"Subject to" deal for a property listed on MLS

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"Subject to" deal for a property listed on MLS

Yuriy Skripnichenko
Property Manager · Phialdelphia, PA · Member since 2017 · 509 posts · 627 votes

Hi everyone.

I was wandering if anyone has done “subject to existing mortgage” deal for a property listed with an agent?

I have a property that is listed on MLS and I'm interested in. However, the deal makes much more sense if I'd be able to get it subject to. The seller has property mismanaged and previous tenants damage it. Plus the seller has mortgage on the property and jugging by the asking price they just want to get rid of it and not even try to make any money.

In my previous experience with agents, they just do not get it. And one of the brokers told me that it is not legal…

How would you approach the listing agent with this type of the offer?

Thanks for any input. 

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Cameron Novak
Corona, CA · Member since 2017 · 99 posts · 42 votes
8y
Hi Yuriy, I'm a real estate broker and I simply tell the listing agent I'm buying the property for myself and would like to present my offer directly to the seller. If they don't have activity on it, they will likely be receptive to it. Good luck.
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  • Account Closed
    Riverside, CA · Member since 2017 · 412 posts · 296 votes
    8y
    Originally posted by @Yuriy Skripnichenko:

    Hi everyone.

    I was wandering if anyone has done “subject to existing mortgage” deal for a property listed with an agent?

    I have a property that is listed on MLS and I'm interested in. However, the deal makes much more sense if I'd be able to get it subject to. The seller has property mismanaged and previous tenants damage it. Plus the seller has mortgage on the property and jugging by the asking price they just want to get rid of it and not even try to make any money.

    In my previous experience with agents, they just do not get it. And one of the brokers told me that it is not legal…

    How would you approach the listing agent with this type of the offer?

    Thanks for any input. 

    I only do Subject To and Wraps. In a situation like that, I write up an offer on the locally acceptable agreement (MLS agreement) and mail directly to the owner. Since I represent myself, I offer 3% commission to the listing agent and explain why in a cover letter. I let the seller decide. Sometimes I get a call from the listing agent wanting to discuss the offer and sometimes I'm ignored. It's the seller's house. They can choose to accept your offer or ignore you.

    1Reply
  • John Thedford
    Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    8y

    The danger is to the seller. If you default, the bank goes after THEM. Other danger is the DOS clause. If you have the money to back it, go for it.

    1Reply
  • Yuriy Skripnichenko
    OP
    Property Manager · Phialdelphia, PA · Member since 2017 · 509 posts · 627 votes
    8y

    @Account Closed 

    Thank you. The bank goes after them but also forecloses on the property that I'd own. So both the seller and the buyer has skin in the game.  

    0Reply
  • Account Closed
    Riverside, CA · Member since 2017 · 412 posts · 296 votes
    8y
    Originally posted by @Yuriy Skripnichenko:

    @Account Closed,

    Thank you for your input. 

    I'm a licensed agent and I can not go directly to the seller since he has an agent. So I ned to explain it to the agent in a way that he will understand and communicate it to the seller or set up a meeting with the seller. 

    @John Thedford 

    Thank you. The bank goes after them but also forecloses on the property that I'd own. So both the seller and the buyer has skin in the game.  

     Interesting. That is another argument for not becoming an agent. I hadn't thought of that one.

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    8y

    @Account Closed  you can always ask for a appointment to personally present your offer.

    being licensed never stopped me from buying a few hundred sub too's  LOL

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    1Reply
  • Account Closed
    Riverside, CA · Member since 2017 · 412 posts · 296 votes
    8y
    Originally posted by @Jay Hinrichs:

    @Account Closed  you can always ask for a appointment to personally present your offer.

    being licensed never stopped me from buying a few hundred sub too's  LOL

     I think what Yuriy was saying is that he couldn't do that since he is an agent. I *can* do that since I am not an agent. And it is situations like this that convince me that I am better off not being an agent.

    0Reply
  • John Thedford
    Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    8y
    Originally posted by @Account Closed:
    Originally posted by @Jay Hinrichs:

    @Account Closed  you can always ask for a appointment to personally present your offer.

    being licensed never stopped me from buying a few hundred sub too's  LOL

     I think what Yuriy was saying is that he couldn't do that since he is an agent. I *can* do that since I am not an agent. And it is situations like this that convince me that I am better off not being an agent.

     Being an agent has nothing to do with buying subject to.

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    8y

    @Account Closed  my point is an AGENT CAN request an in person meeting to present their contract.. happens all the time..

    WE get them when the agent comes over with a picture book of the buyer there kids their dog .. all the reasons we should take this buyers contract over another.. quite common actually.

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    0Reply
  • Wayne Brooks
    Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    8y
    Most agents “get it”, it’s just typically not in their client’s best interest to take the risk And still have the debt counting against them for future financing.
    1Reply
  • Account Closed
    Riverside, CA · Member since 2017 · 412 posts · 296 votes
    8y
    Originally posted by @John Thedford:
    Originally posted by @Account Closed:
    Originally posted by @Jay Hinrichs:

    @Account Closed  you can always ask for a appointment to personally present your offer.

    being licensed never stopped me from buying a few hundred sub too's  LOL

     I think what Yuriy was saying is that he couldn't do that since he is an agent. I *can* do that since I am not an agent. And it is situations like this that convince me that I am better off not being an agent.

     Being an agent has nothing to do with buying subject to.

     Read the post. It has everything to do who you can present the offer to. It would appear that either he or his broker doesn't allow it *specifically* BECAUSE he is an agent.

    0Reply
  • John Thedford
    Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    8y
    Originally posted by @Account Closed:
    Originally posted by @John Thedford:
    Originally posted by @Account Closed:
    Originally posted by @Jay Hinrichs:

    @Account Closed  you can always ask for a appointment to personally present your offer.

    being licensed never stopped me from buying a few hundred sub too's  LOL

     I think what Yuriy was saying is that he couldn't do that since he is an agent. I *can* do that since I am not an agent. And it is situations like this that convince me that I am better off not being an agent.

     Being an agent has nothing to do with buying subject to.

     Read the post. It has everything to do who you can present the offer to. It would appear that either he or his broker doesn't allow it *specifically* BECAUSE he is an agent.

    Okay so it has nothing to do with being a licensee but rather his specific Brokers policies. 

    1Reply
  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    8y

    "Mr agent you know this property is over priced because of the mortgage. If I show you a way to make this deal hapen and you get paid are you and your client open to creative offers?"

    2Reply
  • Cameron Novak
    Corona, CA · Member since 2017 · 99 posts · 42 votes
    8y
    Hi Yuriy, I'm a real estate broker and I simply tell the listing agent I'm buying the property for myself and would like to present my offer directly to the seller. If they don't have activity on it, they will likely be receptive to it. Good luck.
    2Reply
  • Yuriy Skripnichenko
    OP
    Property Manager · Phialdelphia, PA · Member since 2017 · 509 posts · 627 votes
    8y

    @Account Closed

    There is no broker’s policy in regard on to whom I have to present an offer to.

    The original question was how to present subject to deal to the listing agent. Not every agent would want to get me in front of his/her seller.

    Thank you all for the input. I got an idea how to go about it and will reach out to them tomorrow. 

    1Reply
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