Directly Assigning Sub2
Is this a good idea for a a new investor to get out of the middle and just make the up front profit? If so how can we assure that our buyer will refi and the original note holder will not get stuck?
Thanks
Bri
Why are you throwing away your back-end profit? What downside do you have sticking around tell see the option out?
Perhaps if the buyer fails to exercise option and trashes the house, you would have to evict rehab and find another T/B which I believe might be an issue if You were cash poor in the begining..Just a thought
Bri
The seller is relying on YOU to make those payments. I personally feel that I have an obligation to stay in the middle and protect the seller.
How would you feel if you sold a seller on doing a sub2, you assigned it to someone else and that someone defaulted on the mortgage?
You cna't be assured that your buyer will do anything.
AS for your sub2 contract, did you write it so it could be assigned to another? If so, then it is totally up to you, and your personal preference / circumstances.
64 I was just thinking that if there were a way to assign the sub2 to a new buyer but had a contract that also protected the original seller it would be a win win win situation u get an upfront assignment fee seeler got rid of their house and buyer got a new home. I would assume though without the new buyer signing the deed back over to the original owner that even a contract could not protect the original note holder..I guess this just isn't doable.
Bri
As with any investment there is RISK involved. The what-if’s will be alive in any transaction. For example: What if you get hit by a bus tomorrow, what happens to the subject-To deal on the table? Do not get distracted, stay focused, solve the sellers problem, and remember to make a profit.
Good luck,
Eric & Rosa
[addsig]
Brill,
You can do what it is that you are trying to do. I just don't see an advantage to you getting out of the middle. If you assign it and the deal goes south the sellers will more than likely come to you no matter what. It's just not a position that I would want to be in. You are still on the hook but completely out of control. You wouldn't know that anything was wrong until you were notified of a lawsuit. You can mitigate the damages by staying in the middle and in control of the seller and the buyer.
Stay in the middle and make some serious bucks.