SubjectTo deal - my first deal
Hi, fam. I'm a newbie investor and found a SubjectTo deal here in Texas. I'm super keen to dive into the deal (it'll be my first investment deal), however, I've never done this before.
Is there anything I need to be aware of in this deal?
Should I use my real estate agent on this deal, even though I found it? It may be worth having him along for the ride to make sure it's a clean deal.
Should I consult with an attorney?
Do I still get an inspection period in SubTo deals?
How much earnest money should I commit to?
If the loan is an FHA loan, am I meant to move into the home?
So many questions lol. Any help is appreciated, cheers.
-AJ
Most Popular Reply
Buy sub-2 and then what?
Many sellers, desperate to get out of the house/loan, will thank you today. But in 3-5 years, after you make on-time payments and their credit is improved because of it, they will want to buy another house. The loan on the one they sold you will still show up and underwriters won't let them with the DTI ratios. Now they will try to pressure you into refinancing by messing with your relationship with their lender.
If none of that happens, but there's an insured loss, making a claim will be challenging. Even with a PoA, underwriters and banks can throw up hurdles requiring the seller's cooperation.
If, after reading all that and others' posts, you are still interested, I can walk you through the process if you need it.