Sub2 in Forbearance

[Dustin Mathenia]

Sub2 in Forbearance

This may not be the strangest real estate deal in existence but it was certainly a different one for me. 

I'm not sure about everyone else but 2020 was great for business here in DFW. So, I found this deal from a wholesaler who I've purchase properties from before. The house was in forbearance and no payments due until the end of January. I found it in September and the wholesaler worked out the sub2 with the seller. The owner was leaving the country and facing foreclosure so he basically gave the guy the keys to save his credit. The wholesaler then assigned the property to me for 10K and I closed on it with my good friend, @MartinGarcia, at Fidelity Title. My original plan was to wrap the underlying lien of 157K and sell it OF for 225K with 25K+ down. The house was a 1776 sq ft with a detached shop and garage sitting on 1.7 acres near the Oklahoma border. I thought this would be simple even though the house needed a little work. I was wrong. After several months and a few potential buyers fell through, I eventually found someone interested and I closed the deal immediately. Buyer paid 13K down and split the closing cost. He also traded two properties in Oklahoma--one was a vacant lot next to a lot with a shop with a mobile home spot. So, in short, I broke even on the cash I had in the deal and walked away with two free and clear lots that are in a nice, gated community which I will sell, rent or owner finance to someone. I never had to make a payment or bring the loan current and everyone in the transaction was happy...a win for all.