I have a chance to do a subject 2 property. I already have a buyer ready to purchase, but this is a new property that doesn’t have any equity in it. How can I make money off this deal?
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If you live in a state that doesn’t frown on L/O’s, you can go that route.
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If you don’t mind doing owner financing, you can go that route.
First question; why would you buy a property subject 2 that has no equity? What’s the old saying, you make your profit when you buy the property. Since there is no equity in the property then you can lease the property and hope it appreciates in value, lease/option and find a buyer willing to pay more in the future or how about this; sell it as is with owner financing? You charge more interest on your owner finance note than you are paying on the subject 2 mortgage and make your money on the spread.
you can make money with your up front option money, the monthly cash flow if any and the back end at closing by jacking the price up just (a little).
I agree 71tr. No equity in a property is like going in with no leverage. NO NO, unless interesr rate are way up.