Posted by Jason (AL) on May 05, 2006 at 19:46:36:
Interested in sub2 deals and you’re 24?
Seems like we have a couple of things in common.
As far as sub2 deals having little equity, generally, this is not the case.
You don’t HAVE to purchase houses with little equity subject-to.
It works with either little, “mediocre”, or a ton of equity.
Personally, the majority of my sub2 deals have fallen in between little and “mediocre”. Of course, houses in my neck of the woods are 10 times LESS than what you’re talking about in your area.
Besides, it’s not like I’m going to find houses with $20-$50k in equity all day every day.
Given this, MY risk is lower (lower prices), most other investors are fighting each other for those few and far in between high equity deals, and I know how to make $$$ on the deals I’ve done.
If you feel that if you purchased one of these houses in your area subject-to and thought it was going to sit on the market for months and months…well, would you feel comfortable being responsible for someone else’s loan obligations…and do you have the necessary funds to keep your deals afloat in the meantime?
Not trying to discourage ya, just keeping things real.
Don’t jump into risks and obligations you can’t handle.
When you start in the great biz, I want you to experience success, not peril.