Subject two

[Ralphy Rosado]

Does anyone know how  (subject to) work's. Does anyone have the form that are use to do a subject too

[Jason V.]

@Ralphy Rosado Definitely talk to a local attorney who specializes not just in real estate, but preferably these types of contract deals. There are potentially serious legal implications to structuring deals like this, and they can't or won't work legally in all areas. In some places these sales can be voided if they are deemed to be 'unfair' to the seller - meaning you can be mandated to either pay the seller a court determined 'down payment' - even after the fact. Sometimes they are subject to review by a judge, who can kill a deal just as easily. Other times you need to be a licensed agent or broker (like many states have moved towards with wholesaling) in order to legally work in this arena.

And for all that is Holy, don't do anything that could be interpreted as trying to hide the deal from the lender, or tell your seller to do that in any way, shape or form, if you are going to transfer the title. In the research I've done on Sub2 deals (which led me to conclude it's not the right strategy for me, but your mileage may vary) there is Federal Law pertaining to "Fraudulent Concealment" - and the potential of having a 'Due on Sale' clause triggered is much less worrying to me than committing a felony.

Add all that up with the fact that you'll still need to find motivated sellers who have equity in their property, but don't want to sell with an agent right now (which is extremely tough around here with inventory being so low and houses getting multiple bids at/above asking price) and I decided it wasn't for me.

All the guys out there selling $3995 courses to teach the 'secret' of making a Billion dollars with Sub2 deals will not give you an honest evaluation of the strategy - nor will I. Do your homework, figure out if this strategy is legal, ethical and fits your skillset and resources, then make your decision.

Long story short: The absolute first thing you should do is find a local RE attorney who understands Sub2 deals and take their word over anything you read here (as great a resource as this is, no one here is your lawyer.)

Good luck! And keep us posted!