All Forum Posts by: Farrukh Amini

Subject to means you take over the payment on the underlying mortgage and the seller walks away and leaves the mortgage in place regardless what state you’re in. 

You just use the regular PSA with subject to addendum and disclosures to buy. When you sell you sell on contract for deed, or lease option. 

Look for FSBOs on Zillow with over 90 days on market and call them. May be  able to find a few that are motivated to sell faster. Propose OF with their asking but favorable terms to you.  

Are you looking to buy your primary in SoCal? I’ve got one in a Chicago suburb, but not intended for investors.  

Hey Nick. 

Glad it was helpful!

Oh yeah, that's a given. I totally agree and never implied that the OP should over-leverage the property beyond what he sells it for because that's a recipe for a disaster. My assumption was that the OP understands this. My comment was made with the assumption that refinancing would be needed to lower the rate of the underlying mortgage. If cash out is needed that has to be carefully thought out not to exceed the value of the property. 

Ah, didn't realize you're in TX. I haven't' done deals in TX but Yes, there's some kind of special regulation about CFD specifically in TX, but I think there's a way to navigate that and stay compliant. I have to look into that and get back to you.

Another way to go about it is a lease option. 

Not an attorney or accounting or financial advisor, but what I'd do if it were me: I'd remove the children from the deed, finish the HELOC, then create a living revocable trust naming myself, my wife, and my kids as beneficiaries, and transfer the deed to the trust - done!
You have a legal right to transfer your property to your trust and the lender can’t call the loan due (per Garn St Germaine act)

If you sell on CFD and don't record the agreement at the county you can refi the loan

At that price point forget about Hoboken. Actually, forget about Hoboken altogether. 
there are some neighborhoods in JC that you can find cash flowing deals at under 600k. This topic has been discussed many times in the forums. Below are a few links to those discussions. Hope these help:

https://www.biggerpockets.com/...

https://www.biggerpockets.com/...

https://www.biggerpockets.com/...

https://www.biggerpockets.com/...

https://www.biggerpockets.com/...

https://www.biggerpockets.com/...

A commercial loan typically will require minim 80% stabilization so don't lose time with these. Based on your numbers you have to jump on this deal before someone else snatches this up. Even with HML this is a great deal. As soon as you stabilize it you can go an refi with a commercial low rate loan. Better yet go with rehab or bridge loans which will be even cheaper while you fix and rent it. Seriously tho, better get there tomorrow and sign the contract and start your due diligence. Depending on your location I can refer you to a few lenders.

Depending on how much the seller wants, you can structure it many different ways: you can pay the owner upfront cash for the equity and take over the deed subject to the mortgage and liens, or pay a smaller down payment and do a wraparound their mortgage and equity, or do a separate note on their equity, many ways to go, just need to know the purchase price. 

Also come types of liens can be negotiated down if you take over those and deal yourself, you can make a bigger spread for yourself.