SUBJECT 2 DEALS EXPLAINED

[Jordan Santiago]

Guys, everything I have learned in real estate has came with ease, except understanding a Subject To deal.

I am a wholesaler, and occasionally buyer myself. I just don't understand the pros of a end buyer (rehabber) buying a property Subject To. I get wholesaling a Sub To to a buy and hold investor, but what are the pros for a rehabber?

Please if someone could break it down, or give me a fake example, I would really appreciate it. Thanks so much BP fam

[Michael Thompson]

@Jordan Santiago - Typically for a flipper it’s cash out of pocket. Subject to deal has little cash up front to purchase the home. Your cash would actually go to rehab instead. I’m doing one now that took 28k up front to purchase the project subject to. Rehab is only 25k. I’ll be just over 50k out of pocket instead of 150k. Interest on the underlying mortgage is 4% instead of 12-15% for hard money interest only payments.