Hello. Just came from a really good meeting that discussed subject to's. I am very interested in this method of investing. One question, what are the best ways to aggressively market to find homes in order to use this process effectively?
Craig, I've done few myself but I don't specifically target that market. If the opportunity presents itself I certainly mention it to see if the seller will agree. I guess one group to market is to the Notice of Default list for a certain mortgage amount. Another method I really like is the seller financing. For that you can market to free and clear absentees.
we had an extensive conversation about subject to's and the due on sale clause last week. it's a long post, but worth the read if you're getting into those.
I've read @Dion DePaoli eloquent discussion on the Due on Sale Clause (DOS) and the subject to existing financing (sub2)
It's my opinion so too has its place in the toolbox for roasting busters to be able to get title and then quickly resell
It is not a good idea to buy on Sub2 and wrap as an exit strategy
And it's also not a good idea not to have financial means to refinance the property with your own financial ability or to pay off the note with cash
Lets say you bought a sub to, got the deed and then did a lease to own arrangement with a new buyer. I would anticipate that lender, if threatening to call the loan, agreeing to allowing that new buyer to get a mortgage and pay off their existing financing in a short period of time, but not a long time.
Thanks for the input Brian and Blair. I am really looking for more effective ways to market to potential sellers in order to do SUB2's. I am aware of the risks involved. What I have read and heard from people that do this day in and day out is that the banks last resort is to call the note due. I am however interested in learning more about what Laches are now from reading Blair's post.
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