Pros and Cons of Sub 2's...

[George Louis]

Sub2 deals have been an area of interest to me. As I am looking into doing these, I would like to know what are the pros and cons of doing them.

Also, what course do you recommend I learn from and why?

Thanks in advance!

George

[Bryan Hancock]

Originally posted by George Gerbasi:

Sub2 deals have been an area of interest to me. As I am looking into doing these, I would like to know what are the pros and cons of doing them.

Also, what course do you recommend I learn from and why?

Thanks in advance!

George

Pros:
1. You get to use some else's debt to finance your deals
2. You don't have to deal with bank underwriters
3. You can close quickly
4. You can make thinner deals work because you avoid a lot of transaction costs

Cons:
5. A lot of paperwork
6. Sellers don't understand them and will call you up later confused
7. You will always have the remote possibility that the note will be called

That is what comes to mind immediately...I am sure there are other things to consider too.