Short Sale Vs. Sub-to...
Correct me if I'm wrong, but it seems like the only advantage over doing a short sale vs. a sub-to deal is when there is hardly any equity in the property. Is that a correct assessment?
The reason being is this- if a property has a ton of equity, chances are slim that the bank will allow you to get the property for less than what is owed, which is the whole point of a SS right. That is, unless the property is a complete dump of course.
Someone fill me in please.
Thanks
[addsig]
You are correct. If it makes sense to take it sub2, then that is what you should do. If you have a property with a payoff of 100K and it is worth 250K, you should not attempt to short sale it. Take it sub2 and bring the mortgage current.
Thanks for the reply bnorton
So in your opinion are there more opportunities and profit potentential in SS or Sub-to's??
[addsig]
Short sales and sub2s are different techniques that should be used in different circumstances.
Get out there, find some modivated sellers, then work to solve their problem!
I couldn't agree with MyFrogger any more. The real key to success is to find someone who needs your help. Focus on the people, not the real estate or acquisition technique. More than once, I have come across someone who needed my help, and I had my exit strategies lined up, but while I knew what the best acquisition strategy was, I didn't know how to do it. When that happened, I either hooked up with someone who knew how to do what I wanted to do, or I made a frantic call to your friendly national speaker who specialized in the strategy to get a course sent as quickly as possible. -- Preferably yesterday!
But focusing on the people was key!
I understand SS is for people who are going into F/C.
How do find people that are qualified for sub2, specific listing, characteristics, marketing techniques?
You can use Sub2 for the folks who are going into foreclosure as well. If there is a foreclosure pending, but there is lots of equity, you would probably be better using Sub2 to acquire. You might even be able to help the seller walk away with money too depending on the deal.
SS is used when you need to create equity, and the seller cannot walk away with sales proceeds.