Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Creative Real Estate Financing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 7 hours ago, 12/18/2024

User Stats

24
Posts
19
Votes
Otto Kinn
  • Investor
  • Garrison, ND
19
Votes |
24
Posts

Best Strategy for Acquiring Subto VA Loans

Otto Kinn
  • Investor
  • Garrison, ND
Posted

Quick preface, I'm a cash home buyer. I do 20-30 flips/wholesales per year. I've largely stayed away from the "sub-to" buz word, but I have done a couple sub-to flips knowing that I only needed to hold onto them a couple months and I was prepared to pay off the notes if they were called.

Sub-to for long-term hold on the other hand has me nervous. 
HOWEVER..
I'm getting a fair number of deals with significant cashflow and equity that make these amazing buy-and-hold opportunities at 2 and 3% interest. So I'm strongly considering adding a handful of these to my buy & hold portfolio.

I understand that there's no "risk-free" method to acquiring these properties subto, but have any of you had success over the long-term acquiring properties with VA loans attached? How can I best protect the seller as well as myself? Should I explore putting these properties into land trusts? (I'd love to just do a regular assumption on these, but I've more or less maxed out the number of houses I can buy in my name already)

What I've done on these sub-to deals in the past:
1. Bought on Contract For Deed and only recorded the notice.
2. Got property specific PoA. (to protect my interest if seller is unreachable in the future)
3. Got added to the property insurance policy as additional insured.
4. Received access to mortgage portal to ensure all payments are made (including escrow).

Anything else here I should do or not do if acquiring for the long-term?

Alternatively, do the risks outweigh the benefits of $500+ cashflow plus 30% day one equity and less than 2k out of pocket?

Loading replies...