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.
twice.
Anyway, as I said, my curiosity has been satisfied.
Of course, I do have a bit of an advantage here...
Nah, pointless.
back to the originally scheduled program. :mrgreen:
Give us all a break and shorten your posts David as they are all long and say absolutely nothing.
Yep..
I'm pretty dog gone sure
we were the first to call it that..
Actually "sub to" I think without the 2... then the 2 appeared... it was late 90's...
( I had a website where I sold a course and added the 2 to it, it sold for $197 back then)
Now, if you held a gun to my head and said are you only ones couldn't say... ???
Just know we stupidly called "buying houses "subject to" the existing liens sub to... or "sub 2" and it sorta became a technique of sorts..
I mean it already was... but, then it had a name... at least in the places we were on the internet...
Before then the older guys and mentors... simply understood it... as what it was... as they had been doing it for years and years...
and it was simply a way they filled out a purchase agreement leaving loans, etc.. in place...
They simply knew you just left the loan in place... there was no name for the technique...
We would ask... How do you buy "sub to" thinking of it as a speicific technique... when it was really just another way to acquire properties if you were savy enough to negotiate it that way......
I actually think it was a friend of mine that coined the term the first time...
and it was a thing then...
If some of you have been around for awhile then you will remember the name Jim Piper... one of the smartest real estate guys I've ever known...
If I remember right he answered a post mine or someone else's with... with are you talking about... buying houses subject to the existing lien...
Uh.. yeah...
Anyway.. for him it was a laugh... that we asked it as if it was a specific technique with a name...
Oops.... Taz...
Your wrong again....
No one assumes anything.. (well, accept you)
And if you read my last post you'll see I say just that.. that we were laughed at for giving it a name...
Who knows maybe Robert Allen did call it that back in the 80's...
And mabye we (my friend started it.. before you look up the post and hold that against me.. lol )
Regardless... We didn't know... I was too young in the eighties and real estate was the last thing on my mind....
But, everything pre 89' some pre 88 was all Non Qualifying Assumable anyway... so, it didn't really matter if you took if subject to or not...
It was really a non issue...
So, Taz... I believe you whether you heard Robert Allen say it or not...
Truthfully doesn't matter to me...
I'm not trying to make it a claim to fame... lol...
And I know that when we called it that again.. it was more of a joke to the older guys.... Hey maybe that's why...
Maybe they had heard Robert Allen call it that... and couldnt believe we were too...
Who knows..
But, regardless... Your understanding of sub3 is still not what you think it is...
We are not buying the note...
Although in the original incarnation that was one way we thought it would work to skin the cat... It just didnt' solve the problem...
Only would have solved part of it...
And what does Robert Allen filing Bk have to do with anything...
Cracks me up when folks use the.. Well so and so filed BK so their info isn't any good...
If their one thing I've learned through the years....
One sometimes you crack the egg shells too hard when you decide to cook them....
And that's ok.... because it's better to be in the game...
And in the game... is where the experience is....
And in those experiences... mistakes.. not that I'd call a Bk a mistake...
(and No.. I've never filed a Bk... knock on wood)
But, I wanna learn from the folks who've been in the trenches...
And have scars... to prove it...
Because after all is said and done...
It ain't easy..... always...
And you gotta be strong to survive...
BTW, I've been doing this a long time and I've seen a lot come and go...
If you have to "fake it before you make it" you aren't ever going to make it.
David, do the words, "Apprenticeship Program" sound the least bit familiar to you? Don't bother answering here. Just think about it for a little while.
Wow, so many confused folks giving judgment to something they
do not understand.
I'm a student of David's, but seeing this is my first post here, I'm not sure that'll hold any weight amongst the group. I do, however, have over 1,100 on one and a few hundred on several others...does that count? :)
But all I can say is:
- yes, "sub3" is different and better than doing "sub2s".
Let's just say he's cured me from doing anymore sub2s..which was my main niche since 2003.
- no, Taz, you don't assume any loans.
- David's program is the real deal. Believe me, I've spent countless $1,000s on REI stuff when I first got the "bug" in 2000. He puts alot of time and effort into what he shares. So whatever he charges for the course, it is WELL worth it. Too many positives to mention.
It's also evident that the perception here is different from those (like me) that deal with David on a regular basis.
