Sub To Vs. L/O Investing
I hope some people can help me out here. What do you experienced investors see as the Pros and Cons of Sub To vs. L/O type of investing? From my short experience it seems that sellers are more apt to take to the L/O as they don't lose ownership (deed) while still being responsible for the loan. On the other hand with Sub To when you sell to a Tenant/Buyer you can get more down. These are the 2 types of investing that I am interested in, but want to know the experiences of others. If you had the choice everything being equal which way would you choose to invest?
Most of the time when a seller is willing to entertain the idea of having someone that they didn't screen, and they don't know move into their house and possibly trashing it, at the very least not taking care of it like they would. it isn't a major obstacle getting them to entertain the idea of a Subject 2 Deal. They've met with you, you've been straight with them and told it like it is. They respect you for this, and you've gained their trust.
You have a solution for their problem, and they will thank you for making their problem go away. They have limited options. They've pre-qualified themselves by calling you in the first place.
Yes, after you have gained control of a property, you can make money with a lease option to your tenant/buyer for the reasons you've stated.
Buy using Sub2, Sell using Lease Options.
Good Luck,
Jeff
Why not Buy " L/O" using existing seller financing and doing L/O to T/B ?
Tnx,
Tom
[addsig]
Tom,
You can do it this way, but there are some drawbacks to investing this way. The property owner is still the title holder on the property, and they could cloud the title making it difficult for you to deliver clear title to your tenent/buyer. An IRS Lien would be an example of this without thinking too hard. If you can get the property owner un-involved in the property, your position is much stronger. If you can live with that, then go for it.
Good luck,
Jeff
Tom,
I do not buy via L/O anymore. The seller will often change their mind when you solve their problem and their situation improves. Getting them to the closing table is often difficult and really puts you in a weak position. Subject to is the way to go!! If a seller will L/O, they will subject to with a little extra push.
Beachboy