Our First Sub2 Deal!

[Chris Tarpey]

Investment Info:

Single-family residence buy & hold investment in Jacksonville.

Purchase price: $101,000
Cash invested: $8,000

This property was bought subject-to from an out of state seller. House needed a bit of repair after sitting vacant for 2 years. we worked a relationship with a contractor/tenant for discounted rent in exchange for his labor renovating the property. More to follow!

What made you interested in investing in this type of deal?

First experience with a sub2, low personal capital investment.

How did you find this deal and how did you negotiate it?

Driving for dollars. I gave this address to my wholesaler who I have a relationship with where every lead I give her that she gets under contract, I have first right of refusal.

How did you finance this deal?

This deal is a Sub2, taking over the sellers existing mortgage. The only cost incurred is rehab materials and assignment fee/closing costs.

How did you add value to the deal?

We plan to renovate the property and rent it out!

What was the outcome?

Currently leased to a contractor/tenant, doing the work to renovate the property for a discount in rent.

Lessons learned? Challenges?

Definitely interesting and a new experience working a sub2 deal. Very grateful for the experience of our closing attorney throughout this process.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Best closing attorney for sub2 deals in NC...Cox Law.