can you assign a subto deal to an investor? if not, how can you buy a property in order to assign? my credit is no good because of my spouse, so i can not go to the bank. all help appreciated.
:smile
Use a Lease Option Assignment sometimes called a Cooperative Assignment, much easier. Herbster
If you haven’t recorded the paperwork yet you can collect the assignment fee, and put the two parties together, canceling your deal with the original seller.
I’d be very careful of this one. If you tell sellers that you will take over their payments, assign the property to another investor, and then that investor fails to make payments, then you just broke your promise to the sellers by assigning their trust to someone they don’t know. If you do assign your “subject to” deals, the proper thing to do is disclose this to the sellers you bought the houses from and let them know that you will no longer be responsible for making their payments, and then see how they react. If the investors you assign your “subject to” deals default on their payments, you’ll be brought back into the picture since yours is the face the sellers know, not those of your assignees.
When you buy a property “subject to”, you are essentially making a promise to the seller that you will resume his/her mortgage loan payments. If you have no intent on doing so or don’t think you can make payments, don’t even think about buying properties “subject to”. Despite the disclosures and other documentation, you could very well be brought up on charges of equity skimming if you don’t make payments, which means jail time as well as more anti-investor legislation. Lawmakers are targeting our entire industry because of a few scumbags who do things like default on their payment obligations.
In one of my target markets, Augusta/Martinez/Evans, GA, a “subject to” investor recently defaulted on payments in a big way. She was overleveraging her private lenders and putting them in as high as 131% CLTV junior lien positions and then defaulted on all of her “subject to” purchases, over 40 houses total. This idiot lost about $10.6 million in real estate to foreclosure, including her own $567,000 residence, and $3.7 million in her private lenders’ money. All because she got greedy. Not only will she be facing equity skimming charges but also charges for selling securities (by selling junior lien security deeds to her private lenders) without a license. It’s fools like this who make it a lot harder for the ethical investors in my area to do business by creative means.
OKAY
What if in this deal you were to get the property sub2 okay
Then were to rent it out for the loan payments plus a bit more
And as soon as you can find a refi company that would do the refi with the shortest seasonning get it done Then yes it is all in your name but
The wat things are now it would more then likely be a lower rate thus increasing your cash flow
JUST A THOUGHT
That’s a lot of “what if’s”. If you have to rely on that many things to go well for this deal to work, it’s not a good deal, IMHO.
There are too many good deals out there to get sub-to that will cash flow right away to worry about this one. The same kind of overly-optimistic view is what got our investor here in her troubles. Best to let this deal go and hunt some good ones.
HEY
I agree i would let it go as well
But it was just a thought if you were really in love with the place or deal that this may be a way
But this is business and you should never get real close to your properties