Residential Real Estate Broker · Las Vegas, NV · Member since 2010 · 42 posts · 1 vote
Hello, I live in Las Vegas, Nevada ... and I just had a recent article about doing subject to ... I've got a pretty firm grip about how the process is now thanks to Jon and Bill ... now I'm looking for a case that happens here in my marketplace so I know further how this process might go in a city like mine? Anyone care to share how and what they did when doing a 'subject to' here in Las Vegas? Thanks again :mrgreen:
Real Estate Investor · Las Vegas, NV · Member since 2008 · 1k+ posts · 447 votes
16y
The biggest issue with doing a subject-to deal in a city like Vegas is finding a property with equity. More than half of homeowners are upside down here (they owe more than the home is worth). For a subject-to deal to make sense you need to find a property with equity. They are out there but not easy to find. That being said, I do know of people doing it successfully.
Here is an article I wrote for the BiggerPockets Blog about someone who is doing subject-to deals in Vegas:
Residential Real Estate Broker · Payson, AZ · Member since 2009 · 3k+ posts · 1k+ votes
16y
I love comments like Richards because its clearly stated he said half, that leaves the other half that do have some equity :)
I'm certainly not saying Richard has anything wrong with his statement or that article and whatever it might say but I can tell you this, or rather ask you this, 'Does a property have to have equity to make it a Sub2 deal or even a decent Sub2 deal'?
Maybe not for a 'buy & hold' scenario but there are several reasons why even a property at 90-95% ARV is still a 'do-able' Sub2 deal.
Real Estate Investor · Las Vegas, NV · Member since 2008 · 1k+ posts · 447 votes
16y
Originally posted by motiv8td:
I love comments like Richards because its clearly stated he said half, that leaves the other half that do have some equity :)
I was actually being generous with my statement that ½ of homeowners are underwater. I looked up the percentage and it is closer to 70% as of November of 2009.
While it’s true that the rest have equity, who is your real prospect? Generally speaking, it is desperate sellers. Who is more likely to be desperate? Those who are underwater and can’t sell their homes.
Like I said earlier, I know people who are doing it successfully. It absolutely can be done. However, it is hard work and you have to sift through a lot of garbage to come up with deals that really work. But if it were easy everyone would do it.
Residential Real Estate Broker · Las Vegas, NV · Member since 2010 · 42 posts · 1 vote
16y
Thank you very much all for the replies! I'm learning so much from this website.
And yeah I was figuring that I could still do a 'sub to' deal even if there isn't much equity because all I have to do is find a buyer willing to buy it ... and a buyer that may be willing to buy it is a person that has alright credit and decent income but still can not qualify for a loan, right? Risky I know but ... i have a current buyer willing to put $20k down but can not qualify for another loan because they have a home they need to sell first. So I was thinking of flipping the 'sub to' deal to them and having a balloon payment after 2 or so years ...
Residential Real Estate Broker · Las Vegas, NV · Member since 2010 · 42 posts · 1 vote
16y
Hey thanks motiv8td! I'm trying to find the audio where your talking about 'sub to' deals with Peter ... where is it? I see the play list but which is the one with you?