Summer 0 Report post Posted March 4, 2003 Hi! I happen to be reading a book on "SubjectTo" (the existing financing). The basic concept seems very similar to L/P, however the biggest difference it that it is suggested to get the title in your, the investor's, name. Is this to be able to have the tax advantages of owning the home? It just seems that the process of "Subject To" has an abundance of forms/contracts, making payments on seller's cars, etc.L/P seems much simpler, cleaner. Am I missing something or is my observation correct? Thanks!Summer Share this post Link to post Share on other sites
MichaelC 160 Report post Posted March 4, 2003 Your observation is correct. Subject To does require more work, more paperwork, and a more motivated seller, in my opinion. In effect, you are asking a homeowner to turn over their property title to you while they remain on the record as the responsible party for payments. Meaning, if the investor fails to keep up with the payments, that homeowner is the party that the lender is coming after even though they no longer own the property. You can see why I say the seller needs to be highly motivated, much more so than a homeowner who is willing to do a lease purchase.A Lease Purchase is much simpler and quicker.But, like most things in life, there are two sides. Subject To practitioners will tell you that this method of investing and buying properties is superior because you are taking title and control. It's a judgement call and a personal preference matter. Neither one is the best way. Much depends upon the specific situation. Having the know how to work both techniques gives you the possibility to close a deal that otherwise might have gone away. Share this post Link to post Share on other sites
Summer 0 Report post Posted March 4, 2003 I definitely see what you mean when you say having two different "tactics" known can save a deal. However, I think for now, as a beginner I would like to concentrate on just one method - Lease Purchases - and get that comfortably under my belt before adding anything else. Once I feel very comfortable and confident with one area of REI, I think the others will just start falling into place as the opportunity arises. Thanks!Summer Share this post Link to post Share on other sites
gone2vegas 0 Report post Posted March 4, 2003 Michael, Your reply is very impressive. I say that because you aren't the typical gung-ho, ram it down your throat type of real estate investor who rants and raves about one method of investing. That alone makes me more eager to learn your style of investing. I agree that it is good to have several tools in your real estate investing toolbox so that you can handle different situations. That's what I've been trying to do for the past 6 months, acquire different tools. Unfortunately I haven't had a chance to use any yet. Just thought I'd give you "props"(as the young folk would say). By the way, just got your course this weekend(actually under my fiance's name, Candace). Looking forward to putting it to use here in Orange County, CA. Peter Share this post Link to post Share on other sites
MichaelC 160 Report post Posted March 4, 2003 Hi, Peter. Thanks for the kind words. Nah, gung ho, I'm not. I realized long ago that one size doesn't necessarily fit all. I love lease purchasing, and it's been very good for me. But, I also know that not every homeowner is going to do hand stands over the concept, no matter how I present it. That's the real world. That's why, in my manual, I suggest different strategies under the lease purchase umbrella, so to speak. Different degrees of motivation require different strategies.And if a lease purchase transaction is flat out rejected by the homeowner, it certainly benefits us to know more than one technique.Peter, so you are Candace's other half? Or, is it better half?? Glad to hear you received the manual. Put it to use and let me know if you need any help. That's what I'm here for.Summer, I agree that lease purchasing is a great way to begin in real estate. It is not technically difficult, and doesn't require complicated paperwork, attorneys, cash, etc. But, you know that already.I agree it's a good idea to learn one method well, use it, gain some experience, and then move on and become well versed in other techniques. Maximize your abilities to help homeowners and you'll be thought of as the greatest thing since green chile! Share this post Link to post Share on other sites
Summer 0 Report post Posted March 5, 2003 Thanks Michael! Oh, and I like your New Mexico humor! (Green chile)However, tonight I'm cooking cajun for Fat Tuesday! Share this post Link to post Share on other sites
