Don,  great points as usual from my cheap seats what I see coming down the pike and have personally experienced over the years in Sub to is this new crop of Guru pitching this form of acquiring real estate..

We’re actively acquiring properties with interest rates as low as 2-3%, even though current rates are nearly triple that.

Just a short list its like 50 ways to leave your lover there are 50 gothcas in sub to. 1. the easiest for everyone to understand the sub to violated the Alienation clause in the mortgage or deed of trust and holder of the mortgage DT / Note decides to call the note due and payable and starts a foreclosure. 2. foreclosure started and the person who bought sub to has no means to pay it off or refinance it and the original sellers credit get trashed and if its a deficiency judgement state even on an owner occ like Texas lender sues original seller for the deficiency. 3. this kind of investing or acquiring assets tends to attract those with limited resources so they have no ability to fix things they decide to scale up and then it goes out of control and sellers are really harmed4. deal goes south and original seller sues or files complaint with AG. 5.

But they’ve asked to come up with a solution since the loan isn’t technically assumable - something equivalent to acquiring the LLC that holds the property. 

I am thinking about actively trying to grow my investment portfolio and use my existing properties as leverage to acquire more properties.

I have experience as a commercial and residential real estate agent. and I'm working on acquiring a 28 unit mixed use building through owner financing, we just need some additional capital for the down payment. here's my advice for you and starting a portfolio.

The cost basis includes:Purchase Price: The amount you paid for the property.Renovation Costs: Add the cost of improvements and remodels that significantly enhance the property's value.Closing Costs: Certain closing costs related to acquiring the property (like title fees) can be added to the basis.You will then allocate the total cost basis between the land (which isn't depreciable) and the building (which is depreciable over 27.5 years for residential properties).If you're unsure about how to allocate between land and building, you can use the allocation percentage from your property tax records or get an appraisal.This post does not create a CPA-Client relationship.

In Columbus, Ohio, they acquired a local property management company and ran it into the ground.

Purchase price: $130,000 Cash invested: $33,000 Sale price: $225,000 Contributors: Peter Vekselman We acquired a home on Old Hickory Blvd, Nashville, TN, on 4/12/2024, for $130,000.

In every step I must fully disclose what I am buying and selling, i.e. in this case an equitable interest (the right to acquire title upon specific performance under the terms of contract).