Why is BRRRR better than creative finance?

[Mike Schorah]

Seems like BRRRR is way more popular. Why are so many people scared of sub to deals?

[Jaron Walling]

I wouldn't use the term scared; it's just most investors don't want the hassle. We would rather buy a distressed property (for the right price) and have not strings attached. If a good deal is created a massive hurdle must have been knocked over. We can find capital for a rehab (PM or out of pocket) and refinance on my own terms. Speaking to the LTR crowd the higher rates don't bother us as much. As investors we factor it in before making offers. 

The main challenge (I believe) with sub-to is finding sellers willing to entertain it. Given this stalemate market were experiencing it's pretty hard find those sellers. Motivated sellers are listing on the MLS. Not much motivation to do otherwise. Some buyers in specific markets are upside down on equity but there not behind on payments.