Can someone please explain sub3 financing to me?
Accountant · greenwell springs, LA · Member since 2009 · 177 posts · 43 votes
i don't understand how it differs from buying sub 2 and then selling using owner financing? thanks in advance for your help.
sub3? oh, i'm all open ears here! let me know when you come back.
I am all ears too! But, I suspect it is one of those guru made up scamming terms like "Flex Options". ROFL!
i thought this was a popular technique. obviously not.
David Alexander has started becoming active on this board, I suspect he'll come on here and touch on this subject. I would like to hear some explanation on it as well but fear since he does sell a course/program/system he probably won't go into much detail.
It does sound interesting though
there is another thread on this, it's called subject 3 financing and it is in the creative real estate financing category. David chimed in and had a lot to say in response to comments others had made about his video being unprofessional, but did not reveal any details about what subject 3 actually means or entails.
I guess you could try PMing him.
in fairness to David, the price he is asking for the video training seems very reasonable compared to other "gurus". he also seems genuine and honest.
HMMM....Seems to me like this might be some kind of plug. Now all we need is for stephen to post the link along with an explanation on how this technique will make us the next real estate millionaires.
yeah these "plugs" are becoming pretty common but be careful, if you call them out too much on it you start getting your posts deleted.
holy moly. "sub 3" is an actual term being used?
You purchase a home "subject to its existing financing". This is known as a "subject to" deal. Once you've recorded the deed and needed paperwork, it's yours. How you sell, is up to you. Seller financing is simply an option you have, when selling it.
Sounds like someone has a new course out......
There is no such thing as sub3.
It is just a "coined phrase" describing a particular strategy incorporating buying subject to (sub2) properties.
I am now working a "secret" technique using sub2 that is very creative with my partner Nick and I think we will "dub" it "sub10" simply because it is ingenious and 10 times better than a typical sub2 transaction. :lol: .
If its 10x better than sub 2, shouldn't it be sub 20?
Ok, well... Can't say much... as I don't won't my posts deleted either...
I'm the worlds slowest typist and to type and then go correct my post...
(don't always do that, takes me forever)
First I ain't hard to find on the net...
Stephen, thank you.... thank you very much....
The students that I have.... have been with me for years... not just as buying the next course.... I don't have a next course or bottomless marketing funnel...
or extra coaching....
I created what I created after attending a seminar as a guest and they were charging way too much (5 - 20k)to teach folks nothing...
Everything was a come on to sell more...
I set out to build the best real estate training on the net.... from start to finish.... (now, it seems I keep adding to it as I get ideas, without charging more... not a great business model... none the less I'm in a position where I can)
As far as new techniques.... Yes, sub3 is quite different...
Mike, Oh and others.. I was where ya'll were at several years ago... and thought their were No new real estate techniques.....
Wrong...
I was surprised when I found several friends with real estate plays I had never heard of and asked them to help me with something new I was working on...
Took me over a year to work out the details...
and get it right...
A friend of mine coined it Sub3... because it was "better" than sub2 and removed the risk....
For lack of a better name we left it....
And it's stuck...
It's simply a way of buying and selling houses with little risk and avoiding costly entanglements... and all that stuff....
And sub2 deals owner financed carry risks....
Plus, I don't use trusts or any of that stuff any more....
It confused the title companies and nowadays I want the title companies on my side so, that my deals are smooth and seemless...
Also, just last week I created a completely new technique... that I shared with my students that I coined...
The REO Note Flip....
(no, we aren't selling are flipping the notes)
And it too isn't anything you'll will have ever seen....
It removes all the risk of doing the cash deals that are everywhere....
I stumbled onto the idea when I took a student to lunch and he didn't have the cash to take advantage of the deal and I didn't want it in the area it was in... nonetheless there was 35 profit... on a 70k deal with no work needed.... (I don't rehabs, and I've only done a few wholesale flips in my life)
What You have to understand is I'm a student of creating paper... and my business is owning notes and finance and creating them at severe discounts.... and getting them to cash out....
Read the book by Wade Cook, the Real Estate Money Machine... that's the closest thing to what I do.... You can get it for a couple bucks on amazon.... I simply took his strategy and made it better... by twisting it a bit.... to remove the risk of sub2..
