Posted by Brian M. Powers(MI) on January 17, 2002 at 15:47:07:
Are the advantages of buying Sub2 substantially greater than buying on a L/O?
I’ve got a property that I am confident I could get the deed, and positive that I can take via L/O. My exit strategy on this property is to L/O out to a T/B.
By taking title to the property I’m theoretically placing myself in the middle of more potential problems (ownership liability, due on sale clause, etc.) than if I simply take via L/O aren’t I?
I see it as if I am buying Sub2 and taking title I am on the hook for much more than a simple lease agreement in a L/O.
Being a newer investor I know that my point of view on this is that of a “simpleton” and my lack of experience prevents me from seeing the bigger picture here.
So experts, please lay it on me!
BMP