L/O Or Subject To? - What's Better?
I have an opportunity to purchase a property with no equity, for zero down either via a subject to purchase or a lease option.
I understand all of the differences - I'm just trying to figure out - are there circumstances that would favor one method over the other? My exit strategy is to place a T/B into the property either way.
Thanks folks - for all of your help!
who do you like best gw or kerry. its a matter of opinion or which presents itself as the best deal. the one that is more agreeable with the seller to make the best deal for you.....don't know.......find out what the seller needs......for me its which ever no puts me in the best position in the eyes of the seller........km
It is hands down the best to take a propety sub2 in my opinion. You grabbed the deed and the seller is out of the situation for life. No need to come back years down the line to have them execute a deed (or even if you're smart and have a deed held in escrow, have to deal with the attorney who can still cause you problems).
I would definatly, definatly take the property sub2.
Maybe others have arguments against sub2 but I can't think of a one. The only possible argument is that it might be easier to convince sellers of a lease option maybe?? Thats all I can think of.
It is always better to get the Deed (except for maybe in North Carolina--LOL), because you then get the tax benefits, don't have to do a collapsed closing, and can avoid future problems with the Seller; however, I can use NLP to get a Seller to agree to a L/O while only marginally motivated, when they would never sign over the Deed. If someone wants to give you the Deed to their house, you should know how to do it and do it safely, but a L/O is a good second choice (albeit riskier).
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i totally agree lok i do the same.....km
what's an NLP?
Boy, I'm glad you asked !! I wish you had also asked about a collapsed closing!!I've done about 15 sub2s but I never heard of either one of those things! Course I'm just an old uneducated poreboy from the country.
Collapsed Closing: Almost like a double closing, but avoids two separate sets of closing costs (usually found only in attorney closing states). You will still have some costs--like the recording of your Deed and a transfer tax/fee.
NLP: Neuro-Linguistic Programing, which encompasses many different motivation and negotiation techniques.
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