what should i do with dead leads? i am a wholesaler and when i find a property that doesnt have enough equity in the house, what should i do with it?
what are some other strategies i should be doing if they dont have enough equity in the home?
If you haven't checked out podcast #70 yet, listen to it. It's amazing what this guy is doing turning non-deals into solid cash flow.
i listened to it but i dont really understand how a subject to works. i dont understand why i would want to pay off someone elses mortgage for them . also it sounds like i would need a good amount of money
The buyer gives you a down payment, money in your pocket. Then the buyer makes monthly payments which are larger than the mortgage, most of that money pays off the mortgage but the rest is cash flow in your pocket. You need little or no money to do this, you need a very motivated seller and the right buyer though. It is a complex strategy, listen to the podcast a second or even a third time, I did.
the buyer? i would be the buyer wouldnt i? . yep i am about to listen to it a third time.
i cant find many other articles on subject to's.
and how is this any different from rent to own? it sounds like exactly the same thing
Yeah I've listen to #70 a couple times and can't grasp how to make a subject to deal to work. The only option I would know to work is to short sale the property. If you have a license you could possibly list it.
You don't ever own the property in your name with a subject to, you just get it under contract. You are a middle man who sets up a deal between the owner and the buyer. You get paid for solving a problem for both people. The seller can't sell the property because it is in bad shape or some other problem. The buyer has a credit or income problem so they need seller financing. They are both in a situation where they can not get a really good deal but you can at least get them A deal.
If you bought the property then sold it with seller financing, it would be a rent to own type of situation. The beauty of the subject to is very little or none of your money is involved, you are using the existing loan so nobody needs to qualify for financing (beyond you deciding they are well enough qualified).
The podcast will not give the actual nuts and bolts, paper work etc. to make a deal possible. It just gives a good look at the overall strategy. If it is a strategy you want to pursue you will need to do some serious reading. I have never done one before so couldn't guide you, but I am really interested in a strategy that turns what most people would consider a non-deal into cash flow.
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