Subject To Funding, HELP BIGGER POCKETS HELPPPPP!

[Justin Thomas Sutton]

Hey BP,

My wife and I primarily buy property subject to the existing finance, while based in the Denver metro area, we buy all over the US especially in South Carolina, North Carolina, Texas, Georgia and Florida to name a few of our favorites! We constantly turn away deals due to funding issues, we have found it very difficult to secure financing in the 2nd position even though the returns are almost always 6 months or less. I am curious to get advice from someone who has secured 2nd position funding for a subject to acquisition from a "COMPLETE STRANGER." I understand by the time you got to the lending steps of the deal you may be close associates with them but ideally someone you have built a relationship up with that you did not know prior to learning about subject to's.

Thank you and I am eager to hear your responses.

[Jay Hinrichs]

you need an equity partner you will just spin your wheels looking for a second position lender.. they are far and few between and I don't know many who do it as a business model.

we do a lot of equity partner deals all over the US.. but its not a loan model its an equity model.. this allows the folks like you to scale.. keep in mind if you cant take it down nothing of nothing is nothing. if you bring in big money equity and can take them down them you share the up side.. you have partners for life and can hit the scale you want.. 

other wise just keep searching for that unicorn second position lender that basically does not exist.. its total risk money for the investor so they need to be compensated for said risk.