Subject 2 advice requested.

[Lee Mast]

Hi. 

I have an 8 unit apartment building I am considering making an offer to purchase with a subject 2/owner finance hybrid (Pace Morby stuff).

The property is currently jointly owned by the two children after their dad passed away. The mortgage is still in their dads name. 

Is there any additional implications/risk of attempting to purchase this property Subject 2 vs purchasing from an owner with the mortgage in that owners name? 

What kind of questions should I be asking? 

Has anyone here actually successfully found the mysterious "Due On Sale Clause insurance" referenced by Pace Morby on his Bigger Pockets podcast appearance on BP show#527 on Nov 4, 2021? 

[Jay Hinrichs]

Quote from @Lee Mast:

Quote from @Jay Hinrichs:

Quote from @Account Closed:

Quote from @Lee Mast:

Hi. 

I have an 8 unit apartment building I am considering making an offer to purchase with a subject 2/owner finance hybrid (Pace Morby stuff).

The property is currently jointly owned by the two children after their dad passed away. The mortgage is still in their dads name. 

Is there any additional implications/risk of attempting to purchase this property Subject 2 vs purchasing from an owner with the mortgage in that owners name? 

What kind of questions should I be asking? 

Has anyone here actually successfully found the mysterious "Due On Sale Clause insurance" referenced by Pace Morby on his Bigger Pockets podcast appearance on BP show#527 on Nov 4, 2021? 

That insurance won't do you any good if you can find it. It's wishful thinking.
Anyway, check and see who the title's name is in. It may be that probate hasn't been completed and the siblings don't legally own it yet.

Assuming that probate is taken care, doing owner financing or subject to are great ways to go. Here is a link of what to avoid:

https://www.biggerpockets.com/...

   due on sale insurance Double LOL   get real.. such BS. although i think a commercial lender is far more likely to accelerate when a transfer of title has occurred than a resi mortgage.. out of the few hundred sub toos we did I only had one or two resi notes called.  sub too is not knew its just guys that are good at marketing and being gurus are packaging it and make it sound like they invested it LOL

 Don't "Get Real" to me! Brandon Turner and Bigger Pockets endorse this guy Pace Morby who they've had on the show several times and he claimed it was a real thing. Now that I've done a little digging I agree with you on the double LOL Get real! However, I think I was justified in asking the question when a trusted platform such as BP allowed this guy to promote his BS and as far as I know, has had no follow up. 

 Just an FYI  pod cast guests are not vetted or endorsed by Brandon or BP.. its entertainment and content.. I mean they had a pod cast with Clayton Morris who was the center of 10 million dollars of loss's with a majority of those BP members and he fled to Portugal.. BP did remove his pod cast though but it was after the fact..  I did a pod cast with BP but they dont endorse me etc etc.