Posted by dewCO on July 30, 2000 at 11:02:50:
How are you involved in this property right now? Do you have a L/O from the owner and you have then L/o’d it out again? or what?
“Subject to” means the seller deeds you the property. ANy loan(s) in place stay there and you make the payments. You can then flip it, rent it out, L/O it, or live in it yourself, or whatever. You are on title. What are you now? on title or leasing? If you are on title how did you get on title?
Subject to or Lease Option??? - Posted by ED VA
Posted by ED VA on July 28, 2000 at 17:02:14:
Hello everyone,
I have a question on subject to vs. L.O.'s.
I recently done a deal on a lease option but am wondering if I should have taken it subject to. I didn’t make much at all on it. Only done it to help the seller & one of my buyers.
I am focusing on flips and have done a couple. But ran into this deal that I couldn’t flip so thought I’d make a few dollars on it. Which I did. But after reading some of the posts, I think it would have been better to do a subject to deal.
If I do a subject to deal, do I get the tax advantages?
This would have helped me big time on taxes.
I could probably go back to the seller NOW and still get a subject to deal, even though I have a tenant/buyer in place that is taking care of EVERYTHING. I have nothing to do with the place at all. If he blows his responsibilities, I get first chance to take it back BEFORE it goes back to the seller. Other than that I don’t hear from them at all.
If I did go back and get a subject to deal with the seller, what is the worst thing that could happen?
Now I know that if I put into the contract that the only recourse that the sellers has if “I” default, would be to take the property back WITHOUT affecting my credit. Beleive me, she DOES NOT want this property. Nothing wrong with it other then BAD BAD memories from a divorce.
I know nothing about subject to so any info would be greatly appreciated.
Also are there any courses that focus on subject to deals?
Thanks for the info in advance.
Ed VA