1st Property for New Investor

Hello to all,
I’m stuck in a corner right now and need some good sound advice. I’ve been trying to do RE investing since September of last year. I have been reading and reading and looking at all the RE investing discussion boards on learning how to start out. I just don’t know what type of property to start my venture in. I wanted to do rehab (which interest’s me a lot), but after talking to a lot of people, they say go with duplex’s and tri-plex’s to start getting cash flow. But my thing is, I’m trying to work with no money down on a deal so I can start getting capital built up. My credit score is at 662 and I have about $2,000 saved up so far for my investing expenses. How should I start out with what I got? I just want to at least start out the right way. I would appreciate any input on this.

Happy Investing :smileyb:


Hello Kenneth,

Have you looked into “Sub 2”??

If you haven’t, try looking into it. Its a great way to purchase properties with no money out of your pocket! Find a pre-foreclosure and do a sub 2 existing financing…

Good way to make money!!



Can you tell us more about Sub 2? ;D

“Sub 2” is a way to purchase the property “SUB 2” the seller existing mortgage.

for example;

You find a house that is in foreclosure and you contact the owner of the house. You find out they are 2 months behind on their payments. if the deal sounds good to you, you offer to pay they past 2 months to bring their payments current. Than you purchase the property sub 2 their existing mortgage. “Taking over their mortgage” You get the deed in your name, but they’re current lender remains the same!
John “CACH” Locke has a great course on Sub 2. Look him up on either on here or on the net. He’s a very successful RE Investor!!!

Good Luck on whatever you end up doing!!!


so when getting this property in Sub2. The property stay in the originals buyers name…? And the current owner just simply title deed…to “ME” the new buyers…? Could you explain further…? Let me better explain myself…!

I’m looking at buying a property that is valued at

125K After Painting
105K is the sellers current mortgage
with payments of 911 a month…including PITI

He is current on his mortgage however he’s loss his job and he needs to get from under the mortgage. I mean I LIke the house however I dont like it enough to make it my permanent home…! I’d like to pick up the house and possible do a Lease Option with it…!

The problem is the current owner is scared to leave the property in his name for the simple fact that there is no gaurantee other then my word that I’ll make the payments, however I dont want to assume his current mortgage, because by doing this I lock myself out of the possibilities of being lended to in the future by Financial Institutions…! Does that make sense…? I’d like to use my credit to buy what I want for my family…and just pick up his home as a Title Deed and L/O the property…! Maybe I’m asking for to much…!

Can someone reguide me so I can close this deal out…and please walk me through the steps on how to do such deal…!


Sam :slight_smile:

Hey Man,

I came across this very informative SUB 2 deals that was recorded in a chat room…

Check it out, if you have any other questions after you have read it, let me know!!!