Subject-to deals give you the deed and full ownership, while lease-purchases only give you an option to buy. With ownership, you can depreciate the property, refinance it, or rent it out. Lease-purchases are cheaper to start but lock you into fewer options.
Chapters
What's the primary difference between sub-to and lease purchase? Is it cashing the seller out upfront for sub-to? That's one thing. There'll be— Zach and others can chime in on this. A couple things I thought of. One, control. When you get to a payday 3, the seller has to sign the deed. That's why we cloud title, to our earlier conversation, right? With a notice of option. But it's just another step. You have to— they have to sign it. We've had sellers pass away, we've had sellers divorce, we've had sellers leave the state, we've had sellers leave the country. So we've had it all, and we've got them all closed. But if you own it, you're not chasing anyone. You're it. Okay? Accounting. I think I alluded to it earlier. You're going to depreciate that asset now. When you close out a Payday 3 in a sandwich, you're going to get a— you're going to be— most of you are going to be higher— we are too— higher taxed. It's like self-employment income. It's just like you're not depreciating or writing off anything in a sandwich. You're getting a net amount, period. A lot of advantages to sub to. What else? Wealth stacking. You own it. Like Zach was talking about earlier, our deal. So we can do whatever we want. We can finance the buyer. We can— Rent it, which you've done that before. You can do anything you want. So many more advantages. Brian, it took you 10 or 11 deals to go, oh, that'd be really cool to own it instead. After you did 10 or 11 deals, got to $1 million, now the light bulb went off. It'll go off for everyone. Some of that's, in your defense, some of it's, um— Strategy. In your palate. For, uh, $10 on lease purchase, I can control it? Cool, easy. And that's the truth. I would agree with you on that when you're brand new. So,
