Sub2-Terra Master System Using a 2nd Lien and Deed in Lieu

General Real Estate Investing
1

Hello:
I’m a first-time poster. I am interested in hearing from D/FW RE investors that use Ken Plunkett/Maurice Dubois/Bryan Dunklin(attorney) 2nd lien & Deed in Lieu of method for acquiring Sub - To Properties. A seminar teaching this method was presented in Dallas about 6 years ago.

Are any of you using this system with success? Or have you found it too complex or cumbersome. In theory it sounds like an excellent and provocative method and the gentlemen authoring this method appeared to be very clear-thinking . Of course nothing is without downsides and I would like to hear those as well.

If I have posted about something that nobody has a clue about it, please accept my apologies.

Thanks…Mike

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Mike,
Thanks for joining us. Of the folks you mentioned, Dunklin is the only familiar name, but I have never met him.

Going in through the backdoor (2nd lien) for Sub2 is nothing new. I haven’t taken one that way because it just wasn’t necessary.

As far as I know, the only risk is having the transaction deemed usurious if the entire equity gain gets reclassified as interest on the “loan”. In fact, I think this acquistion technique was actually outlawed in Cali as part of the “foreclosure consultant” overhaul they put in place some time ago.

For me, that risk was never worth it, but I’d be interested in hearing experiences from others.