Subject to then wholesale?

[aares]

I was talking to a friend of mine who is a regular wholesaler. I mentioned subject to, and he said it was a good way to invest. We were talking exit strategies, and he said you could sub-to and rent, or sub-to and sell to another buyer.

I really do not want to be a landlord because I am a full time student and I do not want to deal with whatever problems may arise, but I am interested in sub-to then wholesaling, if you call it that.

So, how does this work? You take a house sub-to, make the payments until you find someone who wants to buy the house? What if no one wants to buy the house? Or do you only take houses sub-to when the owners dont owe 90+% of the mortgage?

I just dont get it...how do you know if a house is a good one to sub-to or not?

Thanks guys.

[aaronwilliams123456]

You need to ask the people who will be buying the houses subject to. Ask investors at the real estate meetings what price they are buying "subject to", ask the investors at the auction what they are paying, once you find this out you'll be able to make offers to homeowners with confidence, ask new home buyers who can't qualify for a loan, run an ad in the paper, "seller willing to let new buyer take over payments, call 555-5555". when they call tell them the house sold and say you come across them all the time and want to know what their criteria is.

[motiv8td]

aares, 'Wholesaling' a 'Sub2' deal is the easiest thing to do!!

You don't need to wholesale it to another investor, you can wholesale it a retail buyer and collect the down payment they would have as the assignment fee, very similar to lease/options co-ops that people do.

I do this a lot, but I know not to solicit on this forum, so I'll just point you to my signature link