Then from there turn it into an automated system... and let your people make the money for you... running your system...
Anyway, I'm damn proud of my Sub3 Web Training it's likely one of the best bangs for the bucks for Real Estate training and is way under priced compared to what others sell their stuff
for.
It literally contains almost 13 years
of my real estate experience in one place, it's way cool.
:)
Well, there ya go. Sub3 is a made up term 'cuz it removes all the risks of sub2.
David, I don't mean to be rude but your sub3 technique is not new. My parents were doing that 40 years ago and my grandfather did it long before that!
I must say, I am incredibly impressed you created a brand new, never before seen technique in dealing with REOs over lunch.
Respectfully, I submit new things you think you are creating are in fact rediscoveries of things done for thousands of years. No, I am not interested, nor asking, for proof your techniques are in fact new and unimaginably creative.
What's that? Did I sense you asking, "Why not?" Please, let me explain.
Real estate investing is a very public activity. All sorts of people see the results of deals before, during and after they go down. On those really rare occasions when something truly innovative comes along, it spreads like wildfire. Closing attorneys talk to their friends, many of which are also attorneys, who talk to their friends, etc.
There are no secrets in real estate investing, now in the area of information marketing, that is an entirely different matter. ;)
The infomercial must be filmed quickly, because the guru can only afford to rent it for ONE DAY.
I hope that I don't lose my tin foil hat society membership for my little slip!
Mike
In all seriousness...
We have been watching some of David's videos in the office this morning. I would be VERY interested in talking PRIVATELY to someone who has taken his training. I am not looking for you to violate copyrights or anything like that. I am not interested in his materials.
If you aren't a shill, and I will know, I can make this very worth your while. You can contact me through the PM system here initially.
hey
after you guys figture out sub2/3 send the owner finnance guy to me and I will get his money back at a discount of course. I buy notes right out of escrow.
Gosh....
(pure sarcasm ahead)
Ya'll are so right... their are "no secrets"
(end of sarcasm)
Mike, I think you may actually know me... is this Mike the ex cop from Ohio...
If it is... then you know me...
Regardless of a technique.... what I teach is so much more... and is mostly about automating and running your real as a business which very few do...
How to hire others, creating systems, why most don't, getting started, marketing etc, etc...
Taz... maybe someone will answer you, I have no idea... I assure you I have no idea who of them are on this board...
If any...
But rest assured the couple techniques out there that I've created are "New" in the sense that...
No one is doing RE the way I do it...
It's sorta like walking through a forest... and one day.... realizing.... Omg... I've been walking through here for years and didn't see that other path... think I'll check it out...
And then wondering why No one else has ever taken that path....
No this can't be a shortcut.... Wow.. it is....
Oh, Stephen, if you are still interested in understanding what David calls his sub3 technique. Send me a PM, we can spend 10-15 minutes on the phone and clear up any questions if you already understand buying sub2.
Taz = King of DD
(Due Diligence)
As usual, nice leg work Taz. You remain my hero in this category! :lol:
Lol...
Then you didnt' talk to any of my folks..
Because if you did...
You would be quietly amazed...
I know they keep their mouth closed..
Or you simply talked to someone that didn't understand it and thought of it... just like you do.. (meaning they haven't been through the training and are just speculating as you are... lol).
Taz... It doesn't matter to me what you think...
The sub3 term was created by a friend of mine as I said in an ealier post...
Because it isn't sub2...
If it were just marketing... I'd think of a much flashier name....
Sub2 is really a stupid term for what sub2 is... and was coined after buying property "subject to the existing lien" back over 10 years ago by me and a few others on one of the larger real estate sites back then as we didn't know know what to call that technique or how to ask questions about it..
I'm actually fixing to giveaway my Sub2 course for FREE for short period of time..
So, sorry if Sub3 wasn't completely different... and something extremely cool.... plus all the business automation stuff which is more important than the technique...
If it was the same and just a marketing ploy as you say...
Then my students would.... well... to say the least be really "pissed"...
Which if you really knew me then you'd
know... that would drive me insane...
I'm a complete customer service freak in all my businesses... ask my employees...
So, if I was selling sub2 just wrapped in a marketing blanket...
Then guess what.. it would be a marketing nightmare...
Sorry nice try!