Love Austin Homes Investing Blog

I have a situation where I think a “subject to” would be appropriate.
I have not, however, ever done this before.

Can someone out there direct me to a good resource for a sample
contract as well as the necessary steps I should take to protect my
interest (filing of deed, notices, etc.)

Your assistance would be greatly appreciated. Thanks

Robert

ANSWER

Robert,

You can pay an attorney, such as Charlie Brown, to draw up the necessary documents for you, or you might consider teaming up with an investor that’s done several of these before.

Whereas the contract itself it not overly complex, there are many many things to take into consideration when doing sub-to involving title, insurance, future bankruptcies or foreclosures, escrows, balloon payments and ARM verification, LLCs and/or land trusts, loan acceleration, etc. etc. Mistakes and short-sightedness can generate major headaches in these deals, if you don’t really know what you are doing…

Phill

I have several properties in need of funding. A few are set to go on
the steps on Tuesday and I need assistance in the purchase. Looking
for someone to front the purchase and construction cost. ROI 30% in 3-
5 months. We are do all the grunt work. I.e. - locating properties,
negotiate deals, putting teams together, marketing the house, etc. You
just sit back relax and let your money work for you.

ANSWER

I buy/fund lots of properties this way… Give me a call…

Phill

FHA Finalizes Anti Flipping Fraud Rules - Article 6/12/06

The rule takes effect nationwide July 7:

http://realestate.yahoo.com/Real_estate_news/story?s=rytimes/item-f9dbb8ab6fcca41b8aef2e25bc71154e.html

I’m looking for someone who can assist me in obtaining financing on
a property that I paid cash for. We typically buy houses for cash,
fix them up and flip them. I have one house however that I’ve
purchased and fixed up but have now decided to keep as a rental.
The house should appraise for about 90 to 100k. I’d like to pull
out about $60,000 in cash since it doesn’t make sense for me to keep
the cash tied up in a rental - I’d rather put it back to work buying
more houses.

The challenge for me is that I’ve only been investing full time for
about 9 months. I have good credit, and access to a decent amount
of cash for buying houses, but I assume most banks will look at me
as being self-employed for less than one year. That’s not a
problem for a regular refinance, but since this house doesn’t have
any mortgage on it at all I assume I’m looking at a home equity loan.

If any of you are mortgage brokers who have a solution for me at a
good interest rate please respond to this post or feel free to
contact me directly.

Thanks,
Chris

ANSWER

Chris,
I too run into that problem ALL THE TIME, and currently have a property that I need to get a mortgage on. It’s not easy.

I can tell you that Wells Fargo has a great program for exactly this scenario. They will give you a virtually no-fee mortgage based on the appraised value of a home you own without a lien. They even do stated income. The only catch is that you can only get 4-5 mortgages with them before you max out – which is my problem… Give me a call and I’ll hook you up with my private banker.

If someone has a solution for doing a cash-out mortgage on a recently bought for cash rental property – let us know!!

Phill