Michael Otranto Motivation is key. The first person I presented the idea to seemed to take it a little better than the second. They're actually both in the same neighborhood and the comps don't support their price as far as the mortgages are concerned.

What is worked well for me in the past is explaining to the seller the Costs to Sell with an agent versus renting versus subject to versus lease-option

those four options generally get their eyes open to what's possible. Then I do a Ben Franklin, draw a line down the middle, on the left put subject to where I'll pay PITI and maintenance for 2 to 5 years if they keep the loan in their name or we can turn the property into a rent to own, and They will get a check for rent but they'll have to pay maintenance and taxes for 2 to 5 yrs.

@Brian Gibbons Thanks for that info. I will try to do that the next time I attempt to use this strategy.

@Brian Gibbons do you have a recommendation for an attorney that is familiar with subject to contracts in Arizona?

Originally posted by @Thai Foo :
@Brian Gibbons do you have a recommendation for an attorney that is familiar with subject to contracts in Arizona?

http://www.eckleylaw.com/contact.asp

Originally posted by @Brian Gibbons :
What is worked well for me in the past is explaining to the seller the Costs to Sell with an agent versus renting versus subject to versus lease-option
those four options generally get their eyes open to what's possible. Then I do a Ben Franklin, draw a line down the middle, on the left put subject to where I'll pay PITI and maintenance for 2 to 5 years if they keep the loan in their name or we can turn the property into a rent to own, and They will get a check for rent but they'll have to pay maintenance and taxes for 2 to 5 yrs.

What? No link? You're slipping! Take her to Sub-2s, not L/Os, every peg is not square.....she's in Texas. LOL

BTW, not all the posts appeared when I posted this..... ??? :)

The big things are they have to be motivated and you have to have built rapport with them. Having a few under the belt or at least some private lenders of have lent to you helped, as it shows a track record. Basically if you can offer them more money by doing a subject to, or can only buy the house this way and they are desperate to sell, they will very much consider it IF they trust you.

@Andrew Syrios Yeah, trust is key. This would be my first one, so I don't have the track record as of yet. I'm working on it.

A great rebuttal if you run into resistance is: "I'll be paying your mortgage for you. That's what you wanted isn't it". Also: "What will you do if you can't sell this house?". Those 2 have worked well for me in the past. Getting the seller to focus on the problem at hand.

Thanks @Michael Otranto that's awesome advice! I'll try that today, actually. I have a follow up that could benefit from the strategy and I like this approach.

K

@briangibbons Great stuff! I use a similar presentation when I meet with sellers. I like how you break it up into columns.

Hi, it appears that that slide show is no longer active.  Any way I can get a hold of it or an equivalent presentation?  Thanks so much!

-Brian

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