"Subject-to" Fix-n-Flip: is it possible?

[Mona B.]

Hi BP Community! Question: Can you fix-n-flip a "subject-to" property or could you really only BRRRR a "subject-to"? Does the "due on sale" clause go into effect if the "subject-to" property is sold after rehabbing it?

Side question: does anyone have successful experiences completing “subject-to” deals with on-market listings & working with listing agents – especially in FL? Is the property owner responsible for the listing agent’s commission?

[David M.]

@Mona B.

You should be able to..  Why don't you think so?

You purchase subject-to, fix it up, then sell it.  Now that subject to mortgage is satisfied by the sale and you SHOULD have the remaining "profit" for yourself if the deal went well.  The due on sale clause is a moot point since the loan is paid off when you sold it after the rehab...

Remember, subject-to deals are pretty risky for the seller, and if not handled correctly, can present a problem for the buyer/investor.  These sorts of "creative/advanced" techniques only work in certain situations.

Good luck.