Double Sub 2's - How To Work Em
Hey guys. has any of you ever purchased a property sub 2, and then turned around and sold it sub 2? Is this possible? I would think so, but a few questions arise:
1) How do you pull the equity out of the property at the flip?
2) what if the sub buyer wants to refinance down the road?
3)what if original mortgagor doesnt pay the bank?
-Brandon Richardson-
Sub2 is a method for buying property, not selling. I don't think this would be very effective for the very questions that you've already raised.
Buy Sub2, sell on land contract, L/O, or straight out.
Roger
Quote:On 2003-08-25 21:59, richar18 wrote:
Hey guys. has any of you ever purchased a property sub 2, and then turned around and sold it sub 2? Is this possible? I would think so, but a few questions arise:
1) How do you pull the equity out of the property at the flip?
Your buyer gives you a down payment. (You get PCF and a back end payment too.)
Quote:2) what if the sub buyer wants to refinance down the road?
That's the idea, isn't it? He cashes out the original mortgage, you take your profit and go on to the next deal.
Quote:3)what if original mortgagor doesnt pay the bank?
YOU'RE paying the bank. Escrow your buyer's payments and have the escrow company make the actual payment.
John addresses all of this.
Thanks for the replies! I havent read any courses on sub 2, just trying to figure it all out from bits and pieces here and there. this website is a great start though!
-Brandon Richardson-