Getting Started in Sub2

General Real Estate Investing
1

For those of you who invest sub2,

How did you get started? Did you take a course, or just do a deal, or have a mentor/coach, etc?

Do you invest utilizing the sub2 method exclusively, or is it just on of many techniques that you use?

Thanks in advance for the info,
Uncle D

2

I read a ton on this site, I also got John $cash$ Locke’s course. The main teacher was just going out and finding a deal and asking questions on here and other forums. I do recommend John’s course, he is also a stand up guy and is there to really help. Just like everyone on this forum. I don’t think anyone needs to pay for a mentor, take that money and invest it into finding deals.

The methods I use are sub2, lease options, but mostly I do rehabs. I look at ALL deals that come to me, if it’s not a rehab deal I look at doing a sub2, if that doesn’t work I look to lease option it. I try to make all leads into a deal somehow, if the seller isn’t creative I move on. Remember all deals aren’t deals.

Good luck

3

John,
Thanks for your reply and the info. Do you do sandwich lease options? Or are you buying via sub2 or cash and then doing a lease option to exit?

Uncle D

4

I’ve done sandwich deals. If the numbers are right and the homeowner is willing, they are a great way to invest. However, these days I prefer Cooperative Assignments. Much easier to get the deal, and much less involvement it in, too.

5

Uncle D,

I, too, recomend John Locke’s Course. I have it and it is very good.

Be sure and also get Jim Mitchell’s course. This guy is an awesome investor/writer.

Having at least two courses has really helped me clarify several issues. I have several other courses, but I am here to tell you, there is no better value for your money than the above.

I have been studying for the last several months and have marketing materials ordered and will officially launch my new sub2 biz in about a week.

Ted_IL

6

Thanks Ted,
How about William Tingles course; has anybody here study it?

Thanks,
Uncle D

7

I highly recommend Tingle’s course! Of course, Cash and Jim’s courses are good too. It would be hard to go wrong with any of these three. Over 90% of the methodology is the same in all, just a little different approach on minor issues.

The important thing is you have a course. Dummy me, my first deal was done without one. It cost me a $3k lesson. That’s why it disturbs me when some chinchy newbie posts “just send me some forms.”

8

I have never done Sandwich leases. When I buy sub2 I usually do a lease option as an exit or I rehab and sell. I have kept one as a rental only because the mortgage will be paid off in 4 YEARS, not a misprint, I did say 4 years. So why sell this one, right?
My main method of investing right now is rehabs. BUT I look at EVERY DEAL and try to find a solution for the seller (and a deal for me), either I purchase it with cash (only if there is enough equity), a sub2, Lease option or I try to get really creative and buy the house on a 6-12 month note if the seller doesn’t want to wait for their money. In that 6-12 months I rehab and sell.

VERY VERY good course as well

9

John/Gerald,
I can’t thank y’all enough for your advice/input.
As for Tingles course, do you know if he is as accessible for help as Locke is?

Thanks again,

Uncle D

10

I’m not sure. I know he posts here www.flippinghomes.com and here www.maconreia.com and here www.sub2deals.com go there and ask him.

They are both incredible people.

Good luck

11

keep us up to date ted

12

AJ290,

Could you please explain “Cooperative Assignments”? I’ve never heard this term before.

Thanks in advance for your help.

13

The Cooperative Assignment is when you put together a lease purchase deal with the homeowner, giving the homeowner full retail terms, then you assign the deal to a tenant/buyer. You keep the option money you collect as your assignment fee. They are an easy way to collect $3K to $15K per assignment.
They are a topic of frequent discussion over at The Naked Investor.

14

Just make sure youre not breaking your states real estate laws…

15

Man, I heard those “Cooperative Assignments” are iffy, at best, and finding a tenant/buyer is damn near impossible in this market.

I would be VERY cautious. :shocked