Wholetailing Subject to Deal Advice
A seller that's a good friend of mine desires to sell her home for what's owed. She has agreed to sell me the house Sub to for what's owed. The house is 10 years old and in good condition, and I plan on Wholetailing it to a buyer using a VA Loan (military town). Being that VA Loans require 90 days of seasoning, I will have to hold tile for 3 months before selling. The seller's ex husband currently occupies the house but can't afford the mortgage and would like to move ASAP.
My Strategy Is to:
- Purchase Subject to, get on title to start the 90 day seasoning
- Rent the house to the current occupant on a month to month lease less than the current mortgage payment (incentive to stay, be corporative with Sub to, and subsidize holding cost during the mandatory seasoning)
- Begin marketing the house immediately
- Sell to a VA Loan buyer immediately after required seasoning
Both sellers are on title but wife has exclusive discretion for sell of house. Does anyone recommend a better way of executing the deal? Are there flaws with this strategy that you recognize?