Specific Subject To Questions

[Ivorie Walker]

Hi! I’ve been diving into creative financing, reading all the books/posts, listening to all the podcasts, and watching all the videos. But I have specific questions about the steps that I can’t find the answers to. Hoping to get some help here:

1. Is the paperwork needed from the seller the purchase contract plus addendum/disclosures, authorization to release information form, limited power of attorney, and promissory note? Anything else?

2. What specific information do I need to get to do my due diligence after I have the Authorization to Release Info and Limited POA forms? Just mortgage balance, interest rate, and switching the insurance?

3. How long does it usually take to close one of these deals? Do both the seller and buyer need to be there? How does it work if I’m acquiring a property out of state? 

4. I feel like this is a dumb question but is it recommended to get an inspection? Do you also get home warranty? Termite inspection?

5. Age old question of to get an LLC or not. Is there anything special about subject to and seller financing that would make you lean one way or another as far as purchasing under an LLC? I've also seen people recommending trusts. Thoughts on this?

6. For subject to, do I simply switch the bank account from which the funds are drawn? For seller financing, what form of payment are you typically using to pay the seller? 

7. What happens once the seller is paid off? Does this get recorded? 

Thanks in advance. I’m really trying to nail down the details of this strategy and hope this thread helps someone else as well.