Sub2? What is that?
Well, sub 2 is short for subject to the existing financing. It is a popular way to buy property without using a bank.
We also use Land Trusts.
We can couple subject to purchase with a note. This note can be no payments for 5 years and then a balloon payment.
Some people are nervous about subject to.
They’re worried about the due on sale clause.
Well if you search this site about the due on sale clause you will see a lot of information. See FAQ Sub 2.
