So you have someone that needs help. You talk with that person and explain that you will take over payments and help them out. They decide that they need help so much that they will trust you. That is great. So instead you decide to flip it to another investor. Now are you sure they will make the payments on behalf of the home owner? What if the don't, do you feel any obligation to making sure the home owner's payments are being made? Yes, you can flip the contract to another investor if the contract states that. Now the moral dilemma kicks in. Should you flip it or stay in control of the deal to make sure you followed your word to the home owner? If not, then I hope you are not working in any of my territories because, in my humble opinion, you will give investors a bad name. Only you can answer this.
Good luck.
It depends on what your idea of a flip is exactly. If it means letting another investor come in and fill your obligations under the subject to agreement, I'd say no, mainly because of the implications mentioned in the above post. If you mean, can I sell the property to another investor wholesale, then yes. After all, that is really what a flip is, buy low and sell low. Under a sub-to contract, you take deed to the property. It's yours to use, lease, sell, whatever. The most important part of that contract, however, is that you're oligated to make those mortgage payments until the loan is paid off.
Why do you want to flip a sub-to? If you're worried about how you are going to make those payments, then I suggest that you birddog this one out to another investor. Not trying to preach, but you need a complete investing plan before you take the plunge and start buying properties, and that includes an "out" for each property that you consider buying. Good Luck
So you have someone that needs help. You talk with that person and explain that you will take over payments and help them out. They decide that they need help so much that they will trust you. That is great. So instead you decide to flip it to another investor. Now are you sure they will make the payments on behalf of the home owner? What if the don't, do you feel any obligation to making sure the home owner's payments are being made? Yes, you can flip the contract to another investor if the contract states that. Now the moral dilemma kicks in. Should you flip it or stay in control of the deal to make sure you followed your word to the home owner? If not, then I hope you are not working in any of my territories because, in my humble opinion, you will give investors a bad name. Only you can answer this.
Good luck.
Tom
It depends on what your idea of a flip is exactly. If it means letting another investor come in and fill your obligations under the subject to agreement, I'd say no, mainly because of the implications mentioned in the above post. If you mean, can I sell the property to another investor wholesale, then yes. After all, that is really what a flip is, buy low and sell low. Under a sub-to contract, you take deed to the property. It's yours to use, lease, sell, whatever. The most important part of that contract, however, is that you're oligated to make those mortgage payments until the loan is paid off.
Why do you want to flip a sub-to? If you're worried about how you are going to make those payments, then I suggest that you birddog this one out to another investor. Not trying to preach, but you need a complete investing plan before you take the plunge and start buying properties, and that includes an "out" for each property that you consider buying. Good Luck
Roger