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The Seller of a duplex I had been pursuing for almost a year has finally come around for the 2nd time, and is ready to let me take over his payments of $603/month. The thing is the duplex has been vandalized slightly more than when I started the communication with the Seller in June last year. Long story short, Seller is in California, could not deal with long distance landlording, so let a great brick 2004-built structure go. My contract did not reach him in time-as per him, and he thought I had changed my mind so went with another Buyer. The other Buyer has been stringing him along for almost 8 months now. So the Seller called me to ask if I was still interested in buying:-) He is losing $11000 a year on it by leaving it vacant.
Duplex, brick construction, vandalized.
Each side: 3/1 .5
Area: 1760sq.ft
Lot:5000Sq.ftLocation: Near a major highway and downtown Fort Worth. Warehouses, construction companies, industrial.
Street has only 12 houses, of which 2 lots have duplexes. One SFH recently rehabbed
House adjacent has sort of shady neighbors
House in front: was vacant owned by an out of state owner, delinquent property taxes, but now bought by a family that has rehabbed it.Property Tax: $1800/yr
Owner owes: $63k mortgage balance.
Repairs required: $22k-$25k
ARV:$131,000Monthly expenses:
Property tax: $150/month
P&I: $603
Insurance: $150
Vacancy allowance: 6% = $150
Maintenance: (after rehab): $100
Miscellaneous: $100TOTAL MONTHLY EXPENSES: $1253
On section 8: monthly income for both sides can range from $1826 to $2498. FW has a shortage of Section 8 properties.
Traditional renting:
Rent A: $700 (now vacant)
Rent B: $750 (now vacant)My exit strategy was to either wholesale the complete duplex, or buy it subject to, and sell both sides individually on a wrap with owner Finance.
My questions are:
1. Should the Seller come to the table with at least the closing costs to compensate for the extra destruction that has taken place since last year?2. Which paperwork and proof do I need from him to show me how much he owes, the terms of the Note, maturity date? What else?
3. WHAT CONTRACTS DOCUMENTS DO I NEED?
4. WHERE DO I FIND THE PAPERWORK?Thank you.
AyeshaAyesha
Unless each side it titled individually, you cannot sell them individually with seller financing. You’d have to sell the complete unit with seller financing.
You can use a TREC contract to buy subject-to. (Texas real estate commission) Available on their website.
You need a letter of authorization to contact his mortgage company to verify the balance and interest rate.
At closing, you’ll need a power of attorney for the property for taking care of insurance, mortgage, etc.
You need a CYA ( cover your a…) letter at closing to disclose the due on sale clause.
ETc…There is a 90-page special report in the Premium Member section with DETAILS about buying subject to — and it includes all the documents you will need including sample Warranty Deed, Deed of Trust, CPA letters.
Jackie,
I understand about separate deeds, I just wanted to know if something like this can, or cannot be done.Secondly, can you please post a direct link to the report?i cannot find it, or maybe I am not looking in the right areas of the website.. all I have found are coaching calls on Subject 2, but no 90 page report.
Thank you again for all your help. I am going to send in the contract today.
This is a link to the Coaching Call AND the 90 page report about buying subject-to
You must be logged is as a premium member to get access to the report
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