Subject 2 Newbie Question
When doing Subject to - what is your main objective, besides making some cash?? I understand the very basic principle of purchasing a property Subject-To the mortgage on the house... So what does one do with the house after you have ownership of it??
Do most investors Lease Optioning it?
Do investors sell it?
Can an investor "flip" the deal?
I realize that the sub2 investor is focus on people with little or no equity so I wonder about sub2 investor's attitude towards "making money when you buy, not when you sell"
Please shed some light on this subject... I ordered John Locke manual and I am totally stoked and excited to get using the techniques, as I have heard many good things about him/his work/his manual!!!
Is everybody still hungover from the St. Patrick's Day Week??? I understand... Hopefully I'll get some responses!!
Peace!
Matt
Matt,
First, congrats on your course purchase, you have good materials, by someone who backs them up.
Now, I've not read John's entire course, just bits and pieces here and there.
I highly doubt though, that he teaches you to buy with no equity.
There was one thing you said that caught my eye more than the rest of your post however.
It was:
"I realize that the sub2 investor is focus on people with little or no equity so I wonder about sub2 investor's attitude towards "making money when you buy, not when you sell" "
This is sadly what MANY people think due to some really horrible (my opinion) mainstream sub2 courses out there advocating that.
Sure, you can buy houses all day long with no equity.
Sellers in that pickle are often motivated.
My take.........WHY buy someone elses problem, unless you can solve it and get paid and paid WELL.
I buy most of my houses sub2, and my average LTV for purchase is under 70%.
Yes, I make my money when I buy.
I sell most with L/O, because I'm lazy and that is easy.
I also sell some for cash, conventional, and even the occassional seller financing, with enough down.
Every house I buy has a certain exit strategy planned for it........however, plans don't ALWAYS work out.
The thing I teach and advocate is to buy houses, no matter what method you use to purchase, that can be sold immediately, for cash, and a profit in your pocket.
How you exit, is up to you, but having this choice, makes the others much easier to accomplish as well.
So No Matt, not all sub2 investors buy with little equity.............only those who won't be here for long without changing that way of thinking.
Take care and HTH,
Jim FL
[addsig]