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Creative Real Estate Financing

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Samuel Choi
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  • Buford, GA
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Subject to creative financing

Samuel Choi
Pro Member
  • Buford, GA
Posted May 9 2023, 19:34

Is an attorney the only place to get a subject to contract if yes what is the fee for this.

Im in GA

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Eliott Elias#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
  • Investor
  • Austin, TX
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Eliott Elias#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
  • Investor
  • Austin, TX
Replied May 10 2023, 03:41

There are title companies that specialize in creative finance transactions. Go with an attorney owned title company.

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Chris Davidson
  • Real Estate Agent
  • Boise, ID
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Chris Davidson
  • Real Estate Agent
  • Boise, ID
Replied May 10 2023, 04:44

@Samuel Choi in Idaho our realtor approved forums have subject too in them. Check with title companies, and also local investors. End of the day though is you need to understand your contract inside and out, and paying an attorney or someone to explain it to you could save you big time, and also help you get a deal when a seller ask a question.

Best of luck!

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Michael Dumler
  • Real Estate Agent
  • Atlanta, GA
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Michael Dumler
  • Real Estate Agent
  • Atlanta, GA
Replied May 10 2023, 06:02

@Samuel Choi, a Georgia licensed real estate agent can provide the form you need. GAR F416 - Loan Assumption Exhibit. 

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Brad Jacobson
  • Realtor
  • Ogden, UT
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Brad Jacobson
  • Realtor
  • Ogden, UT
Replied May 10 2023, 07:23

All the above comments are correct.  Savvy agents and attorney owned title companies are all the right places you should be looking.  I would defiantly recommending finding someone who does the subject to deals often because there are a lot of ways to do it wrong.

Good luck!

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Chris Evans
  • Real Estate Broker
  • Atlanta, GA
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Chris Evans
  • Real Estate Broker
  • Atlanta, GA
Replied May 10 2023, 11:25

GA is going to recognize the contract that the parties sign without regard to where it comes from. With that said there are good contracts and bad contracts. A clearly written and defined the terms of the contract will be less likely to end up debated in a courtroom, so the two best options will either be a GAR (Georgia Association of Realtors®) contract or one drafted by an attorney who specializes in the area of RE contract law you are endeavoring in. 

Any Georgia REALTOR® or real estate agent who licenses the GAR forms will have access to the full database of forms, which may be modified through stipulations to meet your exact needs. 

My .02 is to avoid the RE Forms contracts that are available in our state. They offer more ambiguity which can lead to more problems that are easily avoided. 

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Samuel Choi
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  • Buford, GA
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Samuel Choi
Pro Member
  • Buford, GA
Replied May 10 2023, 16:04

Thanks you

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Samuel Choi
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Samuel Choi
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  • Buford, GA
Replied May 10 2023, 21:06

Thank you

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Bryan Scott
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  • Investor
  • Castle Rock, CO
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Bryan Scott
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  • Investor
  • Castle Rock, CO
Replied May 17 2023, 11:07

Having done a number of sub-to's, contract for deed/ILC's, I will tell you that most licensed agents are not qualified to broker such deals.  If I were doing one myself, I would seek out and use a Real Estate Attorney who knows these deals inside out and backwards.  There are way too many pitfalls to be aware of and avoid in order to not get yourself into trouble.

On pricing, I've paid $1,500 to $3,000 depending on complexity.

Most title companies will not do these deals unless title passes, hence, no ILC's, but so long as title insurance is involved and purchased, most will do a sub-to, because title passes to the buyer.

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Samuel Choi
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  • Buford, GA
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Samuel Choi
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  • Buford, GA
Replied May 17 2023, 19:49

Thank you