Innovative Strategies
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated about 6 years ago,
These guru's must be stopped. What's going on here?
Hello all,
After doing a ton of research, it seems to me that real estate investing gurus and their "subject to" teachings are going to turn good people (ignorant people) into felons. Just because someone is ignorant, doesn't make them a horrible human being. It seems to me that good and perhaps slightly desperate folks are drinking the "subject to" Kool-Aid.
They're teaching people to "acquire" property using "subject to" and cash flow it via lease options. I've consumed copious amounts of content on the subject - free and paid.
I notice these folks conveniently ignore what can go wrong when Bob pays your lease option fee, first month, and security, then loses his job 12 months later. They don't tell you what to do then, and that depending on the state and the number of these deals you have running, you're instantly a felon when you fail to make payments and the home is foreclosed on.
They don't tell you that you cannot evict Bob because he has equitable interests in the title and it can take 120 days or more, plus legal fees, plus repairs, plus MORTGAGE payments, to finally get him out of there.
I was sitting here planning to lease option my primary residence and I wrote down my "doomsday scenarios" and realized that I have to spend more money than I thought for legal help to understand and / or mitigate the risks...
I'm wondering how this subject to --> lease option business has not been exposed for what it is - a minefield rigged against those who are bad at risk management. What are you guys' thoughts?