question on subject to's vs lease options

Hello, femailceo.

I haven't used Greg Murphy's methods yet, but you're right. I believe "get the deed" and "subject to" are the same thing. And of course, each situation is guided by the needs of the seller, so each situation is crafted differently and special to their individual needs.

Many homeowners are stressed out and just want closure on getting their house sold and putting it all behind them, so a lease option may not be the best answer for their situation. While others may be willing to go with lease option, if it's the best or only thing that works for them.

In watching Greg, you realize he's such an easy going guy and that's likely his way of operating when he's negotiating. He certainly makes it a win"-win-win for everyone.

In the other forum post, you mentioned the TotalViewRealEstate Website. I'm so glad you reminded me of that. Recently I've been thinking about that Website. Thanks for reminding me to go there more often.

Thanks also for your continued contribution to this Website. I always look forward to reading your posts.

Patrick

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Be your very best always-Judy Williamson

Yes, it is a great site!

I still have a hard time wrapping my head around Subject 2 to a bad credit buyer. If their credit is so poor, that is an indicator of a consistent inability to pay for their debts. If they default on the property purchase, it would seem that a Subject 2 puts the original owner in a real pinch.

Hi, I'm glad to see more discussion on this subject. You're right, campbelsimon. If a person is going to default on the Lease Option in the way that Greg Murphy does it, if the tenant buyer defaults, the original owner would be in a bit of a pickle.

If I understand the videos that I've seen of Greg Murphy, he has two set of buyers lists. One is for his wholesale buyer. The other is for his buyers that need housing and might not otherwise be able to qualify to buy a house. That's where his power team comes in. First, Greg interviews the prospective tenant buyer to see where they would fit in qualifying for a mortgage, or even if they will qualify. That way he doesn't waste the time of the mortgage person if the person will not qualify at all at this time.

Then Greg sends the prospective tenant buyer to the mortgage person and the mortgage person has them fill out the paperwork and lets Greg know about how long the tenant buyer will need to qualify for a mortgage, which will at that time get the mortgage out of the original homeowner's name.

Greg has the two buyers lists, which he is constantly building. Probably the bigger of the two lists is the prospective tenant buyers, who will see his flyers in the laundromat or at the convenience store or in the local throw away paper and call to inquire about how to qualify to buy a house when they believed that they were likely shut out of this market, possibly permanently. So if someone defaults, which isn't very likely considering the screening that has been done, he has a big list that he can check and see if there is someone on the list that he can put in the house almost immediately.

The mortgage person with the help of the application process helps Greg sift, sort and screen to decide who's a risk and who is not. Since many people get a lower credit score and "dings on their credit" for all kinds of reasons, including family or individual medical issues or the house they bought became a huge upside down problem, it doesn't necessarily mean that they are deadbeats when it comes to paying their bills. Greg gives some people a great deal of hope in the small town that he lives in.

Patrick

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Be your very best always-Judy Williamson

that about sums it up, but he does say he has a program for "everybody." Still my question is why he says it is a lease option vs a subject to?

one investor may call it a lease option while another investor may call it rent to own... in this case one calls it a subject to.

whatever deal you may take on to relieve a seller from a burden and/or help a buyer with credit issues to purchase a property, you have to make it work for everyone involved in the deal.

As long as you understand what you're trying to do and are able to explain it to the seller and buyer, and it's done right and legally, I don't see what difference it makes what other investors call the transaction.