subject 2: still worth it in late 2017

7 Replies

So I've been looking into "subject to" recently and would like to start doing it. I understand a lot of subject 2 was done post recession years and it worked great. I understand how in a post recession economy it would work great, however now that the market has (largely) recovered are there still plenty of subject to deals around that would make sense to an investor?

absolutely there is always a situation where a subject will work We are currently working on one now where by the owners sale fell through and he needs to move on with some cash in his pocket He would just about break even from a sale so a subject to would work for him.

Good to hear. Are financial institutions starting to make use of the DOS clause more today than they used to or is this still a rare scenario?

The interest rates are still low so there is little incentive to call in a higher interest rate ,but as with all subject 2's have your financing in place in case they do

depends on the market many markets are so robust.. sellers just list and sell no problem

personally I just look at it like anything else I buy there MUST be significant equity other wise why buy it.

to buy it for retail .. at least for me.. leaves you no exit if the loan is called..

I look at it almost like a Dr. each house is patient, whats the prognosis? 

Sellers could list and do xyz, but that doesn't mean they will or that it hits on what they want. 

I got a house sub 2 this year, I only did it due to instant equity, ok cash flow and I think I can refi should I get called. 

The only reason I can see why the seller allowed me to do this is because he wanted me to take all the junk and he was too busy to deal with cleaning and selling (MBA, work and a baby). 

Lesson learned, think on your feet. Propose creative deals, the worst they can do is say no. I truly don't view this business as convincing a seller to do anything, its finding the square peg and putting it the square hole nice and easy. 

Everybody is bringing up good points. How do you normally handle insurance? I read conflicting advice, what makes the most sense to me is that as a buyer the insurance should be in my name. Is that what you all are doing as well? 

Originally posted by @Arnel Ackar :

Everybody is bringing up good points. How do you normally handle insurance? I read conflicting advice, what makes the most sense to me is that as a buyer the insurance should be in my name. Is that what you all are doing as well? 

 I have it insured plus the regular insurance. $400 extra a year

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