All Forum Posts by: Account Closed

 Even using your best-possible-case scenario, there are many better ways to invest $25k IMO. And there is a lot that can go wrong here (opex and capex not accurately accounted for, property value or rents go down, tenant issues, seller files for bankruptcy, issues with loan servicer (I've experienced this one), insurance issues, mortgage company exercises their right to call the loan due on sale, title issues, judgements etc. there is a lot that can wrong with subto). I look at real estate through a risk vs. reward lens and would much rather put $25k elsewhere and make more money faster with less risk personally. 

If you're 16 years into the amortization, the seller has plenty of equity and would list, rather than sell Subject To.

 I've been in real estate for a minute and the first time I heard of Pace was Friday night when his followers started spamming the forums with a bunch of BS. Not a great first impression. 

 I guarantee it won't catch anything. People who are involved in anything tend to have an overinflated sense of self, ego and importance. Real estate investing is just one subset of any type of investing, residential (what most sub2 is) is another subset of that, and "creative" purchasing is a tiny subset of that. Don't conflate the one-off thing with Gamestop with what real investors with real money have on their radar. With all due respect, Pace is a nobody just like I'm a nobody and you're a nobody. He's probably less of a nobody than either of us, at least in terms of social media, but his 250k followers and 50k worth of views on his videos probably doesn't even place him in the top 10 thousand users. Bigger Pockets has over 1 million followers on Youtube and I guarantee if you walked out in the street tomorrow and asked the first random 100 people you saw if they knew what it was, you'd be unlikely to get even 1 correct answer. 

Sub2 is a nobody in a subset of nobody in a subset of "yeah I've heard of that but I have no idea what it is".

If the mortgage is in trouble that would trigger a foreclosure. DOS is for when the title transfers to a new owner (who has not been vetted by the bank, and without the bank's permission). Not really seeing the PR angle either, sorry. Not many people really know what subto is, and when presented with the conecpet, many think it's kind of shady. And like JD pointed out, a tiny percentage of transactions are made using seller financing, and an even smaller percentage of those are done using subject to. I don't think it would make any headlines even if all those loans were called tomorrow, and with foreclosure rates being as low as they are, the banks could probably resell those properties quickly at higher interest rates, pocket new closing costs, get low interest loans making less than inflation off the books, etc. Just food for thought here, all the hype around subto lately got me thinking, it's not even a strategy I typically employ but like to have in my back pocket in the rare case when it makes sense.