Subto Method to HouseHack.. Advice?

Question

Hi all, I really want to house-hack as my first entrance into the investor world.

With low cash on hand on no steady "on paper" employment over the last 2 years I feel a subject-to deal would be best for me right now. Has anyone ever house-hacked using a subject to method? I'd love to hear your story.

What's the best list of homeowners to go for when doing sub-to? Preforclosures? Probate? Out of state owners of abandoned properties? I'm in Detroit and see a lot of abandoned properties that seem very much salvageable.

Also, where do I find said lists/homeowners with their info? Somebody mentioned my county's register of deeds - do I just walk in and say I want a list of all current preforclosed homes/ probated homes etc?

Is a lawyer necessary for sub to? If so, recommendations in Michigan welcome.

I'm also a licensed Realtor for what it's worth.

Thanks!

Pace Jordan Morby · Answer

GREAT QUESTION! I do about 1 -2 Subject To deals per day. This market has doubled my creative finance deals... so you are definitely asking the right person. I am also answering this question LIVE on my Youtube channel if you want to go watch it after this.

1. Yes. We do Subject To deals all the time.... and yes you can LIVE in them because you own them. I have lived in a subject to house for the last 7 years.

2. BEST LIST RIGHT NOW: Expired listings is AMAZING. You do not have to go through agents. No offense to agents, but they simply are a barrier to getting deals done. I prefer lists that do not involve them. That being said I do a deal a week with an agent and some agents are REALLY GOOD at creative finance... but most are not.... so avoid them. SECOND BEST LIST is No Equity and 100+ days on market PLUS add the filter of loan origination dates between 2018 and Jan 2022. You can get these lists on propstream, batchleads etc. THIRD is high pain point like foreclosures.

BONUS ANSWER: Free to go to the county BUT the best place to go is to a Title Company or Closing Attorney and get a list from them. You can ask my SubTo students in your area which title company they use!!! I just did a video for biggerpockets Youtube channel where I SHOW you how to do this. Should come out soon. I did it and recorded it so you can watch how to ask and speak to a title company about a free list.

3. YOU NEED A COMMUNITY OF PEOPLE who will help you!!! I have hundreds of students in the detroit area who are doing deals. Both cash deals and creative deals. In fact we have students in every part of the country. Go to my free facebook group called CREATIVE FINANCE with PACE MORBY and find them there. THEY WILL HELP YOU!!!!

4. We always close with a title company or closing attorney depending on the state we invest in. Arizona for example... title company. Georgia for example is a closing attorney. Depends on the state.

Go find my SubTo Community and they will help!!! We have the biggest gogivers in the industry.

Ryan Thomson · Answer

@Alexandra Belle This is a strategy getting a lot of attention. From what I hear, people that do it are a lot more talk and hype than actual closed deals. It also is a LOT of work calling and educating sellers. Is there no one who would co-sign or partner with you on the house hack deal? @Jordan Batchelor is looking for people to partner with with house hacking.

I've never thought to partner with someone - what would be the purpose of partnering? Sorry if stupid question I'm new to this.

Ryan Thomson · Answer

@Alexandra Belle there are no stupid questions. The only thing that is stupid is not asking questions when you are learning. :)

Benefit would be getting the help you need to qualify for money for the downpayment. If you can qualify on your own then I would not partner with someone for a house hack.

Eliott Elias · Answer

The best candidates for subto are sellers with no equity and a low interest rate.

Subto Method to HouseHack.. Advice?

Subto Method to HouseHack.. Advice?

Most Popular Reply

7 Replies