All Forum Posts by: Brandon Lee
Brandon Lee has started 2 posts and replied 4 times.
Hi there, I'm a California based investor looking to buy several out-of-state rental properties per year in the Greenville area. Thus I am looking to build a solid team (agent, property manager, contractor). I have used the BP agent finder but only 2 agents were listed and none have responded to my request. If you are a member in the area, or have any personal recs, would love to connect. Thanks!
Post: Subject To Financing - What happens to the loan portion already paid off by seller?
- Posts 4
- Votes 3
Quote from @David M.:
In a typical deal, this is where you "pay" them. In your example, say the market value is $600k, and that is your agreed sales price. Well, now you need to show up with $400k of cash to cover the difference.
Subj-to offers tend to work better when the purchase price is closer to the principal balance.
Creative deal specialists will tell you otherwise. "Find their pain point" and try to alleviate it. For example, this is where you take over the property and promise to pay them x amount over potentially 40 years, or whatever. The seller may never realize their equity, or do so over such a long period of time it becomes a 0% interest loan to you.
Or, some sellers are in such dire straits that they will let it go for far less than market value..
Good luck.
Makes sense, thanks for the color!
Post: Subject To Financing - What happens to the loan portion already paid off by seller?
- Posts 4
- Votes 3
This is very helpful, sounds like the deal can take on many forms depending on whatever the seller is willing to accept. Have a lot more clarity now, thanks all for your responses!
Post: Subject To Financing - What happens to the loan portion already paid off by seller?
- Posts 4
- Votes 3
Hello, I've been watching a lot of Pace Morby videos and researching online, but can't seem to find the answer to this simple question. In a sub-to deal, you are assuming the remaining payments of an existing mortgage. But do you also have to pay off the portion of the loan that's already been paid off by the seller?
Example: Seller's original mortgage was $500k. Seller paid off $200k of principal, leaving $300k remaining on the loan. Buyer assumes payments on the $300k balance, but what happens to the $200k that the seller paid off? How would he benefit from just transferring remaining payments to the buyer, while never getting his $200k back??
Sorry if I'm missing something dumb and obvious, but can't wrap my head around this part. Thank you for any help!