I am new to this forum and have been looking at several house in Louisiana. I want to go into the subject2 dealings but was wondering if there is a minimum amount of time one has to hold on to the property or can one just sell right away once the deed is transfered? Thanks in advance everyone.
A Louisana boy at my own heart. Do you know Arnaudville, Breau Bridge? Have family there. I have to help my brother! You do not have to wait, if what you are doing is legal, then you can do subject to or double escrow if you have tenant buyer line up. What did you have in mind?
I wanted to purchase and flip in 60 days or less.
I know this doesn’t answer your question…but I’m in LA too. Which city are you in? Right outside Baton Rouge here.
I live in Denham Springs.
Oh ok, when I said right outside BR I meant Denham too
Reggie there is no minimum time in which you have to hold a property subject to. If there is a limitation on the time it is for how long you can hold it this way.
By that I mean while there is no statute that says you can only do this for 2 or 3 years or anything of the sort, but it is a practical consideration in that the longer you hold a property sub2 the more the interest rate spread can become and the more likely a lending institution may check old loans to see if they can get the mortgage holders to refinance. They would be looking for loans that might be candidates for the homeowners to take out some equity in the refinance.
I doubt that the bank is looking for Sub2 deals specifically. I have heard of investor’s holding houses for 5 years or more.
If you get a house sub2 this is a great way to flip as you can usually get into it with little or no money down, and no new financing. Because of the reduced costs you can get into a house that you would not normally consider as there may be little equity.
Thanks Framer35. Another questions would be whether you have a list of particular forms you would use for such deals. I will obviously have an attorney review the form and become the trustee but I will want to reduce attorney cost by doing most of the work myself. Thanks in advance.