Updated over 16 years ago on . Most recent reply
Another Sub2 success!!
Doing sub2's work even in this market.
countrywide loan ARM @ 6 %
adjust in 11/11
$5,421.04 to bring current
$1,341.05 monthly payment PITI
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Saved homeowner from Foreclosure
L/O tenant contracted this morning
$ 15k down - $5,421.04 = $9,578.96 pocket money
$ 1500.00 monthly
+ 20.00 payment processing w/ credit reporting (clearnow.com)
+ 50.00 AHS warranty (ahswarranty.com)
= $1500.00 - $1341.05= 158.95 net monthly cashflow
Not a Huge cashflow deal however the option money is fine.
Deals like these are why I like Sub2's w/ L/O's
Most Popular Reply
All I can say is that the L/O sub2 is the perfect Buy/Sell strategy for today's market or any market for that matter.. An added bonus is that most sellers, especially in today's market are much more flexible to accomodate a longer Option term. I prefer 3-5yr term. Being a Investor/Buyer Agent I also do options for my buyer clients. It's a niche' for me because most realtors have a Retail/Put a sign in the yard and hope for the best mentality. They also want to get paid now. So I tell them that I will educate them a little and also tell them that I will pay them the seller side of the commission out the option money if they refer those clients to me.. They have no reason at that point not to talk to their seller about L/O. I also like the Lease Purchase contract (no-option) for Controlling Land in emerging market areas. Just go to your local city or online and take a look at their master plan. Concentrate on all the Infill land that's already pre zoned for multi units close to town. That's where your small developers are & will be looking to build. Their easy to work with and will also JV with you. Thanks for opening up this post. As you can tell I'm big on L/O and sub2. To create more wealth rollover all your IRA $ into a Solo 401K and use those monies to make the deal Tax Free. Let me know if I can help.
Matt Mathews
Mathews Associates LLc
Retirement Advisor
RE Investment Services