All Forum Posts by: Michael Thompson

@Aaron Brown - How much do they owe on back property taxes?

@Dennis M. @Constancia Russell

I agree with Dennis.

@Luis Medina - Does your state allow contract for deed? You could sell it on a land contract or a wraparound mortgage. You might even be able to get away with a lease option if you structure it correctly. It would be a hybrid between a lease and a sale. One could make the argument that it was a sale and they technically own the property.

But I’m not sure of your goals with the home.

@Andy Farra Do you have a loan on the property or do you own it outright?

If you own it out right then you could offer owner financing on terms and set the terms how you like. If you have a mortgage in place then they are buying it subject to the underlying mortgage. That is a specialized contract and I would have your lawyer review their version.

The risk you take is they do not pay your loan and yes you are responsible for that mortgage. I have a clause in my subject to contract that says if I do not pay the mortgage for a 90 day period I quit claim deed the home back to them.

@Joe Doman - Property taxes get reassessed yearly on all properties. State wants their money. Or are you talking about homestead deductions and other owner occupied type of deductions?

@Jonathan Toruno - My advice is to continue to find someone local that does a lot of subject to but that’s easier said than done.

I worked with a lawyer for 3 months making changes to a subject to purchase agreement, adding and deleting things. Then I found a local lawyer that already sells subject to PA’s. Honestly I liked mine more.

Remember that they need to sign a POA to you and sign a mortgage payoff release at well.

@Gerald Mcmillan You have time then.

@Gerald Mcmillan - What happens at the end of the deadline? Is the tax sale happening or is there just a penalty?

Definitely an advanced strategy with nuisances and pitfalls.  But positives as well!  I agree with @Jay Hinrichs and thinking this is no money strategy down is a lie.  Yes the barrier to entry is low as far as money but the capitalization comes in when things go wrong.  Like mine when the original seller filed for bankruptcy on a house he just sold me and the mortgage is now current. 

@Wayne King - Propelio TV is a great learning source with Grant Teach Me Something.  Mentors are the best option in my opinion.  Otherwise mentorship is the best way to learn.   Books in general need to be updated regularly in the investing world but that is really true when it comes to Subject To.   And it's more state specific than general real estate investing.