All Forum Posts by: Brian Fouts

Welcome to the site, lot's of info here for sure!  I am also local and work with many local investors just getting into market, let's get together sometime!

That basically is Sub To financing.  Since the original mortgage/lender typically has lien rights and is on title, you are going to want that mortgage tied to the seller financing agreement.  Additionally, relying on the Owner to pay the underlying is risky.  We always use a third party service to pay the mortgage statements so we know they are getting paid.

The sub 2 deals we have done have been in Tacoma and Olympia area.  We have had two that were in Shoreline, but fell through at the last minute.  There definitely are more buyers outside of Seattle/Bellevue looking for Owner Financing.  The ones under $125k have gone VERY quickly.  We have typically done wraps, no lease options.

If you are doing wholesaling, please add me to your cash buyer list. We will take properties in the greater Puget Sound, SFR, multi, commercial, etc.

The loan/mortgage would be part of the estate and handled as such. Hopefully there is a will or living will that identifies a executor. Depending on how you acquired the property Sub 2, I would assume the seller has a contract/mortgage on you, so that would also be part of the estate. All in all, it would seem the bank wouldn't be concerned as long as the original note is kept current.

I would ask a real estate attorney.

If I had $400k, I wouldn't put it in real estate as I invest in real estate with other peoples money/financing. Working with a financial adviser/investor, I would put it in oil wells. If was to put into real estate, would try to spread it out. Use $400k for the down payments on positive cash flow rentals, duplexes, maybe couple multi's. Spread it out.

I would recommend reading up on subject to and then asking more detailed questions. The response to your question can be very very broad as there are so many different options and scenarios.

A subject to deal can be done on just about any home or situation, but the motivation of the seller is going to be very different for different situations and will play into whether or not an offer is successful. In my opinion, the best subject to deals are where there sellers have few or no other options to sell or get out from under their home. The best example is someone that is slightly underwater on their home.

Of course, this all depends on your exit strategy or what you are doing with the property, you haven't said though.

Since you're idle on the property (not being forced into action), you could look into Owner Financing the property to a non-qualified buyer. This could get you out from underneath the payment and you would save on the current loss you are taking, but would also give up any future market recovery. Worth $100k, owe $180k is a large margin to recover via the market I would think... also hard to Owner Finance (sell) for $180k when worth $100k. Tough spot.

Would like to attend, but am headed south that afternoon to start a 14 day road trip. Hopefully next time!

Yes, I would recommend having a real estate attorney that knows Sub 2 draft the contract for you, since there usually is specific language in it stating that is how the offer is structured.

Also, who will be putting together the actual closing contract, or mortgage/note you will have with the Owner that stipulates how you will be responsible for their payments and stipulates their rights if you don't pay, etc. My closing agency/attorney does all of the contracts and closing documents, one less thing for me to worry about.