Sub To...for Own Use (owner Occupied)
This may be a crazy question, but are there ever situations where I may be looking for a new home (to move into) and can do a sub to deal for a homeowner simply looking for debt relief? Meaning, not necessarily having to pay a ton of payments in arrears or compensating the homeowner much. Or possibly an investor has a property that he cannot unload so he may turn around and do a sub to for someone else to take over? Just curious. Any thoughts?
Thanks in advance.
Brian
How is this different from a land contract or a lease option?
Just curious. I've seen the sub - to term bandied about and i am curious in how it differs?
From my understanding, the lease option is still an option, with a designated portion of the rent going towards the purchase if and when that decision is made to purchase. Subject to is a bit different in that the loan stays in the same name but the title does not. It is immediate ownership of the home....not leasing it to try and own it later. I think this is right.
I was just curious as to whether there are deals out there that people or investors simply want to get out from under.
Hope this helps.
Brian
I'm still learning, but I don't see why this can't be done. (investor part not sure of, but)
My thinking (please correct me if I'm wrong)
1.) Buy Sub-To, like normal with 2 yrs to refi.
2.) with the 2 years, simply refi in your name.
The nice benefit here is, if the DOS is triggered, its yours anyway, just get the loan and your done. (make sure you qualify for the loan in case something happens to trigger the DOS of course)
Dave
This is not a crazy question at all. You start marketing and you will find a subject 2 deal which you can get for cheap and use as your primary residence. It's a great way to become a home owner with a little or nocash investment.
My gf and I live in a house currently that is a great starter home in a good location. I feel like it would be a great rental property...3/2.5, 1400 sq feet, current note $905, new community (less than 1 year old) fenced backyard, etc. We thought about trying to find a subject to deal that we could move into with little or no money and then start renting out the house we are in now. I also wanted to start looking for a rehab property for a fix and flip, possibly with a HML. That is our 6-8 month goal. Next year's goals are MUCH greater...haha..one year at a time. What do you guys think?
BTW, Sammyvegas, what is the best way to advertise that you are looking for a subject to deal in a specific area with a specific price range, and no money out of pocket?
Thanks guys!
Brian[ Edited by suntzu18 on Date 02/24/2004 ]