Subject-To deals, short for “subject to existing financing,” involve the buyer taking over the existing mortgage payments on a property without formally assuming the loan. In this scenario, the buyer gains control of the property via a deed while the seller’s mortgage remains in place. This is one of the best real estate investment strategies that is particularly useful when the seller is facing financial challenges or needs to sell quickly.
This allows you to help the seller to get out from under their home!
For real estate agents, this is not a good strategy to offer to your sellers. This strategy leaves the seller at future financial risk for the mortgage, so I would not recommend it for that. If your seller is having trouble selling their home traditionally, you can consider Sandwich Lease Options. (Read more here: How to Approach Sellers With a Sandwich Lease Option (Offering Solutions that Sellers Need)
For those ready to learn more on Subject-Tos… Start with my book: Investing in Real Estate with Lease Options and Subject Tos (2023 edition). When you are ready to do deals and learn more on this topic, check out my course Get the Deed: Subject-To course gives you everything you need to get started! My course comes with video, audio and booklet training including step-by-step instructions for all forms and contracts needed.
Utilizing Subject-To Deals:
As an investor, buyer, or seller, understanding when and how to use Subject-To deals can be a game-changer. Here are some key scenarios where these strategies can be advantageous:
– When the seller is motivated to sell quickly.
– When the property has an existing mortgage with favorable terms.
– When you want to avoid the costs and time associated with obtaining a new loan.
– See more examples on when to use Subject-To at my previous blog here: How And When To Use “Subject To Deals”
Subject-To deals offer experienced investors in the United States unique opportunities to navigate the real estate market. By leveraging these creative financing tools, investors can gain flexibility, control, and potentially lucrative deals. However, it is crucial to educate yourself thoroughly on the intricacies of these strategies before diving in. Understanding the legal and financial implications is essential to ensure a successful outcome.
Remember, knowledge is power in the world of real estate investing, and Subject-Tos are a fantastic tool to have in your toolkit. Open the door to real estate investment opportunities by investing in your education on them first.
To Your Success,