Quote from @Jay Hinrichs:
Well 2 years ago it was BRRR this year its sub too.. I have personally done hundreds of these over the decades my dad started doing them in the late 70s when rate started to climb. then we sold them on wraps ALL inclusive Deed of Trust which is a CA specific document.
you will find it very difficult to land sub toos unless your working with distressed owners Generally speaking.. So this is why this strategy is coming up so much one because of why you want to do it taking over low interest loans and when markets start to have issues and owners have financial issues.
the KEY is finding sub too ANY EQUITY a lot of folks doing sub too will over pay just to land the mortgage to me thats not a good bizz model every deal we did could be flipped day one for a nice profit. other wise we passed. ITS very hard to do this stuff .. sophisticated sellers or any seller that talks to an attorney is going to have a hard time giving you title to their property but they remain on the loan.. thats your biggest hurdle.
Hey Jay, that makes sense if you plan on flipping but you can go higher on price if you are going to hold it for some time as a long, mid, or short term rental. As long as your strategy makes more than what you are paying, right? Also wanted to ask how does one go about taking over the loan payments. If the loan is still in the sellers name, does the buy just pay the seller and the seller pays the mortgage company? what if the seller stops making payments? Thanks in advance.
