Dallas-Fort Worth Real Estate Investor Club

Wholesaling a property as Sub To

  • 16 Dec 2013 12:48 PM
    Message # 1459122
    Hey gang,

    I have two properties that I just put under contract.  In addition to offering them as cash deals I was hoping to be able to sell them off as Sub To's.  Anyone currently "wholesaling" properties as sub To's? 

    If you do, would you mind sharing what language you put in the TREC that allows the transfer of interest as a Sub To? I'm waiting for a response from my attorney on this and was hoping someone on-line could beat him to it.

    Thank you,
    Gorden
    Last modified: 16 Dec 2013 1:02 PM | Gorden McLaughlin
  • 17 Dec 2013 7:00 AM
    Reply # 1459627 on 1459122
    Gorden,
    After 13 years of doing "Subject-to" deals and the level of detail required for this type of deal I would caution you on doing what you are asking.  I'm not saying DON'T do them however it's my opinion that if you sell/assign to an in-experienced investor that doesn't know what he is doing or doesn't live up to his end of the agreement and maintain the payments you could be opening yourself up to a huge headache.  I take the "Subject-to" type transaction very serious with regards to protecting the sellers credit and doing everything in my power to ensure the payments are made and the investor you assign to may not, therefor opening yourself up to a problem.  "Subject-to" deals also have alot of moving parts/details to them to make them work smoothly and if the investor doesn't know how to handle them there could be alot of issues for both the buyer and seller.  With the correct highly educated and experienced investor, proper explanation, disclosure, and documentation you may be ok but be careful.
      
Powered by Wild Apricot Membership Software