All Forum Posts by: Tim Ivory

For better or worse, I send the email out. Will let you guys know how it goes. Hopefully, I can find one more awesome person willing to work with me. At the very least, I'm opening dialogue until I can refer customers who can close now so it'll make it worthwhile for them to run these prequalifications. Good tip!

Excellent advice and points from both posters. Thank you. I've collected 25 or so local mortgage broker emails and I'm about to send out an email proposition to them with mailchimp. It would be a big help if I can get an opinion on it before I send it. Can I send it to anyone's email?

Sure enough, the first local person I called was willing to work with me. They are investor friendly, him being one until recently. However, having a few lined up might be worthwhile.

@Stephanie P. Are you saying I shouldn't contact a mortgage broker until I at least check there credit myself from a report they give me, and can verify 12 months previous rent checks? What do you mean cash to close, like closing fees at a title company, or a downpayment? I will be collecting a Lease Option Fee which can hopefully also count as a down payment.

@Jay Hinrichs I did not think about the backend work involved. Is there a difference between doing a pre-qualification and an actual full blown application?

@Robert Gilstrap That's more like it. I tried calling twice, but it might be a bit early. I'll try again in a few hours.

After doing a bit  more research, here is the full list of docs and contracts for a subject to deal, indeed, a lot to consider.

1. Offer to Purchase/Purchase Agreement..
2. Warranty Deed.
3. Seller’s Acknowledgment.
4. Letter for Due on Sale Clause.
5. Affidavit of Liens.
6. Bill of Sale.
7. Escrow Payoff.
8. Notice to Insurance Company.
9. Limited Power of Attorney.
10. Notice to Mortgage Company. (Optional)
11. Bank Authorization. (Control over Mortgage History/Future Payments)
12. Seller’s Disclosure
13. Lead-Based Paint Disclosure

Hey guys, I had this post pinned in chrome in case anyone responded. Going to unpin it, so if anyone is kind enough to reply, please tag me so I can get the notification, or send a pm. Thanks.

@Curt Smith at the training, did they help with the docs?

Thanks Curt. Sounds like it might be a bit of a struggle to put together, with no or little help from local attorneys. Nonetheless,  it must be done. There are 4 attorneys near me, one president of a title company. I'm also from a small town with 65K population, which is a bit bigger than your county. I'll extend my search radias as far as I need to, though.

Is the warranty deed part of the P&S contract or is that a separate addendum to contract? I was hoping it would be common to simple say that the seller will transfer title in a warranty deed. Ok, now that I spell this out, it makes sense that a new deed will need to written up so I also need this. Just to double check, a new deed will need to be created since the lender who holds the mortgage has the original until it is paid off, is this correct?

I will transfer title into my LLC, I trust that will suffice. I also already have a renters agreement for when I lease the property out to a tenant buyer, with a few additional documents to sign as part of this package. It is only the subject to that I need to put together a contract and docs for.

Would it be possible to send me a copy of the subject to package you use? I'd be willing to pay a bit if it'd help for the trouble. I could use it as a starting point at the least.

I'm looking for a basic starter contract that I can use for any subject to deals. I did a search but couldn't find anything obvious.

Contract highlights

• Transfer title via general warranty Deed

Bonus if it has these things

• Disclosure statement - when payments are due, how they are paid.
• Ability to access lender/account to update and/or make payments.
• Ability to talk with insurance people to change insurance or edit account as necessary.
• Investment Viability Contingency (Can give it back if it become un-viable as an investment).

I also need to prepare a subject to contract in case I need it. I will likely include some addendum and disclosure statements, but for the base of the contract, it sounds like I should start at a typical state (TN) purchase and sales contract which has subject to as an option with title transfer via general warranty deed. Is this correct?

Off topic, but I assume the seller then creates a new deed that transfers title to my name, even though the mortgage owners should have the original deed until the loan is paid off, is this correct too?

Interesting, doesn't seem anyone is interested so far. I can see how needing to wait a couple years before they qualify might slow things down, though. Hopefully, I'll have better luck at the local level. On the national side, I guess I have no other recourse but to reach out first and play the numbers game. Hopefully, at least one will be interested.

On that note, can anyone else recommend a good mortgage broker to work with for lease options? Any tips to accomplish what I'm trying to do would be greatly appreciated. This isn't a novel strategy, so I know other people are doing it, though, perhaps posting in the Lease Options thread might be a better fit. Thanks for your time.