Numbers on a successful sub2 deal?

[Kris Kaufman]

Could someone provide me with numbers on a good "sub2" deal (starting from acquiring the property "subject to" and then lease optioning it to a tenant buyer)? If I didn't provide enough info, please feel free to ask.

Haven't done much on Bigger Pockets as far as networking and knowledge gathering. Figured it's time to start reaching out! Thanks much and look forward to hearing from everyone! 

[Bill Gulley]

@Kris Kaufman 

flattery will get you everywhere, LOL

Lots of factors play on any deal, most don't carry much of a spread without adding value to the property. Don't get carried away with all the justifications investors try to claim as to adding value simply because they were involved, value is to the property, not to those involved. I've solved many problems that were more valuable than could be assigned to the property.

Search "distressed properties" then look at the definition of "market value" as to the legal and economic and appraisal applications, best to look on an appraisal site.

Real estate isn't like buying clams in or out of season, getting what the market will bear simply because you find someone that will agree to pay a price, search "predatory real estate practices" real estate is highly regulated, fresh clams, not so much.

So, to say what is the average spread.....isn't one really, it would be ever changing. Most sellers willing to do a Sub-To are somewhat distressed and equities can be slim, but each case is different. If you're not touching a property, you may be looking at a 15% price change that includes transaction costs, meaning you may clear about 10%. That's not where money is made, at least ethically. Making improvements, improve appearance, function, use and you add value.

I suggest you study real estate, why and how RE is valuable, such basics when understood will help you see why and how things are done, looking at marketing systems or methods of moving properties won't teach real estate functions, responsibilities, value or the basis of legal aspects. After that, you'll see what profits are possible in applying various types of transactions to a specific property or even to a geographical area. Good luck :)