Originally posted by @Donald S. :
Anyone in St. Louis doing subject to deals? If so I'd like to buy you a cup of coffee and discuss it with you. seems like a very interesting and potentially profitable niche.
I do Subject To in various states as Joint Ventures. Any questions I can answer?
I was hoping to find someone in StL to find out specifics for my state laws. And maybe partner to learn the ropes of it, maybe help them somehow until I get my legs under me. I'm a good negotiator just need a roadmap to point the way.
In Any state, I feel it is important to have financial wherewithal to be able to take take responsibility for the past owner who's responsibilities you are taking on. Ask yourself, are you able to take the owner out of the deal if anything goes wrong. For example, if title changes hands the mortgage company calls the note due. If that happens, I think you should have the financial ability to pay off the mortgage. Or, if you rent the house out and the tenant stops paying rent, do you have cash reserves to ensure the mortgage will be paid as agreed? When an owner gives/sells you the deed to their property subject to the existing mortgage being paid by you, make sure you can cover it! I have heard many guru's talk about Subject to, but not the responsibility that it brings to the investor to ensure the past owner is not hurt by the deal! It needs to be a win win!