Sub 2 note owner finance

[James L.]

hey guys, so I have an employee that has horrible credit because of divorce. He wants to buy a house has down payment money, but can't get a loan. I think he is a safe bet. I was thinking about buying a house conventional. Then sub2 it to him at a higher interest rate. I guess can I do it?  And how would I do it? Any thoughts?

[Derek Dombeck]

Hi James,

If you Sub to this house, you are jeopardizing your credit for these people. In the subject to closing, your buyers will get the deed in their name while the loan stays in yours. If they don't pay, you will have to in order to preserve your credit, but you still won't own the house without a lawsuit against them.

If you are set on this, do a lease option or contract for deed with them. You will have a lot more control.

Whatever route you choose, I highly recommend learning all of the ins and outs before you get yourself in a bind.

Good Luck

Derek Dombeck