Originally, I wrote a program that takes user input and displays what estimated profit there is in a subject-to deal that is sold using owner-carry financing. I then converted it into a spreadsheet format. Now I converted it into a web-based form that anyone can use. It uses Javascript and CSS (both of which, I admit, I'm not very savvy with). I can't guarantee it is 100% accurate, and I know for a fact it doesn;t have a lot of error checking, so user beware!
The form is located here.
Be aware that the text input boxes shaded in light gray are REQUIRED items, and the darker shaded input boxes are computed fields that are read only. Let me know what you think (good and bad). :-)
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5 comments:
I added some help and made it so the input fields are disabled and skipped on focus. It should flow a lot better now.
Wow.. Very nice!! Would it be possible to put a mask on the output fields so there are commas as thousands separators?
It's still a bit early for me, so I'm not thinking clearly.. The New Loan info is the loan you make to the new buyer? It's you that are doing the Owner Carrying Financing? Then your buyer refinances after some time to pay you off and you pay off the original seller's loan?
I need to review the info on buying subject to's... How is the paperwork written up between the investor and the original seller? How do you get the seller to go along with this?
Shaun - Thanks. Yes, the "New Loan" information is your loan to the new buyer (i.e., the all inclusive trust deed, or wrap, note). In the note, you give the buyer a certain amount of time to refinance (usually, 1-3 years). Two years is the norm as most mortgage brokers say having a good track record with bruised credit for two years will generally allow you to get qualified. When the buyer refi's, the old loan is paid off as is your note to the buyer - you pocket the difference.
As far as Sub2's go, you generally write up a P&S agreement and send in an authorization to release loan info to their lender to verify the loan info. You then submit a change of address so the payments go directly to you now. And have the owner sign the deed over to you. There are a lot of "in-between" things to do, but that's the bulk of it. It's also good to get a limited POA for future problems.
Thanks Eric. Having not done a full Sub2 w/OCF, I'm really guessing these are the only costs involved, so user beware. Hopefully, I'll start doing some in the next few months and will revise my program accordingly (whenever I can find time).
Hi Steve, So nice to see a fellow Texan that knows Texas real estate. I am a newbie, and I have enjoyed reading your post. I am also interested in doing Sub2s, and I was hoping to have you elaborate on "There are a lot of "in-between" things to do, but that's the bulk of it." It has been nearly impossible to find all the right steps to doing a Sub 2 in Texas. If it is too lengthy to explain, do you mind directing me to a place that will, and please don't say the dealmaker. Thanks.
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