"Subject to" vs "Wraps"

[Gerald David]

I live in an area with a small population. I need to add more "tools" to help make deals happen. With that said, I'd like to add deals like "subject to" and/or "wraps" to my current tools of wholesaling/buy & hold.

My question: what are the differences are between acquiring a property "subject to" vs using a "wrap". Why would I want to do one over the other?

[Account Closed]

As for due-on-sale. It's a risk. It happens. There is no rhyme or reason that you can figure out, IMO. You'll hear people say it will never happen when the interest rates are so low and/or the payments on being made. But it has happened to investors I know when interest rates were low and the payments were never missed. Let's remember that the collateral is the lender's security. If I were a lender and the property had real equity and I found out the borrower had sold the property, I'd call it due. I'd have nothing to lose and possibly a lot to gain.

There is no due on sale jail. There's breach of contract and failure to perform and possibly screwing up someone's credit. However, if you don't have a Plan B that can be put into action in the time period from when a lender actually calls a loan due and a foreclosure action in your state, then you shouldn't do sub2. With comments like I'll never be a Sub2 Guru.