Monique,
I’ve done it. That is, I’ve sold homes that I got “subject to” to other investors.
But, I have the same concerns as you, so I prefer to sell them with either a L/O or Contract sale.
This gives me some control, and also some cash flow from it, even if small.
I did assign a couple of homes away by simply assigning the beneficial interest to another party, but these were people I knew well, and the sellers on these deals had said prior to me taking the home, “If you Jim do not take this house, we are going to just let the bank have it, we don’t want it anymore, or really care what happens to the house.”
I’d be careful assigning the ben. int. away though, you are right, some control needs to be kept.
Selling SubjectTo deals to other Investors - Posted by MoniqueUSA
Posted by MoniqueUSA on June 23, 2001 at 07:28:32:
For those who regularly buy Subject To … Do you ever sell your Subject To deals to other investors?
Since the Seller has made their decision based, in part, on their comfort in me, I’ve always been reluctant to have another investor take over the Seller’s payments directly.
A solution would be to sell the deal to another Investor on a wrap or take a small second just to retain rights as a lienholder to foreclose if the investor stops making payments on the Seller’s mortgage.
Has anyone else sold Subject To deals to other investors?
Did you stay involved?
Or did you simply assign the deal?
MoniqueUSA
…
PS: Why would we want to sell the deal in the first place? …
The inspection turns up more issues than we want to fix, where a rehab investor would have no problem with it. While we could use our inspection clause to get out of the deal, we’d prefer to sell the deal to at least recover our costs and time.
Or, if we have lots of houses on the market at once and could use some help in moving one or two quickly.