Another Sub2 success!!

[Nick J.]

Doing sub2's work even in this market.

countrywide loan ARM @ 6 %
adjust in 11/11

$5,421.04 to bring current
$1,341.05 monthly payment PITI
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Saved homeowner from Foreclosure

L/O tenant contracted this morning

$ 15k down - $5,421.04 = $9,578.96 pocket money
$ 1500.00 monthly
+ 20.00 payment processing w/ credit reporting (clearnow.com)
+ 50.00 AHS warranty (ahswarranty.com)
= $1500.00 - $1341.05= 158.95 net monthly cashflow

Not a Huge cashflow deal however the option money is fine.

Deals like these are why I like Sub2's w/ L/O's

[Nick J.]

Thats a good question!
I don't mind answering that.

I am very pro-active in making sure my L/O tenants buy the property. All of my L/O tenants are referrals from mtg brokers and buyers agents, so I already know what their situation is and why they are not getting qualified in the first place.

Having said that, they are already warmed up to what it's going to take for them to qualify from those 2 inbound leads. They are required from to enroll and continue to be involved in a credit repair program. Also with clearnow.com it reports their payments to show positive marks on their credit.

I'm not worried about being sued by either party simply b/c I'm a disclosing son of a b...... to everyone. The previous homeowner is glad they are not getting foreclosed and in the sub2 addendum I have them read it out loud while they sign it.

The L/O tenant understands that they are expected to purchase the home within a specific time period.

There is always risk or what if's in investing as we all know, I just try to reduce that risk from the beginning.

Worse case scenario I'll short the second and modify the first
I hope that was somewhat helpful