Hello again,
Sorry to post the same question again, but I got no response on the last one so I will restructure my question.
Is it a bad idea to buy and hold sub. 2 properties for the long run (10 yrs. or better) if so, what are the risks?
I know I cannot be the only one here who wants to build a portfolio of sub2 properties for rentals
Thanks…
When I close on a subject to, I always inform the seller that it may run the entire length of the loan but my plan is to sell the home and remove their loan obligation as quickly as possible. I offer no guarantees.
However, I have had sellers call me the very next month wanting to know when their loan will be paid off and I have had sellers who have never called me after several years. From my experience and from what other investors have told me, the window to get the homes sold seems to be around 3 years before the sellers start pestering you. I just had a seller after one year fax the closing documents to the lender because he wanted the loan paid off. He tried to force us to refinance the home. We had to find our buyer a new home and the sellers house is in foreclosure. I have heard from other investors that older couples seem to be less concerned where younger couples start looking for a home to buy much quicker after after the sale.
While I think it’s a good strategy for you, I think the sellers will become a problem.
The sooner you can refi out the better ! As the sellers want in all most all deals out asap clean with no problems
Once you have the deed you can get refied out in 12 months in most cases
WHY is this? (ability to refinance). this brings up a question: if you have marginal credit, is it a good idea to build a relationship with a bank that KNOWS what you are doing (paying the note for somebody else) or even getting a servicing company to handle the payments so that they can show your payment history?
The problem is that I already have 17 mortgages in my name and the banks won’t even let me in their parking lots let alone give me another mortgage… LOL My credit is excelent but it seems that creative financing is the only way I am going to continue growing my RE portfolio.
Diego J… Thank you much. Very informative response.
Glad to help if I did.
We have similiar stories. The mortgage companies cut me off after 10 and my local bank will only refi my current properties every 5 years. I started Subject To investing several years ago, but lately have gone to Short Sales.
My challenge right now would be my Subject To Buyers who should be refinancing can’t get refinanced or the homes are not appraising for sales amount.
The market is great depending on where you stand. The house across the street from my personal residence just went under contract for half the listing price from last year. This is the nicest home in our subdivision. Half price. My sister in law put it under contract today!
Deals are out there and the millionaires in 2030 are being made today.
Hey Diego J,
Congrats. to your sister. I am with you about the future millionaires. The way I see it is buy everything you can and don’t worry about the market dropping because only one of two things are going to happen. 1. we will get very rich in the future or 2. the whole market completely melts down and then we’re ALL fuc…d together and I t won’t matter…