Would you be looking for properties with no equity or just any property that the original owner is willing to walk away from? i know most sub 2 investors like to get rid of the property on the backend, but i would like to buy and hold some properties, and owner finance them.
That depends on your type of investing…
You can make bucket loads either way.
If u wanna owner finance a sub to home for 30 years, should u be looking for properties with no equity so that u will not have to sell it on the backend to appease the original owner.
You shouldn’t change your entry strategy any. Instead of selling them once you purchase them, hang on. If you’re asking permission to buy properties Sub2 at retail prices, I don’t think any investor will willingly give you their blessing but it certainly is doable, you’ll have to decide what you’re comfortable with and as long as you’re making money…I guess you ‘should’ be ok
But, how would u convince a original owner to give u the deed and keep their name on the original note longterm? I know u can refinance and put new financing in place, but what if u can’t get refinanced?
I personally never promise the seller a timeline. I also never intend to keep any property Sub2 longterm. My personal strategies with Sub2 are short to mid term. If its a decent deal, I will cash out of it in a years time but I never tell the seller I’ll refi or cash out in a certain time period.
What I do though(and this would be different for you if you’re looking to hold long term) is make sure they know I don’t really make any actual money until I re-sell the property. I tell them I’ll probably make a few bucks a month but until I get rid of the property, I’m not really making any big bucks so I don’t intend on holding it forever but who knows how long it will take.
Trust me, when you’ve got a seller willing to Sub it out, chances are the timeline wont’ kill the deal, something else will.
Moorman
Rereading your questions there is a hint that you have to talk the seller into your program… Once you perfect a presentation that covers the seller Sub2 objections they stop asking questions and dont have issue with you buying that way…
As for when the note gets paid off there are only two answers to that question. Anything else may create a deed restriction which you do not want to do.
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Upon the last payment being paid.
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Upon a refinance of the note. Which is not my intention.
When you present to the seller the reasons why they should sell Sub2 you’ll be fine.
Good Luck