Colorado - subject to vs wrap vs ??

7 Replies

A distressed owner came to me, he wants out of his property fast and he doesn't have the cash to get it retail ready or hold it much longer.

Value approx $85k

Estimated rent at least $800/mo

Mortgage $55k

Knowing what he would walk away with after a traditional retail sale, he may be willing to do a quick deal for the cash with a lower sales price.

My questions are

1. Is there a "best" way to structure the deal out of the options that don't involve a new loan? 

2. Does state or local law affect the answer to question 1?

3. Who would I close a deal like this through? Title? Lawyer? Both?

@Micki M.  there is an attorney with land title named oliver that specializes is these kind of deals. he is teaching a class at smdra on sept fifteenth on that topic his last name starts with f. dang smart phone not so smart today.

I haven't done a sub 2 personally, but I would want to know more about the existing loan. Term, interest rate, etc.  Would you  want to keep it as a rental or sell to a n end buyer? Does it need work? If so, how much?  

@Bill S.  Thanks! I will reach out. 

@Jake Silcott I still need to get those details, the owner's lack of response speed is why retail is not going to be a great option for him. I would keep it as a rental, probably a furnished short term rental. It needs some handyman work to clean up the DIY stuff that has been done, but even conservative monthly rent would cover mortgage and HOA.

@Bill S. I'd like info about the class too. Do you know where I can get more info? Thanks!

@Micki McNie Gotchya. Do you know what the mortgage payment and HOA are? Once you get all the deets you can make a better decision. The interest rate is important. If it's a low fixed rate that's great, but if it's an ARM you will have to be much more cautious. Good luck and please keep us posted.

Join the Largest Real Estate Investing Community

Basic membership is free, forever.