My partner received a call from a friend who knows of a home in distress…Regarding sub2 deals what is the best way to structure the deal so that the people in distress walk away feeling they got the best possible treatment…We have not done sub2’s before so we are new to this aspect but, sounds like we offer to take over the payments and do a lease option to buy (keeps the mortgage company from initiating the due on sales clause) and then we do a double closing later before the lease with option to buy expires…Can anyone tell me if this sounds correct???

Any input to help guide us through this deal would be greatly appreciated…

thanks!!! 8)


I will answer part of your question, a Lease/Option also triggers the Due On Sale should the lender care to do so, as an equity interest has in the property transfered.

John $Cash$ Locke


I’m always amazed at how many people will walk into a deal they think they understand. No offense, but you have to know what you’re doing; especially when you’re asking someone to trust you to make their payments. It cannot be encapsulated into a message thread.

I would recommed you study the technique with a course, or you enlist one of the gurus to do the deal with you. You might not make as much, but you will be working with a pro and learn something that will make you money later.

I’d just hate to see you get “some” of the information you need and then find yourself in trouble. Once you’re in the middle of it, it may be too late to help you.

Just my 2 cents.

Thanks for the advice…where can I find info on the sub2’s and how they work or a course even…???


This will get you started on basic understanding of Subject To deals.

John $Cash$ Locke

That’s what you look like? I thought you were actually Merlin for the past year.

Thanks John!..I have found some programs which seem a bit steep…I read your article & it is enlighting…are you familiar with this process in AZ…I mean would it work the same…


Let’s see am I famliar with Subject To in Arizona, only did a couple of hundred deals there, so you could say I am famliar with doing deals there.

Yes, it works in Arizona, even works in Dayton, Ohio went there and did about 10 deals cause someone told me it would not work there.

John $Cash$ Locke


Darn I thought that avatar was Mose’s separating the fact from fiction posts.

John $Cash$ Locke


Just thought of something…would it be wise to do sub2’s under your entities name for legal purposes ???..Seems like this would be wise…

Argent 8)


Yes, very wise.

John $Cash$ Locke