Financing and Credit

Buying Real Estate Subject To The Existing Mortgage Part 1 Of 3
By: Donna R.

The author has permitted the reprinting and redistribution of this article.

A "subject-to" offer simply means that the buyer is willing to purchase a piece of property "subject-to" some specific circumstance. Usually that circumstance will be the sellers existing mortgage. It can also be a variety of other things.

Buying Real Estate Subject To The Existing Mortgage Part 2 Of 3
By: Donna R.

The author has permitted the reprinting and redistribution of this article.

Writing The Offer

A subject-to offer is like any other written offer to purchase real estate. It uses the same general purchase and sale agreement. There is no special contract form required for subject-to transactions. The buyer merely wants to spell out the exact terms of the existing mortgage, along with any other terms or conditions that the buyer is offering.

Buying Real Estate Subject To The Existing Mortgage Part 3 Of 3
By: Donna R.

The author has permitted the reprinting and redistribution of this article.

If you are a real estate investor, taking over a property subject-to the existing mortgage, you want to be sure that your exit strategy will work with this existing mortgage. The seller will be depending on the buyer to make the deal work. It is very important for an investor buyer to do their due diligence to insure a profitable deal.

I am not sure if this helps anyone, but i was surfing for HML and found this list.

http://www.reiclub.com/hard-money-lenders.php

Hi, everyone just to give you a short rundown on me . 3 months ago i was laid off , and now i decided to break out of my shell and take charge off my life . I have lots of questions but 1 at a time for now . My brother is into real estate and is in need of cash he has to much on his plate . So he would like me to purchase this duplex from him for 160.000 its appraised at 180.000 already remoled and zoned commercial is occupied with tenants . My question would be no job good credit how am i going to swing a loan with no job. Thank you Gary

Conquer Seller Objections When Buying "Subject to"

by Wendy Patton

[Editor's note: Buying a home "subject to" means "subject to the existing financing" already in place on the property. The terms of the original note with the lender stay the same, and the note remains in the seller's name. Typically, you would then sell the house to a tenant/buyer on a lease option.]

Most people get nervous about dealing with objections from the sellers. They worry that if they don't have the right answer, they will lose the deal.

Anyone have experience with private lenders?
Anything to look out for?
Questions to ask?

As always - your help/experience is greatly appreciated.

Thanks in advance!

steve

I was speaking with a mortgage broker yesterday who told me that the institutions he has been working with are looking for 20 to 25% down on investment properties.

Was I just speaking with a really conservative broker? Is this typical in the market today?

I'd be interested in hearing what some more experienced investors have to say about this topic.

Thanks

Hi all!!! I have been renting for the last 8 yrs. for almost 3k month. Recently we moved into a single home in New York and the house belong's to someone I know, a friend. The rent agreement will be two years, 1 more year left. He recently offered to sell the house to us @ $575k which to me is kinda to much. What I know he bought the house in 2003 for $340k. With bad credit, what would be the best approach to own this property. 'Assume his loan may be??. Any help would be very much appreciated.

Thanks

I am intersested in closing on two properties but I have a question. I am going to be the sole mortgagee for the first property and closing is set to be due in the first week of February. During this time I have also found another property which I will be partnering with a friend of mine to purchase. We will be taking out the mortgage together for this property (my 2nd). My question is this- since the rental income from my first property covers the PITI expenses of my first property, will the lender see it as a complete wipe and allow me to take out another mortgage?