I think you’re going to love “Subject To” deals (aka Get the Deed). Imagine if you could buy a property and bank some money as soon as the deal is done. That doesn’t happen all of the time but it does happen. Get the Deed has so many tremendous possibilities that it’s another “must-have” tool that belongs in your creative financing toolbox.
Subject To deals are about buying a property and keeping the existing mortgage in place. There are big benefits to doing this.
Sandwich lease options are certainly a powerful investment method for little or no cash and without taking ownership. Still, the Subject To deals, aka, Get the Deed method is another potent way to acquire property for little or no cash and no credit. With the very real possibility that the number of foreclosures will be increasing soon, now is the time to learn the nuts and bolts for getting the deed subject to existing financing.
As an ethical real estate investor (and problem solver), you come into these deals as a “Knight in Shining Armor!”
Ethically Investing with Subject To Deals (aka Get the Deed)
Does it sound strange to be taking over a property for no money and no credit by keeping the existing financing in place? Your first thought might be that I’m encouraging you to rob or scam people out of their hard-earned home. But I’m not. The fact is that you will be helping people out of very difficult situations at a time in life when they need help the most.
Stop for a moment to think about the reality of a mortgage going bad (a looming foreclosure). Obviously, the person is in dire financial straits and doesn’t have many options available. If they have a few months, and if the house is in good shape, if they have enough equity to pay a realtor’s commission, and if the local real estate market is humming along, they could list the house for sale to get out from under the mortgage before foreclosure. There are four “IFs” in the previous sentence. It only takes one of those “ifs” to not come true for the owner to be out of other options. When the options are gone is when an investor offering a Subject To deal becomes the Knight in Shining Armor. Here is why…
If the seller wants to buy another home in six months, next year, or in three years, they will need a good credit score and can’t have a foreclosure or bankruptcy on their record.
Subject To deals… aka Get the Deed Subject to Existing Financing is how the owner avoids destroying their credit rating for the next seven to ten years. It takes seven years to remove derogatory events from a credit report and foreclosure or bankruptcy stays with them for ten years.
Here are some of the reasons an owner might desperately need what you are offering…
Many Reasons Why a Seller Wants a Subject To Deal
If you are financially savvy and budget-conscious, you may not realize how many different ways people get into a financial jamb that they need to get out of quickly. But we all know that bad financial times fall even on good people. Here are some of the many situations where you can step in to rescue someone from bad circumstances.
The broadest category is whenever an owner has fallen behind on the payments and will never catch up before the bank demands full payment. It could be that a spouse has kind of gone crazy with a long spending spree and all of their money is gone. This gets even more desperate for the owner(s) when a divorce is looming and neither spouse even wants the house anymore. Both just want a fresh beginning. Both agree that Subject To Existing Financing is the best solution!
Subject To deals work almost any time the owner is financially strapped.
It can be any financially strapped owner. We all know that millions of people have lost their jobs and recent reports are that most of those jobs are not coming back. People have medical bills without insurance. Business owners are struggling to keep their business doors open and decide that an income is a bigger financial priority rather than staying current with a house mortgage. Or it could be something as simple as the owner took on a bigger mortgage (or second mortgage) than they can financially handle.
A seldom thought about reason is that the owner already has damaged credit and when you take over making the mortgage payments (while keeping it in their name), it helps rebuild the previous owner’s credit report using your on-time payments (knight in shining armor). When it comes to money, there is no limit to the number of ways that people can get into very bad situations. Many are situations that are best solved with a Subject To deal!
Reasons Why Subject To Deals Work for You
This is another long list that I can only partially cover here but is covered in detail in the Subject To deals, aka, Get the Deed course materials. Let’s start with “Subject To” as the fastest way you can build a portfolio of income-producing properties. Because you are not applying for or taking out loans in your name, there is no limit to the number of properties that you can have under your control.
You never have to qualify for a mortgage so you can control as many houses as you want.
How much higher can your return on investment (ROI) get than when you don’t have any money in the deal? If you truly have no money in the deal, your ROI becomes unlimited.
As the knight in shining armor who brings a Subject To deal, aka, Get the Deed deal to the table, the owner is helped and will thank you. There are situations when the owner is so thankful that they will leave money in the deal so that you have instant equity, walk away with cash in your pocket, or both. This is one of the best ways to build wealth at break-neck speed.
No income, no credit checks, and no mortgage qualifying required!
You’ve read the blogs, you know others are doing it, and it’s time for you to take action NOW:
- Investing In Real Estate with Lease Options.
- Advanced strategies for Buying and Selling with Lease Options.
- Your Wealth Building Arsenal.
- Add Personalized Coaching.
- Cooperative Lease Options.
- Expand to Get the Deed “Subject To.”
- Round it all out by Working with Realtors.
Happy Investing!
Wendy Patton
For more than 30 years, I’ve used the Sandwich Lease Option System to earn myself and my students millions of dollars. From my experience, I know there is plenty of room and opportunity in the real estate investment market for everyone wanting to participate to find profitable deals. It’s because of that fact and my personal success that I share the Sandwich Lease Option System with others.
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