hello everyone. does anyone agree that the sub 2 might be an easier way for a young guy with little money and horrible credit to get started in this business. The way I am planning, if I can get a property under sub 2 contract, I can turn around and sell the contract till I build enough capital to buy and hold or possibly rent.
Then my other question is how long typically can I put in the contract as to when I should buy the property in full (considering I would love to get rid of the contract in less than 30 days).
Also, how much money and my credit would be involved in a typical sub 2 deal?
I believe you have sub 2 confused a bit. Sub 2 is where you buy a property and the seller leaves the loan in their name. You actually buy and close and own the property.
I believe you are asking about wholesaling where you get the property under contract and then try to resell to another investor or even a homeowner. Most contract terms are close in 30 days. You may be able to get an extension if you are willing to put up more earnest money. I just extended a contract but for only 10 days with an additional $500 at risk. It is kind of like poker. I already have $5000 at risk with the appraisal, structural report, environmental report, inspector, survey and the original $500 earnest money. No big deal for another $500 when the pot is already over $5K.
your right … actually I think I confused it also with lease to own deals.
so maybe I should rephrase my question to. I guess what I wanted to ask was if it were easier to start of looking into rent to own properties and then assign the contract to someone else just toget enough capital to go further?