It’s late November 2022 and the real estate investing world has changed a lot. Interest rates have more than doubled this year. Home prices remain sky high and unaffordable. Mortgage approvals have gotten more difficult rather than easier. As a real estate investor, what are you going to do differently to succeed in this new landscape…?
The answer you are looking for very well might be in “Subject To Deals” (aka Get the Deed).
Subject To Deals Work Well In Recessions
Housing markets with poor affordability, relatively high rates of unemployment, underwater loans, and foreclosure activity will be at risk if we enter a recession or even face a more modest economic downturn. Simply put… recessions are not pretty.
People make mistakes and need help recovering, which is what “Subject To Deals” (aka Get the Deed) is all about.
There are tragic financial situations that some (but not many) people will be facing in the coming year. Recessions cause people to become unemployed. When people become unemployed, too often, they can no longer afford their homes. I know that is tragic but it is also reality. When they can’t make their mortgage payment it is only a matter of a few short months before they go into foreclosure. No one wants to be foreclosed on and face seven years of damage to their credit rating. Or worse yet, ten years of bankruptcy.
You can wring your hands and spill tears over their bad fortune, or you can take action to help them out of a bad financial situation.
This where Subject to Deals become a helping hand.
Get the Deed Belongs in Today’s Real Estate Investor’s Toolbox
Imagine if you could buy a property, bank some money as soon as the deal is done, and help someone in financial trouble all at the same time. That doesn’t happen all 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 homes. 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, and 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 all other options. When their 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 foreclosure and derogatory events from a credit report and a 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 gone crazy with a long spending spree and all their money is spent. 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. A recession means that millions of people could lose their jobs. People have medical bills with little or no 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 unbelievably 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” is 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 infinite.
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:
- Get the Deed “Subject To.”
- Advanced strategies for Buying and Selling with Lease Options.
- Your Wealth Building Arsenal.
- Investing In Real Estate with Lease Options.
- Cooperative Lease Options.
- Add Personalized Coaching.
- Round it all out by Working with Realtors.
To Your Success,
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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