Can someone explain the basics of Subject to financing? How do you propose this to a seller? Where do you get the contract for this? Can someone go through the basics for me. What are the costs involved? Do you get a inspection and appraisal on the home? Can someone just walk me through a basic deal so I know where to start. Thanks
Actually, the premise is simple: Get the deed to the property, his coupon book, then start making the payments. But the devil is in the details.
On my first deal, I jumped in with little information. I did a dumb thing which wound up costing me $3,000. How I regret not spending a couple of hundred bucks on a Sub2 course.
My advice is always – buy a Sub2 course and know the details of what you are going.
Wanting to be a Sub 2 investor is great but first you need to understand the exit strategies.
Then understand the difference between equity Sub 2 and Non equity sub 2…
Then you need to practice the two basic presentations…
If you learn these three items you will know more than a lot of investors…
Good Luck.
Michael Quarles
Hey Mike
Actually sub2 is a short term goal for me. I have access to millionaire investors in my city and my family owns a construction/ concrete swimming pool company. So I just want to do enough of them to build capital so I have more to bring to the table when approaching my investors. All my personal money is going into my own business right now and my company is not seasoned long enough to get big LOCs. Can you explain some basic exit strategies and the difference between the equity and non-equity sub 2? I ask because I noticed that you are someone on here that takes the time to really answer peoples’ questions in depth. Can you explain what the warranty deed is? How do you protect the equity you purchased? What course do you recommend for sub2.
gerald(tx)
O.K. now you got us curious. What mistake did you make on your first Sub2, that cost you $3,000?
I know alot of us newbies would be grateful for your story, so we don’t make the same mistake.
Thanx
Girldog,
My mistake was I didn’t know how to handle the insurance. I knew the policy had just been renewed, so I thought I would just wait til next year’s expiration to get my own policy. Little did I know the owner went to his agent and got a refund.
Nearly two years later, the mortgage co. says they have no evidence of the house being insured during that year so they were debiting the escrow account $3000 for “forced insurance” retroactively.
I argued with many letters and phone calls that if they would have notified me then, I would have bought a $950 policy on my own. I wanted to fight it, but my T/B was cashing me out at that time. So I closed with my backend check being $3000 lighter than it should have been.
I got an expensive lesson in how to handle the insurance. That’s why I say get a course, or go to a weekend seminar. Know what you are doing.
I can but it would take a couple hundred pages…
As for courses to recommend there are moderators here who have writen sub 2 courses and others as well… Youre asking a queston that is diffucult to answer without violating the rules…
Good Luck
Michael