We may already have the type of house that you are looking for. Once we place you in one of our properties, you make monthly rent payment to us. There is a non-refundable Option Fee to participate in the program. This can range anywhere from 3-10% of the purchase price of the home. The full Option Fee is applied to the purchase price of the home when you go to purchase it. This is a big plus for the mortgage companies when it comes time to qualify for your mortgage. The more that you can show as a down payment, the better. Although many lenders will accept 3%, or 5% down, some will even finance the closing costs.
After we agree on the purchase price, and verify the amount you owe on your mortgage, if the circumstances are right we may pay all cash at the closing. If not, we may work out monthly payments for a period. Whichever way you go...
You get immediate relief from your monthly obligation to the mortgage company.
Mainly what we can do is take your home over subject to the existing mortgage. Which means, we will be responsible for your payments and maintenance. We will put a tenant/buyer in the home, and help them get financed, At that time, they will be getting the home re-financed in their name.
Unlike working as a Realtor, we are investors. We agree to make your mortgage payments while we find a buyer for the home. So if it sits empty, we can often times make those payments. Also unlike a Realtor, there is no listing agreement and no 6-7% selling commission. Additionally, closing costs which are the responsiblity of items together and on a $100,000 home, that cost represents $10,000. Now add in the typical 3-6 month period that it will take to find the buyer and have them get qualified and finally close on the home and you've just made monthly payments on Principal, Interest, Taxes, Insurance, Utilities, Maintenance and Repairs. Remember that if you get a buyer today, it typically takes 45-60 days for them to get financing. Guess who would pay for your home during that period? You would!!. That's 2 more payments you would have to make, and that's if you had a buyer today. What if it takes 6 months?
One of the main problem solvers we can offer is Peace of Mind. Sometimes the hardest aspect of having to move is actually having your home up for sale and your life in limbo. When you approve the paperwork with us, you will know that your payments and home are taken care of so you can start over and have that peace of mind.
We can take care of all the paperwork in about a week. We simply order the title research, and draw up the papers. We can set a date when you can move out and we will take over the home after that.
We will make payments on your loan while our tenant/buyer builds equity and finds their own financing.
The best part is, your loan doesn't even have to be assumable for this to work! Our program works, regardless of the type of loan - assumable, non-assumable, assumable with qualifying, FHA, VA, Conventional.
We take care of your monthly payments, take on all responsibility for the maintenance and upkeep of your property, and liquidate your asset, before it becomes a liability! Now seriously, does it get better that that? As we stated before, our program can work in an situation.
Benefits to Sellers
For you the Seller we thought that we should summarize the benefits of this program. Maybe not all these points apply to you, but most should:
Rapid, flexible sale of your home -
- You select the date that you want to move out
- We can complete our transaction in 5 days!
Certainty of Sale -
Avoid the disappointment of "selling" your home, waiting 45 days for the buyer to qualify and then finding out the deal fell through for any number of reasons. Then the process starts all over again, but the pressure is really on you now.
Avoid Sales Commissions -
No need to pay a Realtor the typical 6-7% fee.
You Get Quick Relief from Mortgage Payments -
Compare that with a Home Listing that can go on forever!!
Avoid Typical Closing Costs -
Avoid the necessisty of paying for Surveys, Title Insurance, Deed Preparation, Courier Fees, Recording Fees, etc.
Eliminate a Listing Agreement -
We provide a Sales and Purchase Agreement; remember we are BUYING your home.
Eliminate Time Consuming House Showings -
You won't have to show your home anymore. On the average, we show your home less than 4 times, nearly always after you've moved out. We find qualified, motivated tenant/buyers.
Benefits to Buyers
This program will help you to build up equity in the home of your choice while you improve your credit rating.
- Gives you more time to build up your base income
- Locks in the price of your future home to avoid price inflation
- Helps to get a better mortgage in 12-24 months than the one that you qualify for now.
This makes it much simpler for nearly 40% of the people who have trouble quailifying
for Class A mortgages.
The "Subject To" Process
Usually we begin with a phone call to find out some preliminary information concerning the property, desirability of the home, mortgage information and seller timing and motivation.
Next, we meet in your home and review your paperwork. In preparation for this meeting, we usually have performed a competitive market analysis to determine the approximate value of the home. At this meeting we explain the required documentation, such as Warranty Deed, Sales and Purchase Agreement, Power of Attorney, Disclosure Statements, Notices to the Lender and Insurance Company. We leave samples of all documents that will be signed so that you may review them with whomever you choose.
While we're in your home, you can show us any repairs or cosmetic improvements that need attending. We agree on a schedule for signing documents and for change of possession. We can be very flexible on our date of possession, but once we set the date, we want to be sure that the home will be available for cleaning/painting crews, as well as initiation of our advertising.
After this meeting, we run a title search to be sure that there are no encumbrances that would cloud the title when we next meet. This search takes about two days, but provides us both with the certainty of the ownership, status of the liens (mortgages and promissory notes), and gives us the exact legal description for creating a Warranty Deed.
At our next meeting, we sign all the forms. The Warranty Deed and the Power of Attorney require notarization. Several copies of each are signed, and you get one copy of each document for your records.
Our last meeting is when your moving vans are loading your possessions. At this brief meeting, we ask that you give us the garage door openers, keys and a list of all the utility companies. We will contact them to switch payment of the services. Since we're going to send in a cleaning crew, there is no need for you to spend much time making your home pretty as you move out. However, we recognize the pride that you have in your home and we always appreciate the Sellers housekeeping efforts when they move out.
After you leave, we provide cleaning and maintenance efforts to assure that the home is in 'move-in' condition. Typically we don't show homes more than 3 or 4 times to prospective tenant/buyers. Using our techniques for advertising and pre-qualifying, tenant/buyers have few reasons not to sign an agreement to purchase the home.
You will probably not hear from us for sometime after we take possession of your home. We transfer the utilities and notify the insurance company and lenders. When out tenant/buyer exercises their option, we pay off your mortgage (using the Power of Attorney documents) and notify you that your mortgage has been satisfied.
