Can an Investor Tap into the Equity when getting a Deed Sub2?

What I mean by “tap into the equity” is regarding, something similar to equity dispersements?

I was asked this, by a seller on a sub2 deal I was working on and wasn’t too sure.

I told him that to me this would not seem feasible, due to the fact that the Investor on the Deed, did not have the mortgage loan in his name.

Was that true? If an Investor could tap into the equity, then how could an owner be protected.

Hope that wasn’t a dumb question, but had to ask…


Once the owner signs off on the deed and transfers it to the investor the investor owns the property and the seller retains the mortgage in his name.

So the investor can do what he wants with the property as he owns it, of course Subject To the existing mortgage. I doubt the investor could place a second on the property as lenders would pick up on who’s name the mortgage is in.

It seems your seller needs to be aware of the fact that he will no longer own the property, as the question asked sounds like he was not made aware of this fact, if he was questioning tapping into equity.

John $Cash$ Locke

Thanks for your answer John $CASH$ Locke. I was kind of thinking the same.

I definitey made him aware that he would not be owning the home.

I think he was just being cautious. :shocked He wasn’t too familiar with the Sub2 Process and he had a course in front of him, trying to grill me with all these questions.

It was pretty funny, because everything I was telling him was right along with his little course, so I guess he realized I wasn’t trying to get over on him. I just told him straight up what could be done…

We’ll see how it goes, he is supposed to get back to me. Thanks Again…Oh and how do I get your course. I was reading some of your articles last night. That Ping Pong Article was priceless. LOL :bobble