Sub2 - Have Cash

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If you have the cash to buy property, would you still consider doing Sub2? Cash buyer probably gets better deal from Seller. Your inputs are appreciated.

Sam

Comments(3)

  • LeaseOptionKing23rd November, 2004

    Most sub2 deals only involve paying a token sum anyway. Why tie up cash? Leverage is always better.
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  • kenmax23rd November, 2004

    the need to sell is what motivates most sellers willing to sub2. they are in a position that they are trying to resolve........km

  • mboysen23rd November, 2004

    Cash buyers would generally need to buy at a deep discount to get a reasonable return. The Sub 2 seller typically has little or no equity and can't sell at a steep discount.

    The return on a sub2 deal is nearly infinite because little or no cash is required (there's actually always a little). A cash buyer has a far lesser return, even on a good deal. Sub 2 is a leveraged deal; we're just using the existing debt as leverage. It's beautiful

    Just depends on the situation of the seller (and the buyer).
    [addsig]

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