Sub 2 Strategies

[Ross Scott]

Hi everyone! First post on this board.

I recently started doing sub2 deals and I am finding out that most homeowners do not want to hand the title over to me. I have been thinking about different exit strategies for a NO GO on a sub2 deal and I wanted to get everyone's opinion on this idea I have.

If the homeowner balks at my sub2 strategy, I would then suggest he/she sell to me via wrap and/or owner financing. Then I would assign/wholesale the property to a retail buyer. Does this idea sound doable?

[Andy J.]

Usually my next best option after a sub-2 is a lease option. Sub-2 is best for the motivated sellers, you may be just dealing with un-motivated prospects.

However, they may not be happy about handing over title NOT because of the transaction, but because of your approach. It can be a difficult pill to swallow for a potential seller, it is absolutely imperative that you focus on their needs and make them feel comfortable with YOU first.

I typically make them multiple offers when I want a Sub-2. Make them a cash offer, let's say for example 70% ARV-repairs, and then make them a Sub-2 offer, let's say 85% ARV - repairs. Now you're giving them options, and which option do they want?.......usually the one with the larger price (Sub-2).