houses 50/50 debt equity

[Miguel Gutierrez]

Hello,

Im an aspiring Real Estate investor..and I appreciate your feedback to know what could be a good strategy and still being creative if you want to buy a deal with good equity but still important debt? 

theres is a combined strategy for subject to and seller financial?

Thanks in advance for your comments 

[Chris Seveney]

Quote from @Miguel Gutierrez:

Hello,

Im an aspiring Real Estate investor..and I appreciate your feedback to know what could be a good strategy and still being creative if you want to buy a deal with good equity but still important debt? 

theres is a combined strategy for subject to and seller financial?

Thanks in advance for your comments 

 Mguel

Can you clarify one thing, what do you mean be creative with good equity but still important debt? 

One thing to understand about debt, there is good debt and bad debt. Understanding the dynamics of debt financing for a home is crucial. A significant down payment reduces the risk of default. Statistically, individuals who invest more upfront in their property are less likely to default. This is partly because a substantial down payment provides an exit strategy, such as selling the property, if financial challenges arise. 

Moreover, the discipline required to save for a large down payment often reflects better financial management skills. It's always wise to assess one's financial readiness before committing to such a significant investment.

So whether you go sub2, seller financing or some other method, its all debt - just a matter of who is providing it. But if you are trying to get sub2 with seller financing and go all in with no money in the deal, as I mention your chance of failure is significantly greater.