All Forum Posts by: Michael Moikeha

I am purchasing a property Subject to in the next month or so, and I am gathering info to prepare myself for that as this is my first sub2.

I scanned through the docs in the FilePlace and did not see any disclosures specific for Sub2's.

Everything will be done through a Real Estate Attorney, so I am not looking for legally advice or documentation that will be used without being reviewed.

I would like to review types of discourses you have used when purchasing sub2 so I can feel comfortable with my understand of everything when I do begin the process.

Thanks in advance!

@Jon Holdman - Thanks! I am talking with some local investors and will see who they like to work through on Sub2s.

I am all for CYA paperwork, and the sellers do understand the risks.

Is there any PNW Investors with local contacts?

Anyone else run into this issue and have additional advice?

@Jon Holdman - So are you just suggesting that it may be this Title companies policy to not accept a Sub to agreement and its easy enough to just call around to other Title companies to find one that will work with it?

I have a property that I will be purchasing sub to. The owners are great people and they understand the risk pertaining to the due on sale clause and know that if we miss payments it will hurt them.

I went to Escrow today to start the closing process and I was told that they can not do a subject to, but it would be considered an assumption and we would have to speak with the lenders to get approval for that. Obviously this is not what I want to do, as that defeats the purpose of purchasing sub to.

Before I start calling around to other escrow offices, I wanted some advice. 

Is "Subject To" just a REI term? Is there a proper documentation process/legal methodology for closing in escrow that goes along with this?

We were going to bring in a Real Estate Attorney for the final steps before closing to ensure that everyone is safe and happy, but does this have to be structured through an Attorney first?

Here are the details I am working with so if you try and describe the steps to me, we are on the same page.

Purchase Price - $280,000

Mortgage Owed - $250,000

Payment to Seller - $30,000 ($10,000 at time of purchase, and $5,000 over the next 4 years)

I have a seller who owns his home outright. He wants $190,000, $10,000 down, and we can get away with monthly payments of $900. (He is renting at a really low rate right now). He will carry for 2-3 years. If we get it under contract, get all the proper paperwork with him filled out, he transfers the deed and puts a lien on the property, can we turn and sell the property to another buyer as an owner carry?

We would sell it for $220,000, $15,000 down, and $1200 monthly payment on it. We transfer the deed, put a second lien on the property, and have a 2 year bubble payment so they will need to refinance.

I am not asking for legal advice, but I want to know if this is possible and "legal" (We will run our paperwork through a Real Estate Attorney).

Thanks!

I was searching around trying to find out how a BPO agent is actually chosen? In the past I have had a great agent, and I was wondering if a particular lender uses the same BPO agents, or if they are pretty much randomly chosen from a list?

@Account Closed Thanks! When we hit the bigger properties, and those closer to Seaside, I will be in touch. 

neighborhood info:

Milwaukie Oregon is a strong market. It boarders Portland and as Portland continues to grow (it was the #1 place to move to in 2013), so will the boarding cities, as we have seen with Beaverton, Hillsboro, Lake Oswego, and West Linn. Milwaukie has a new bridge about to be completed that will connect Milwakuie to Portland's OHSU, which is the largest employer in Oregon.

Milwuakie is heating up!

@Copelon Kirklin 

I have average is 254,000 with a low of 184,000 and a high of 298,000.  

The best comp  is of a home purchased earlier this year for 107,000 and was sold last month for. 245,000. The property matches very closely to the one we are purchasing. 

@Tony Salazar

I responded  via email