Updated 2 months ago on . Most recent reply
Unique Trust/Sub To Deal
In the talks of a deal and could use some additional feedback/analysis.
Situation:
In East GA area. 3be/2ba, 1400 sqft townhome that was purchased for 218k in 2023. The seller used the VA Loan for this property, putting 0% down. He wants to start a business in another state, so he wants to get out of the property. I was informed we cannot perform a regular Sub To, so the loophole we found was to place the property in the trust and list me as the beneficiary. All the terms would be on a contract to protect both the seller and buyers rights/agreements. Additionally, I have bought my first property in this same neighborhood using the Va Loan so I know the property is good.
Deal:
He wants 25k directly, meaning it wouldn’t pay down the mortgage. Closing costs are 2.5k for the trust and contract. So total out of my pocket is $27.5k. There is a tenant in there for 8 more months renting for $1750. Tenant placed a $2500 security deposit. The current interest rate I would take over is 3.75% fixed for 30 years. The property is new as it was built in 2023. I’ve done some of my own calculations but since this is unique and the money wouldn’t pay down the mortgage I’m requesting some additional analysis. Any help, input, or advice would be nice. Thanks in advance.