Subject-To, Contract for deed, etc.

2 Replies

I'm looking to purchase a property. Numbers look good for cash flow for rental, but I want to explore less conventional financing options. 

The property was purchased for $130k in Sept. of 2013. It was listed for $150k last February, and is down to $115k now. Assuming 20% down, the amortization schedule shows around $101k still owed.

I'm looking for resources to learn more about doing 1) seller financing, 2) a subject-to deal, or 3) another option where I have a reduced down payment.

Everything I'm reading says seller pays 10-13% during a sale, and I'm wondering if I can get them to accept one of these options to save them money, and get me the property for less out of pocket, less total cost, or preferably both.

If it was purchased for $130, what was the down payment, and the payoff?

Seller financing, sub2, wrap, lease option assignment, it helps to know the pay off, or will they sell for the mortgage balance.

Motivated Seller Questions - Tape this to the wall.

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Asking About The Seller And Their Property:

  • Can you tell me a little bit about your home?(# of bedrooms, baths, size etc.)
  • What do you like most about the home?
  • What do you like the least?
  • Are there any repairs needed?
  • What is your sales price and how did you arrive at it?
  • What do you think your house would appraise for in excellent condition?
  • What do you think your property could rent for?
  • Is your property listed with a real estate agent?
  • If you don’t mind me asking, why are you selling?
  • Asking About The Existing Financing:
  • Do you own the house free and clear?
  • Do you know if your mortgage loan assumable?
  • Would you sell the house for what you owe?
  • If not, how much are you looking to get above what you owe? (Subtract that from sales price to
  • get loan balance.)
  • How much are the monthly payment on the mortgage?
  • Are the payments current?
  • What Kind Of Deal Can You Get:
  • If I paid you all cash and closed quickly, what is the least you could take?
  • (Follow-up by asking if that is truly the least they would take.)
  • Will you consider leasing the property to me with an option to buy if I guarantee the mortgage payments and maintenance?
  • Do you have a problem with someone living in the property until I get it sold?
  • Would you consider optioning the property to me, if there is absolutely no risk or cost to you?
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    There are videos on these strategies here on my BP blog

    Brian

    Thank you very much for your detailed reply. I will definitely check out your videos. 

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