sub2 deal
I have never done one of these sub2 deals, and I only know what I can pick up from here.
So the other day I sent in a LOI to a seller and I threw on there option C which basically said that if they did a cash out refi, I would purchase it sub2 at that price.
Well they are interested in that idea but had some questions. I told them to fax them over instead of calling so I could run it by my attorney. Well I don't really have an attorney, I just wanted time to ask questions here.
So here are my 2 questions...
Is that an acceptable use of sub2, or am I off base?
Is Johns Sub2 Book an Ebook we can download? I am concerned I may need it sooner then I had thought!
drifter,
Sounds like a Subject To deal to me, you should pick this property up for 'U-Haul' money.
I send all my books out priority mail, if you are in a jackpot on this one I can overnight it. Plus give me your phone number and I will walk you through the deal.
You probably read in a post that Joel the owner of this site just did his first Subject To deal, we discussed it before he talked with the seller, so you know I am accessable, whether it is an owner of a site or to someone who just needs help.
Let me know, after all not doing the deal is only money.
John $Cash$ Locke
I think this is interesting, correct me if I'm wrong.
If the client needs cash have them refi to cash them out then take over at the refi-price?
As long as the numbers support it that is a ballsy but very creative move. I have passed on deals were I could have used that move and the owner would have went for it.
You also get so many freebies when this happens..
Free apraisel, 1 mortgage, fresh new loan and a grace period to take it over, the owners happy cause they got cash and you to take over the payments. It's a win win.
With that we should even get a 3-5 year commit which we could pull that much more cash flow from the property....
Thanks for posting... This is great......
what kind of owner would have the time to refi and still be interested in doing subject to?
Usually people who are motivated are time motivated too. I think if you can get it then you are on to somthing good..if with the new mortgage the numbers work. Are the people going to refi with no closing costs at a higher interest rate? That means less margin for the investor.
Even if they refi, it would be better than paying an agent and I suppose it would be better for them.
I think the deal is rare, but great!
Keep updates comming, I am interested in what happens.
as many here know now, I rent on college campus - 90% of rentals are done in August - so they want to sell, and there are not a lot of buyers in the winter (can't raise rent or get renters) So the house is just sitting there - that is their motivation and time to refi for me.
I would guess the same might be true for any other property that has been sitting a while - of a FSBO - a refi is cheaper and possible faster then a realtor - just some thought - I am new at this too
Hi drifter,
$Cash$ is currently working on a project, which is why he is not on the board right now.
As you know he will help walk you through a Sub 2 deal as part of the "Subject To" training manual and program.
He helped out Joel on his, and I know he will help you on yours. Just give him a call.
Best of luck
John (LV)