Getting Properties with “Subject-To” Financing

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Welcome to the world of “Subject-To” Real Estate Investing! In this blog post, we will explore the concept of acquiring properties with little or no money down by buying them “Subject-To” the existing financing. At the end of this blog, you can watch my FULL Subject-To presentation. 🙂


“Subject-To” real estate acquisition involves purchasing properties that already have an underlying mortgage in place. While there is a transfer of ownership at closing, the mortgage remains unchanged. As an investor, you can take advantage of the existing financing, which is often the best option available for a property.


You might be wondering why a seller would sell a property but still keep the mortgage in their name


The answer is simple – they need to get rid of the property. As an investor your role is to relieve them of this “major headache” for whatever reason they have.  We are there to solve a problem for the seller. 


However, it’s important to note that the seller must be motivated because the mortgage will still be on their credit report until it’s paid off. This means that you may not pay off the loan for years. 


You have various options for dealing with the property, such as:

  • Leasing it

  • Assigning it.   (NO do not do this with a Subject To – otherwise the seller is not really protected by that new buyer)

  • Lease Optioning it to a Tenant-Buyer

  • Selling it outright

  • Move into it


The seller trusts that you will make their payments and protect their credit, which is crucial for maintaining ethical and legal practices in this business.


To help you navigate the process of acquiring properties “Subject-To” the existing financing, my course provides all the necessary forms/contracts along with audio/video instructions. However, it’s advisable to consult an experienced local real estate attorney to make these documents state-specific for you.


If you’re new to the concept of Subject-To deals, I recommend reading or listening to my book, “Investing in Real Estate with Lease Options and Subject-To Deals.” This comprehensive resource will provide you with a thorough understanding of Subject-To real estate investing and help you determine which forms to use and when.


Given the increasing number of foreclosures and the growing importance of credit scores, people are becoming more aware of how crucial their credit scoring is. As an ethical real estate investor and problem solver, you have the opportunity to be the “Knight in Shining Armor” who relieves their headaches and saves their credit. So go out there and find some low-interest rate or already paid-down mortgages!


Happy investing!

To Your Success,

Wendy Patton

Watch My FULL Subject-To Presentation Below!

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