Countdown to a quad closing!

Today was a happy day! Not a closing day yet, but the next best thing. Signed contract day! The second quad deal that I've been toying with for a while now is officially under contract as a totally "Subject to the Existing Mortgage" deal. Yippee!!! I'm just a title search away from owning a nice cashflowing quad!

Actually, I'll be owning 50% of a nice cashflowing quad. I was in the unfortunate circumstance of having already put some of my small amount of cash into the first REO quad I found (which is still under contract and up-in-the-air about closing), when this second Sub2 deal, the deal I really had been looking for, came along. So with very little cash left in my account and the seller's sob story of how impossible it was to keep the place rented, I hesitated to put the building under contract immediately. Sometimes he who hesitates is lost, but I knew that I would have a hard time buying two quads at the same time with my very limited funds. But lucky me, I happened to had met a local fellow investor in my social networking earlier in the year, and it turns out that she was looking for this exact same type of deal too! So now I only have to put up half of the title, closing, back payments and holding cost money, which takes a huge burden off me and gives me the confidence to move forward in the deal. It also helps that she has a great method for keeping her units rented!!! =)

So today we met the seller at the property (for the thrid time!) and he readily signed the contract, showed us copies of his leases (three units are rented, for the moment), and gave us authorization to contact his mortgage company so we can start the Sub2 process. Title search was ordered today and we're going to get an inspector out there in the next day or two just to give it a once over and know if there's any structural issues. Then, within a few days or so, we'll have ourselves a closing! Did I say "Yippee" yet???!!!???

The nice thing about Sub2 transactions is that it really is a winning situation for everyone. We get a property that will cashflow and, eventually, build good equity (there's not much equity in it now, but that's not what I'm after), the seller gets his back payments caught up, avoids foreclosure, his credit score improves over time and he gets rid of the headache that he just didn't want to deal with in his retirement. Oh, and the bank gets to keep getting payments on their nice lucrative loan, but with banks being such whiners and tightwads right now I really don't care what's in their best interest.

Happy day! I'm so excited about this quad that I sometimes forget the trouble I'm having on the other one I have under contract! But not for long... sigh. More on that in another post, right now I just want to revel in the fact that I have very nearly achieved what many people told me was impossible/extremely unlikely. Now I wonder what is the appropriate amount of nose-rubbing I can do without being unlikeable at investor groups? ;-)