TurnKey Investor's Subject-To Mortgage Documents Collection (Table of Contents, Intro)
TurnKey Investor's Subject-To Mortgage Documents Collection (Table of Contents, Intro)
TurnKey Investor's Subject-To Mortgage Documents Collection (Table of Contents, Intro)
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The TurnKey Investor is a trademark of Intrepid Network Concepts, Inc. Published by: Ascend Beyond Publishing 1639 Bradley Park Drive PMB 110 Columbus, GA 31904 www.ascendbeyond.com ISBN-10: 1-933723-10-6 ISBN-13: 978-1-933723-10-5 Contributor & Reviewer: Josh Houghton Editor & Reviewer: April Potts Printed in the United States of America. First Edition. First Printing: October 2007
Book Ordering Information Visit www.turnkeyinvesting.com to order additional copies for private use or for resale. Quantity discounts are available. Special pricing for churches, schools, colleges, universities, and non-profit, charitable organizations. Visit our website at www.turnkeyinvesting.com to find more information on books, educational materials, and courses on how to create safe and steady returns through real estate investments.
Table of Contents
Introduction ...................................................................................................... 1 Educational Prerequisites ............................................................................. 6 How to Use the Documents CD-ROM .......................................................... 7 Individual Documents & Samples FSBO Information Sheet..................................................................................... 8 Authorization to Release Information .............................................................. 11 Purchase & Sales Agreement ........................................................................... 14 Warranty Deed .................................................................................................. 21 Limited Power of Attorney ................................................................................ 24 Compliance Agreement ..................................................................................... 27 Real Estate Purchase Addendum & Disclosure Statement............................. 30 HUD-1 Settlement Statement .......................................................................... 33 Individual Form Letters & Samples Notice to Lender / Mortgage Company ............................................................. 38 Notice to Insurance Company ........................................................................... 41 Request for Insurance Quote ............................................................................ 44 Loan Reinstatement Letter ............................................................................... 47 Settlement Instructions for Closing Agent ............................................. 50 BONUS: Deal Analysis Overview Worksheet .................................................. 54 Conclusion ....................................................................................................... 56 About the Author ........................................................................................... 57 About the Management Team ..................................................................... 58 Other Helpful Resources .............................................................................. 59
Introduction
When I first started out in the Atlanta area, stumbling around trying desperately to close my first subject to mortgage transaction, little did I know that I would eventually become an author and teacher of the subject. But here it is over seven years later and you, the reader, hold in your hands some very important and essential information to credibly and professionally close subject to mortgage transactions that can withstand sellers remorse and the passage of time.
Baseline Documents
These baseline documents are invaluable. What makes these invaluable is that these documents have been field-tested and evolved out of real-life transactions we have closed. These baseline documents are also valuable because you do not have to create or hire anyone to write these documents from scratch. These documents will give you a running start to succeed in your own subject to mortgage transactions and can be changed and modified to better suit your specific situation and legal environment. I highly recommend you have your local real
estate attorney or title company review and customize these baseline documents accordingly. In my research over the years, I have read dozens of documents, contracts, and agreements written by many authors, attorneys, and management companies. I have taken small nuggets of wisdom and insights from many of them and incorporated them into our baseline documents. Our documents are certainly different but not necessarily unique. However, they do reflect our highly credible style of doing business. At the risk of sounding boastful, this has worked tremendously to our advantage in our business which you now can benefit from.
Disclaimer
Let me make the customary disclaimer and say that I am not an attorney, real estate agent, or any other certified professional. Therefore, I am not giving any professional advice. I am also not dispensing any legal expertise. What I am dispensing are sample documents of what we use in the field (with sellers, lenders, and insurance companies) and at the closing (settlement) table. I am also dispensing my opinions as a negotiator, investor, and administrator of our own properties. In that regard, lenders, insurance companies, our closing attorney and, subsequently, our sellers and the public at large recognize us and our documents when we present them or record them into public records. We use these documents putting our reputations at stake. Fortunately, we are pretty darn good at what we do. I encourage you to take the time to read over the documents and try to pick up the nuances and subtleties therein. I think if you pay close attention, you will appreciate many of the bells and whistles we have included within each document.
An Elite Group
You are now part of an elite group of people who have access to this highly valuable and specialized information. Do not give this information out freely! This is part of your competitive edge! If someone wants and values this information, let them purchase it. You have come too far and invested too much in yourself to simply give it away to a potential competitor. If you have any questions on how to use these documents, please feel free to contact me at www.turnkeyinvesting.com. I will do my best to answer you. I will even take time to talk to your professional closing agent if they are nice to me! But remember, I am not giving legal advice. I am only sharing my opinions with you as a negotiator and investor of my own properties. If you can live with that, we will get along just fine. To your investment success!
