Sub2 What Is It?
As a highly motivated total novice and first time visitor to this site I have a question. I am sure it will be a "stupid" question to most here but I have always believed that no question is stupid if you don't know.
I live in an area that has a very high appreciation rate compared to national averages and I want to get involved in this industry and take advantage of the trends here.
Here it is. As the name implies Subject-to the deal is subject to something or some condition. What is the condition?
Thanks in advance to those in the know for your response.
meadlee,
Glad to meet you.
Here is a link that will give you the basics of Subject To investing:
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&sid=146
Plus there are many posts and articles to help you along.
John $Cash$ Locke
I've read your article, on what Subject to is, however I have but one question that's nagging at me.
When does the seller get paid, I mean he's handing you the deed for only 1k, but what else is he getting in return?
That's the only aspect of the process I don't get.
Thanks in advance,
PJ
Hi PJ,
You are right, this is an area that some people don’t understand about Subject to investing.
Your seller not only gets the money agreed upon for the deed being $10.00 or $1000.00 but gets something even more important; and that is relief of a burden on his back.
Your seller no longer has to make those monthly payments, draining his bank account, on a house he doesn’t want. He knows he can’t sell it conventionally and there are usually only two other ways to get rid of this thing and that is give it to me or give it back to the bank. At least when he gives it to me, it is not a foreclosure and he can walk away with pride and a few bucks in his pocket.
Best of luck
John (LV)
Ahh, so Subject To is more of a pre-foreclosure technique, gotcha.
"He knows he can’t sell it conventionally and there are usually only two other ways to get rid of this thing and that is give it to me or give it back to the bank."
Why exactly can't he sell it conventionally?
PJ[ Edited by templar on Date 09/02/2003 ]
John,
Thank you for your quick response.
Meadie
Pre-foreclosure or any other reason that the seller NEEDS to sell NOW.
Can’t sell conventionally for any number of reasons including but not limited to time, over pricing of house, second house payment or whatever.
It is the NEED to sell NOW that makes a subject to deal
Best of luck
John (LV)
Thanks for the follow up John, much appreciated.
PJ