Updated over 8 years ago on . Most recent reply
Purchase agreement vs. subject 2
Hey guys so I understand that these are essentially the same exact contract. The only difference between them is the addendum surrounding sale price "subject to" dadada.
My question is being that a wholesaler does not know whether the end investor buyer will be a rental investor versus an all cash flip investor, how do you determine whether or not to conduct a subject 2 versus an all cash deal (via contract) to seller?
*My understanding is that typically rental investors will want to take over favorable existing financing while a flipper will most likely pay all cash. Also what numbers would make an appealing subject 2 existing financing deal look good ( amount of equity, etc.)
How do I determine which avenue to take contract wise?