Is Sub2 The Same As "owner Financing" Or "wrap"?
Isn't Sub2 to same as "owner financing" or "wrap" or "contract for deed", except I don't get the deed until I have made all my payments?
If this is so, why wouldn't I ask for owner financing, and then lease option to a tenant/buyer? It seems this scenario would make the seller more comfortable, but it's better than me lease-optioning from the seller because I'll have an equitable interest in the property.
Any thoughts?
You are correct about "Sub2" being a form of owner financing. It isn't the same as "Contract For Deed or a "Wrap" either. The "except I don't get the deed until I have made all my payments?" in your statement is not a minor issue, "It is the difference."
Nothing would stop you from acquiring a property "Sub2" and Lease Optioning it to your buyer.
Some feel that acquiring via "Sub2" and selling via "CFD" or "Wrap" puts you in a more advantageous position still. That way you have control of the deed until the process is complete, and the seller's financing is gone. That way you're not making promises and then trusting others to keep your word.
Good luck,
Jeff
Sub2 is not the same as owner financing. What you are doing is taking possession of the property subject to all liens, loans, and any other encumberances associated with the property. You will then be responsible for the property to include making payments and paying off all of those liens and etc.
You will record the deed in the name of the trust that you will control.
Good luck
Rich StS