Can I Sell A Sub2 Deal In 1-3 Months.
First time posting. I have to say I am amazed with all the info. on this website. It Rocks! I have experience working with pre-foreclosures, but I have been buying them all cash. I like the Sub2 technique because up front cost are minimal. I usually buy rehabbs. Can I buy Sub2 and sell in 1-3 months after repairs. I will be buying John Locke's book, but haven't done so yet.
I wasn't sure if there is maybe a seasoning issue. It seems like most people are holding their properties.
Quote:
On 2003-12-13 14:55, rchapa wrote:
First time posting. I have to say I am amazed with all the info. on this website. It Rocks! I have experience working with pre-foreclosures, but I have been buying them all cash. I like the Sub2 technique because up front cost are minimal. I usually buy rehabbs. Can I buy Sub2 and sell in 1-3 months after repairs. I will be buying John Locke's book, but haven't done so yet.
If you purchase John Locke's Sub2 manual and invest his way...your fix-up costs will be very minimal because your target area will be nice homes in nice areas. Maybe some touch up paint, cleaning, etc...and yes it is highly possible that you could re-sell the property in 1-3 months.
Jonesoe30,
thanks for the reply. will I still be able to get the 30,40,50,000 in equity on those houses?
rchapa,
Glad to meet you.
Yes, you can sell a property in 1-3 months. I don't know how much you are making doing rehabs, but I do know that my average Subject To deal is $25K for me.
Now as far as re habbing the property, when I first started I would paint, repair, etc. Then I found out that what I call "Cash Now" buyers will purchase the property for "as is" which is at the same price as if all the re habb work had been done.
I still do re hab work to every property as such, probably because it bugs me.
You know how when people move out they leave the nails in the walls from where pictures were hanging?
Well I take my pliers and pull out those nails, then spackle the holes. Now I am finished re habbing the property.
You just need to learn how the creative system works.
John $Cash$ Locke
Well, that depends on how much equity is in the property and how well you can negotiate for it. But, basically, there's 3 Profit Centers in Sub2:
1) the Upfront/Downpayment from your Buyer
2) Pack Payment which gives you monthly positive cash flow.
3) Backend Sales Profit that you get when your buyer refinances and cashes you out.
Hey there you go...you heard it from the Master of Sub2 "Mr. John "Cash" Locke himself.
YES...thanks Mr. Locke, I will get your book. Learn, apply, learn apply, learn apply. Wow this is a pattern. I will to one day be wise and noble as you are ****Must Reach Freshman Investor status before posting URL's***ke..
jonesoe30,
Thank you for your kind words. I am only hoping the price of spackle doesn't go up to much, so my profit goes down.
John $Cash$ Locke
I do it. ( sell early )
Think of the big picture grass hopper.
( keep it , chances are the people wont go thru with the purchase ( timeline, no pay's or slow pay's etc )
so they move out, you keep the down payment because IT WAS IN the contract.
They you do it all over again.
( buy the books, I did, it works.)
Jason
[ Edited by joel on Date 12/16/2003 ]
dataattack,
are you talking about selling it owner finance, or selling it outright, selling retail to someone else. It seems to me like your talking about getting T/B get a down payment and if they don't pay on time. get them out and start over again . I was thinking of selling it retail for a lump sum profit. I don't know if Iam ready to be a LL yet. Eventually you have to get some rentals to get a cash flow coming in, but right now Iam trying to get capital in reserves. I do have some investors, but want to be able to fund deals on my own..