Sub-2 exit strategy

General Real Estate Investing
1

Hello all,

I am a bit confused on the exist strategy from Sub-2 deals and hope that someone can clarify.

From reading the forum, my understanding is that investor can purchase a property with Sub-2 even if the existing financing is not assumable due to DOS clause, is that correct?

The exit strategy for Sub-2 purchase is:

  1. Sell the property on better terms. Meaning that eventually the end buyer will be able to cash you out from the Sub-2 mortgage and you packet profit?
  2. Can investor re-fi the property once it is deeded to him?

Thank you for your help.

2
  1. there’s several exits for sub2’s but I think that the most popular one is lease options but read a littlle more.
  2. you are right about being able to refi after you have the deed, you just have to shop around for lenders if you haven’t had the property for a period of time due to seasoning issues.

just read and learn from here cause I’m still learning myself.