Sub2 Investment Property?
OK, I'm borderline completely clueless on how to structure a sub2 deal and I'm not sure if this even leans toward that strategy so wanted to get some feedback.
I have a seller that wants to get rid of his quadplex and a duplex. On the quadplex he wants to dump it and doesn't care to make any off of it, just get the loans taken care of. Now, i would want to hold this long term, does this eliminate the possability of doing a sub2 deal? Or is there a better way? All the units are vacant and it needs a small amount of rehab. Appreciate any feedback.
I wouldn't hold a sub 2 for 30 years. But, it could certainly be held for a few ... long enough to get the best alternative financing in place.
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Ray,
You could take this property Sub 2 and do the rehab work during the time held, then finance yourself at the new value of the home thus eliminating the seasoning on an equity for your next property...
Scott
Thanks guys, he's agreed to deed it to my partner and I and us cover his payments, now to get the proper paperwork going
Buying John's course next month so the next one goes smoother!
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johns course is great........km
Just bought it today and emailing back and forth with them. I'll figure it out eventually, just want to get these units tied up before someone else snags them
Thanks
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go to the "subject to thats what i do" site with questions i'm "quickez" on the site. good luck......kenmax
the site add. is in the manual.....km
Hey guys, what's Sub2's? And who is John that's selling this course?
HAPPY HOLIDAYS!
John is John Locke and Sub2 is taking a property over subject to the existing finance.
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Ray,
I bought 3 properties from one owner all subject to. A tri-plex, a duplex, and a single family home. The owner and his wife had split up. I got all three for less than 5000. This is what I learned. Make sure that the numbers work. In your post you said that the quad is empty. Why? How long will you need to get it rented? Why is he selling? I studied ever aspect. I knew I would have to evict one tenent and rehab the place. However I knew that I could resell the single family home quickly. I sold it and got 10,000 down and a bump in the payment. Made the 5000 back and had some to rehab the open apt. The duplex is fully rented however they had rented out the place with leases to friends and the rents were a little low. I am stuck with that until June. No biggy but had the info.
My plan is to refi the triplex and duplex this year. I gave myself some wiggle room by placing a clasue in contract so that if I go pass my 2 years I can keep the property sub-to. The seller was able to get a new loan for a house right away so he was cool. Also They had paid down the loans so there was a lot of equity which I plan to cash out when I refi.
I wish you luck please let us know how it goes.
Hey James, I am new to sub2 but own and manage 25 rental units (bought the conventional way). The reason his stuff is vacant is because he is clueless about property management. He is in way over his head, The numbers look good, just want to make sure I do everything right with doing it sub2.
Thanks for your reply and I'll let you guys know how it goes.
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Ray,
Just wanted you to know that your course went out Priority mail and you should have it in a few days.
John (LV)