Attorney States - Sub 2 / Lease Option

6 Replies

Good evening folks,

Trying to utilize the subject 2 / lease option strategy to acquire properties in NY.  My attorney who is very familiar with wholesaling and short sales, is not familiar (and isn't optimistic) about the strategy.

Are there any NYers (specifically in the 5 boroughs and Nassau / Suffolk) doing subject 2 / lease option deals?

For others in attorney states, how are you working through the seller's attorneys potentially killing deals?

Thanks in advance!

Originally posted by @Tom Chen :

Good evening folks,

Trying to utilize the subject 2 / lease option strategy to acquire properties in NY.  My attorney who is very familiar with wholesaling and short sales, is not familiar (and isn't optimistic) about the strategy.

Are there any NYers (specifically in the 5 boroughs and Nassau / Suffolk) doing subject 2 / lease option deals?

For others in attorney states, how are you working through the seller's attorneys potentially killing deals?

Thanks in advance!

 You need a different attorney.


I was born in Brookyn and grew up in Nassau County.  Attorneys are called "deal killers" for a reason, particularly the NY cartel.  So I'm not surprised he "isn't optomistic".  What specifically is he frowning upon?

In this case, your attorney is correct. Years back when Sub2 was all the rage, a number of investors took advantage of homeowners and hung them out to dry by not keeping the mortgage current. Needless to say, lawsuits followed and in some districts Sub2 was ruled criminally predatory, as your legal eagle stated.
The good news is that lease options aren't considered predatory.  I've done hundreds over 26 years and I haven't gone to jail. . .yet. . .well, not for lease options.  LOL

Originally posted by @Tom Chen :

@Mike M.

Thanks, is AZ an attorney state?

 I do these in Washington, Arizona & Texas. You can use an Escrow company or attorneys, I use attorneys.

What he may be concerned about for your sake it the Due on Sale Clause. The lender can, but doesn't have to, call the loan due when they find out the property has changed hands. Also, there is no protection for the seller, (which shouldn't be the worry of the attorney unless the attorney is representing the seller).