It's Funny
Every one says that sub/2 is a great way to get started when you have no money,,or good credit,,,,,but then everyone says that they have to put
$5000----$10000..to get the deed,,,,,please help me if I'm missing something here.................MD
[ Edited by mjdreal on Date 12/22/2003 ]
I guess I stumped people on this one.......................MD
mjdreal,
Who is everyone that says you have to put up that much money to do Subject To deals.
This is like saying "The World Is Going End", yes maybe someday it will.
Let's get a little bit more subjective in your post, rather than everyone says.
Who says?
John $Cash$ Locke
The money "those people" speak about is probably the arrearages that have to be made up in a preforeclosue situation, which seems to be one traditional way of doing subject to deals.
All those back payments have to be made up to make the bank whole and stop the foreclosure.
John, would you say this is one possibility why folks mention those figures?
Best, Dave
well with 5k in a preforeclosure, i think that an option would be a better bet unless you already have a number of T/B's lined up where you can get enuff down to cover any arears.
if the seller is wanting 5k outta the deal, tell em that you'll pay them once you sell the house. put it in a contract. if they want 5k now tell em that you cant do that unless they are simply wanting you to buy the house for 5k while they still make any payments. lol... dont think you can do that tho.. well you can, but the bank will foreclose on the house and you'll lose 5k.. heh go figure.
[addsig]
davehays,
Yes Dave, this is done by the investors who work the pre-foreclosure market lists and there is nothing wrong with this method. Many times a forebearance is done with the lender, where all the money in payments behind are not brought current immediately or placed on the backside of the loan.
My main thrust is to reach a seller before they are in this stage. Thus we are now dealing with "U-Haul" money or moving money versus making up back payments.
Every deal stands on it's own no matter what the payment made to the seller, but there are many $10 - $500 - $1000 down deals for the sellers equity. As a matter of fact there are deals where the seller pays you to take the house or makes a few months payments up front on the property .
I just did not want to be "stumped" on this one.
John $Cash$ Locke
Thank you guys for your help....John I didn't meen to get under your skin,,,My main concern was that people like the writers of ABC'S of subject two and yourself make it sound like this is a great way for people like me that only make $10.00 an hour and can't afford to give someone $ 5000-------$10000 down for a deed but are dieing to get out there and make an extra $ 25,000 to $ 50,000 a year in REI can do it with almost nothing down...I understand that it depends on how you talk to the people and what there needs are... I understand In order to get a killer deal I might have to come up with money,, but in most cases is it realy as low as u-haul money or is it more like $5000--------$10000 upfront...Or is it more likly to get a home owner to let you sell the home first and then give them there money... I just don't want to get my hopes up thinking that I can do this with not alot of money,,that's all,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,You guys have been great,,,,,,,,,and again didn't meen to get under your skin,,,,,,,,,,,,,,,,,,,,,,,,,MD
I'd like to know this too. I'm in the same boat as you are mjdreal. I also can't decide if I should focus my time on subject 2 or wholesaleing since I need quick cash????
<IMG SRC="images/forum/smilies/icon_smile.gif"> [ Edited by iamhappy on Date 12/23/2003 ]
Mjdreal -
Through my experience in investing Sub2 it does usually take some money to do a deal. However, if you are low on cash why don't you try to find a private investor with cash or see if you can get a line of credit from your bank or credit union to get you started.
every deal stands on its own merit. one deal may need 50k to make 100k and the next 0k to make the same. its a numbers game you have to say "do i want to make this deal or is there one out there thats better." don't get hung up on the money...make the best deal with what you got and move on to the next it gets better every time. you will learn to love the difficulties they only bring you closer to the closing of the deal. ggod luck kenmax
Sub2 is a great way to acquire property for many reasons but know this..........
If you are going to hold property and by hold I mean anything that you are not selling for cash NOW, you had better have cash reserves or at a minimum the ability to get cash if needed. I say this because if you hold property (rent, lease, lease option, seller finance, CFD, LC, etc.) there will come times when you get properties back. Getting them back most times means repairs have to be made before they can be sold again.
Don't be fooled into thinking that because you are selling on a L/O or land contract that they are out of your hair for good because most won't be.
Learn how to generate cash first, then hold for wealth.
William Tingle
WilliamGA
I have to add my 2cents. I just bought a house subject to for $10. (Dec 1st) The owner was not behind on payments. She had a bad renter and wanted out. She owes 114,000. The appraisal done 1 year ago was for 140,000. I just sold it tonight for 135,000. Not a bad deal.
Big huge Thank Youto John. Buy his book. Do what it says and you can do it with little or no money. By the way this was my first Subject Deal. I just hope they are all this easy .
Happy Holidays.....
James,
Congratulations! Feels pretty good doesn't it?
James,
Congrats on your deal. I hope they are all that easy for you as well......
......but they won't be. Be prepared.
William Tingle
WilliamGA[ Edited by WilliamGA on Date 12/23/2003 ]
Yeah hoo!!! You go boy!
[addsig]
The most we have ever put into a deal is $4K and that was a preforclosure. We just got a deal with 20k equity and paid $10 (make it leagal) The part where the money comes in is the holding cost. A month or two in holding is not uncommon for our area, but there are deals with no down everywhere. It is always best to have some reserve when you get into any business.
Sire