Marketing for wholesale and sub2 simultaneously

Marketing for wholesale and sub2 simultaneously

Peoria, AZ · Member since 2012 · 51 posts · 10 votes

If you were looking for properties to wholesale and also a few to keep sub2, would you word your marketing (direct mail, signs, etc.) any differently than if you were just wholesaling or just looking for sub2? Or is it all pretty much "We Buy Houses Fast" across the board? It seems like a letter with "I would like to purchase your property at 123 Happy Lane for cash and can close quickly" is leaning more towards wholesaling, but I guess it doesn't matter if it gets them calling. You can always offer sub2 terms if they want a higher price or aren't as motivated to move quickly/cash out.

Also would you chose different filters from listsource.com if you were looking to find sub2 vs wholesaling?

I've read more about wholesaling and how it's structured than about sub2 deals and I guess I need to find more good reasources for learning sub2s - how to market for them and how to structure the terms in AZ.

I've searched the forums, but it seems like not as much has been posted about sub2 as there is about wholesaling. Maybe I'm looking in the wrong places.

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  • Rental Property Investor · La Plata, MD · Member since 2011 · 216 posts · 117 votes
    13y

    Richard, I just got my first sub2 deal. Came in off a cash offer direct mail. I am thinking about changing my wording in my direct mail, taking out the cash part that way I can do more sub2 deals. I am a landlord and I am running into maximum number of mortgages.

  • Investor Agent · Burke, VA · Member since 2014 · 243 posts · 12 votes
    12y

    Well done!  Do you mind sharing the details?  Did the seller reject a wholesale offer and then you offered the sub2?  Just curious how you set up the deal, paperwork wise...thanks!

  • Ellicott City, MD · Member since 2014 · 1 post · 0 votes
    12y

    I have been out of investing since the sub-prime issues back in 2006. Can I still do sub2 deals in Maryland? 

  • Rental Property Investor · La Plata, MD · Member since 2011 · 216 posts · 117 votes
    12y

    Kim, yes you can.

    Brian, the lead came from a direct mail card offering a cash deal for the property. The seller was out of town. This used to be his personal residence before he moved to Tennessee due to his work. His existing tenant was moving out and he was going thru a divorce. He did not want to deal with the property. The ARV was $225,000 but he owed $155K with a mortgage payment of $1150 PITI. I offered him $5,000 cash, transferred the deed to me, kept the mortgage in place for 2 years, did a light rehab and rented it back out for $1795 mo. My total out of pocket cash was around $11,000. It has been rented now for two years, I refinanced the property out of his name into mine. Since my main objective is cash flow, I use sub2 if there is equity and enough money between payments and the rental rate.

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