I’ve done Sub2’s for a while now and I enjoy them for their flexibilities in how you do them and ways to profit from them. I personally like to place Lease/Option tenants. I’ve got friends that like to rehab them and resell retail when the numbers work and others have long term renters in them, there really is so much you could do.
So what is your favorite exit strategy when you buy Sub2
My Sub2 deals are brought to me by Mortgage Brokers, Realtors and bird dogs/wholesalers.
Most of the time, the homeowners are behind on payments. You’ve got to take into account the cost to bring it current when deciding if it’s a decent deal. I’m usually able to get those costs back once I place a tenant/buyer in there but it all depends.
I’ve only been paid to take over the payments a few times. I think those that say it happens all the time are exaggerating just a little bit. The way I get them to pay me in essence is getting the deed but having the seller make the next two payments giving me the time to clean it up and/or place a tenant/buyer.
It’s not hard to show a Realtor how Sub2’s can help their clients once you tell them they’re still receiving commission :rolleyes b/c that’s all most agents care about anyways. I show them how they’re literally saving their clients thousands of dollars as opposed to ‘getting the highest’ price for their home.