Wholesaler · San Antonio, TX · Member since 2017 · 13 posts · 2 votes
Am exploring Wholetail as an avenue. Seems like people typically use private $ to pay off any underlying loan before listing, but am wondering if you can simply acquire Wholetail property sub-2 instead bc it would be MUCH cheaper.
Can this be done? I understand some realtors might be hesitant to list a property you own sub-2, but you can always find a willing one: especially if you're licensed yourself.
Yes. You can list and sell a SubTo on the MLS. We do it frequently. Here are a few different questions/strategies you need to look at IPO.
1. Get contract from seller on SubTo. Before you own it, start marketing it on the MLS as owner financing. OBVIOUSLY, your contract with the seller should allow you to do this and you should disclose to the seller what you are doing.
This method allows you to sell the SubTo on owner financing to an end buyer without having to come out of pocket... as long as the end buyer brings your entry fee to the table.
2. If you already own the SubTo... you can sell it on the MLS. You are the owner. You can do what you want, when you want.
3. However, if you are listing the SubTo as owner financing and passing the SubTo over to the new owner... you need to disclose to the original owner that you are no longer involved. Just my feeling. If you are staying involved through a wrap/wraparound, you are still involved and therefore I don't see the need to tell the original seller.
I am the owner of SubTo.com
I do about 10-15 Creative deals a month. There is not much we have not ran into.
Hi @Andres Diego. Yes, we've listed property in Georgia on the MLS that we took Sub2. As long as you're the owner of record, there shouldn't be any problem signing a listing agreement.
Now, whether you actually should sell Sub2 is another question entirely...
Regarding the "should" aspect: I'd only accept a buyer that would pay off the underlying note/all liens. Do you see/have you experienced anything potentially wrong with that?
@Andres Diego Selling to a buyer who will pay off all underlying debt and liens is absolutely the cleanest and safest way to go. You're doing it right: No problems there at all!
One alternative would be to sell Sub2 to your new buyer. I would have a huge problem with that approach: Not clean, not safe for the original borrower, not ethical at all.
Yes. You can list and sell a SubTo on the MLS. We do it frequently. Here are a few different questions/strategies you need to look at IPO.
1. Get contract from seller on SubTo. Before you own it, start marketing it on the MLS as owner financing. OBVIOUSLY, your contract with the seller should allow you to do this and you should disclose to the seller what you are doing.
This method allows you to sell the SubTo on owner financing to an end buyer without having to come out of pocket... as long as the end buyer brings your entry fee to the table.
2. If you already own the SubTo... you can sell it on the MLS. You are the owner. You can do what you want, when you want.
3. However, if you are listing the SubTo as owner financing and passing the SubTo over to the new owner... you need to disclose to the original owner that you are no longer involved. Just my feeling. If you are staying involved through a wrap/wraparound, you are still involved and therefore I don't see the need to tell the original seller.
I am the owner of SubTo.com
I do about 10-15 Creative deals a month. There is not much we have not ran into.
@Pace Jordan Morby Thanks for the detail on the exit strategies you use. I've actually been following you for a few months now, & really appreciate your dedication to educating people ~
Regarding method 1: Didn't know you could market a property on MLS you do not yet own. In any event, how else do you like to market for owner finance buyers? I don't know bc I lack the experience, but I'd think MLS alone is risky to rely on ~
Andres Diego... thank you for following me bro. YES, you can list things on the MLS without owning them as long as you disclose to the seller that you are doing it. We have only done it about 12 times but its very effective.
If you have actually bought it Subto and have title, then you can do whatever you want including list it on MLS. You would not need to explain to anyone except to the closing attorney to help them get the proper payoffs set up.
If you just have it under contract then you would need to disclose to everyone what you are doing.
In addition to my reply, I see that @Pace Morby commented here as well. He is my Subto mentor. You can certainly rely on what he says regarding SubtTo. He has a paid mentorship but also gives away massive value each week with Wholesale hotline and his Sunday Service Live feeds. Highly Recommend.