But anyone that actually KNOWS him will vouch for him.
I'm also curious, Taz, to know who it was you spoke to concerning the intricacies of sub3.
And did you "make it worth their while", as you claimed you would? If so, how?
No disrespect to anyone here, but I figured I would chime in...coming from someone who actually gets it.
Not exactly sure what
you're eluding to...
And your faking it till you make it...
Absolutely... folks do that when they start...
I most certainly did.. I knew nothing and had to feel my way through it...
Nothing scarier when you are starting than talking to a seller wondering if they are going to figure out you've got no money and not exactly sure what you are doing...
So, you fake it... the best you can....
Till you don't have to....
Of course I'm sure you've always know it all...
You much better than me...
And failing forward... it's an absolute must... !!
Learning to get back on the horse is huge...
As well as learning as much as you can from others... so, you can avoid it as well..
Apprenticeship program.. not sure...
I don't have one...
So, nope not sure...
Taz.. were you on the Apprentice?
:)
And if so.. why are you hiding behind the little square... Your Famous!
By the way... Taz is one of my sorta things I collect from time to time... in fact my daughter just bought me a Taz Tshirt the other day...
i'm sorry but this is like the 3rd or fourth time that someone has scrutinized david's stuff and every time, someone magically appears with a post count of 1 to stick up for him. just an observation.
However, you might be interested in how we discussed these things. We had our attorney on the line when we conversed and we made it very clear we did not want any of the materials, nor any proprietary secrets or anything like that. We were not looking for them to explain the program to us in any way.
The ground rules were simple, with each one we detailed our understanding of a different PART of what I suspected and simply asked for a yes or no reply. They answered yes where we expected and even more importantly no where we expected.
But, it isn't new and he didn't "invent" it any more than Al Gore invented the internet.
Apparently, the conglomerate of folks that filled you in were incorrect, as you don't flip sub2s.
I wouldn't say that's how a "sub3" transaction works.
But, if you do know, then spare everyone here amongst the boards and reveal it.
As you said, nothing is new.
Folks - please stay on task and keep the conversation cordial. You're welcome to disagree with one another, debate, etc, but I don't want this discussion to get out of control. Do NOT get personal, please.
Thank you.
Too funny....
I had a friend that received the same
phone call....
And he told them... sorta the same thing...
And just agreed with them so they'd go away...
Nope we don't flip sub2's...
It ain't nothing like that...
Trust me... if you truly knew what it was...
You'd be "keeping you mouth shut as well... "
And emailing me saying... Wow!
Who'd ever thunk of that...
And Taz... the only reason I say that... is because I've just read a few of your posts...
You are a smart cookie... But, trust me when I say....
This is... That different...
Now, let's let this thread die...
Good grief....another book of bashing David Alexander and the SUB 3 program.
PS let me say, that I am a student of David's......:)
Spinning around in a state of confusion, coupled with
mindless babble comes to mind. :wink:
Sometimes....
It's seems obvious... but, it's not what you think....
But, Hey I still believe there or things in this world we don't know for sure...
Bigfoot
Loch Ness
How the pyramids were built
I'm unfortunately not quite to a point where I know everything yet...
But, here's to failing forward...
And faking it till you make it!!
I had a long winded reply, but...
Ah, never mind.
They are pretty cool, handwritten with no errors, strikeouts or misspellings. Well, no misspellings given how things were spelled THEN. And big red wax seals proving the taxes to the crown were paid. I wish I had the deed that was part of the transaction too but if wishes were horses...
This is SO RIDICULOUS! THERE ARE NO SECRETS IN REAL ESTATE INVESTING!!!!!!! It's that simple. I don't care whether you're buying or selling the property; buying or selling a note; creating a note; buying or selling subject to the existing financing; buying or selling with owner financing - IT HAS ALL BEEN DONE BEFORE. There is NOTHING new here.
Let me help you out with the things you don't know:
There is no Bigfoot.
There is no Loch Ness Monster.
There are no secrets to real estate investing.
The pyramids were built one block at a time.
Mike
that would be worth the trip!
Secrets vs HOW TO.....
This has not been done before I can attest to that and before someone jumps down on me just be sure you know what you are talking about.
My deeds are recorded in public record.