Are All Sub2 Deals Based On 'misery'?
Please don't take my question the wrong way. Just bear with me.
It seems most proponents of the Sub2 are doing deals where the property is on the verge of foreclosure or, where the seller is in other big financial trouble.
In other words, the investor is helping people out of a miserable situation. (Which is great, BTW)
So are there any instances where Sub2 deals work well when the seller is NOT under duress?
Thanks for any input.
-JQ
JQ,
I have bought well over 100 properties sub2 and I have seen sellers in many different situations.
Some were desperate and some weren't, some were financially distressed and others weren't. Some had credit that was shot, some had 700 ficos. What they all had in common was motivation to sell and trust in me that I could take care of their problem.
Building rapport with your seller is the biggest thing you can do to get them to give you that deed. Not all sellers have to have a foreclosure notice tacked on their door before they will consider your sub2 offer.
Sub2 is just one of many possible solutions to offer your seller. Presented properly, it appears to be just as normal, everyday business as any other kind of sale, and it is.
I have written an article that may help explain this to you a little better as to what types of sellers will agree to a sub2 deals. It is located here:
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&sid=295
No, sellers don't have to be desperate. They just have to need a product (sub2)that you offer. Demonstrate it, show how it will solve their problems and satisfy their needs and you will sell the product.
William Tingle
WilliamGA
WT:
Great reply, thanks.
I'll check out your article; I'm sure it's great too.
Best-
J
In my subto deal, the guy just didn't want to make two mortgage payments while he already moved into the other property.
And shoot, who could blame him. I know I sure wouldn't want to pay both.
Most of the deals we have taken lately hsve been from those who have bought another house and don't want the worry of the second. Most of ours are not in bad situations. Moving up, transfer, divorce (ok this one is bad)
For the most part these people are excited we could help. It makes you feel good just to help. Look at the good side not the negative.
Sire
Thanks to all.
I'm a succesful media entrepreneur and new to the RE investment game and really enjoy the minutiae of the Sub2 deals. Very clever.
And I do agree: In all sales situations (such as convincing a seller that a Sub2 is win-win) accentuating the positive is the best route.
So here's another question for you active Sub2 players:
Do you go through a reator to find deals?
Thanks-
JQ
johnqreplies,
Glad to meet you.
In the 500+ subject to deals I have done, 90% of the sellers were not behind in payments or in pre-foreclosure they needed out for other reasons, job transfer, making payments on two properties, etc.
If you are looking for misery you will find it, if you are looking for a plan that helps people when they need help then that's what I do no matter what the situation.
I do not like making up behind payments for the seller, normally these people are in self denial and have been advised by their attorney to stay in the house until the Sheriff comes. Then at the last minute some of them decide maybe they can get some money out of their property. I do not market for these type of sellers.
I have never used a Realtor to buy a property, however I have sold to credit challenged real estate agents from time to time.
John $Cash$ Locke
And Realtors will often tell us that taking properties subject to the existing financing is illegal. So, I don't look to them for sub2 deals. Instead, I run ads in my local newspaper, and motivated sellers call me.