Matthew S. Chan
Educational Prerequisites
Before you read further, you should know this Manual is the fourth title in The TurnKey Investors Subject To Mortgage Series. It is assumed that you have the prerequisite knowledge presented in the first three titles. These are the educational prerequisites to this Manual. The TurnKey Investors Subject To Mortgage Success Secrets is an introductory Audio CD that provides an overview of the areas subject to mortgage professionals understand and focus on. The TurnKey Investors Subject To Mortgage Handbook is the oversized manual that provides in-depth discussion and material on the mechanics and issues surrounding subject to mortgage transactions. The TurnKey Investors Subject To Crash Course is a set of three Audio CDs for advanced learners that builds, expands, and updates the material first presented in The TurnKey Investors Subject To Mortgage Handbook. Because this material is presented in dynamic, free speaking audio format, there are more distinctions and nuances of learning that are unavailable in the printed Handbook.
It is highly recommended that you acquire the assumed knowledge by reading and/or listening to at least two of the other titles before you move forward in this Manual. You cannot adequately use these forms and documents without the prerequisite knowledge! You can find these book and audio titles at www.turnkeyinvesting.com or www.ascendbeyond.com.
Special Features / Comments: This form is for internal office use only and not generally shared with the seller or closing professionals.
1. Seller Name: __________________________________________ 2. Address: _______________________________________________ City: ____________________ ZIP: ____________ 3. How long occupied? __________ Garage? [ Yes / No ]
County: ________________
Square Footage: __________ Age of Property: __________ Central air / heat? [ Yes / No ] Pool? [ Yes / No ]
5. Repairs & maintenance Needs: ___________________________________________________ 6. Who are the Owners? _______________________________ 7. Listed with Realtor? [ Yes / No ] How long listed? ____________ Listing expires: _____________ Appraised Amount: $______________ How did Seller determine? ______________
9. What does Seller think house is worth? $____________ 10. Mortgage Info
1st Balance: $___________ Lender: ___________________ Pymt: $___________ Interest: ________% 2nd Balance: $__________ Lender: ___________________ Pymt: $___________ Interest: ________% Type of Loans: [ VA / FHA / Conventional ] Behind payment Info: _____________________________ 11. Any Liens? Bankruptcies? Chapter 13? Chapter 7? Foreclosures? ____________________________ 12. ** Reason for Selling: ________________________________________________________________ How much cash does Seller need? $____________ 13. When does seller want to move? _______________ Where will they move? ______________________ 14. Comments: _________________________________________________________________________ ______________________________________________________________________________________
Office Use Only Seller Motivation: Excellent / Good / Fair / Bad Comps Range: $__________________ Monthly Rents Range: $ _______________
1. Seller Name: James & Susan Sellers 2. Address: 123 Anywhere Street City: Somewhere 3. ZIP: 32777
4. Condition of property? [ Excellent / Good / Fair / Poor ] Status: [ Owner-occupied / Rental / Vacant ] 5. Repairs & maintenance Needs: Leaky toilet, dirty carpet, master BR needs paint 6. Who are the Owners? Occupants living there 7. Listed with Realtor? [ Yes / No ] How long listed? ____________ Listing expires: _____________ Appraised Amount: $120,000.00 How did Seller determine? Self-estimate
9. What does Seller think house is worth? $130,000.00 10. Mortgage Info 1st Balance: $120,000
2nd Balance: $__________ Lender: ___________________ Pymt: $___________ Interest: ________% Type of Loans: [ VA / FHA / Conventional ] Behind payment Info: 3 months behind 11. Any Liens? Bankruptcies? Chapter 13? Chapter 7? Foreclosures? None we know of 12. ** Reason for Selling: Unexpected medical bills hit & they got 3 months behind How much cash does Seller need? None 13. When does seller want to move? 6/2/08 Where will they move? With family out-of-town 14. Comments: House is decent shape overall, some trouble spots, packing now
Office Use Only Seller Motivation: Excellent / Good / Fair / Bad Comps Range: $125,000 to $135,000 Monthly Rents Range: $950 to $1,100
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Special Features / Comments: This simple document does not require notarization. It is used during preliminary discussions with the seller. However, it can also be used after the closing.
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