Subject To: Flip Deal

[Jonathan Makovsky]

What risks will we be contending with on a "Subject To" flip deal that we are acquiring? 

We understand the bank can call the Due on Sale Clause, in which case we expect to have 30 (90?) days to pay the note off, is that correct? The Sellers understands that their names will still be on the mortgage. 

What other risks/concerns should we and the Seller be aware of? 

Thanks in advance.

[Brian Gibbons]

@Bill Gulley

Buying and subject to and quickly refinancing is probably the way to go and I like subject to and then resell on lease to own with a very strong tenant buyer and work very hard to get the tenant buyer financed within six months or so

The risk of the sellers is that the loan can be called due but if there's a plan in place for resale quickly generally the lender will allow you to do your plan  if you can provide paperwork to that effect

What not to do with the sub to is to wrap it, and on sell it with owner financing,  once you own it via sub to, bad  idea