Subject to

[Erick C.]

Hey bigger pockets nation,

My name is Erick Castelin and I am a brand new investor (also new to Bigger pockets) i'm located in Clermont, Florida... it's on the outskirts of Orlando, Florida. I'm looking to buy and hold properties acquiring them through the "sub to" method. I'm getting the part where you purchase the home (take ownership of the title) subjected to the seller's existing financing and doing so i understand a buyer would be helping the seller out in some aspects.

But there's also the part where some sellers require some type of cash from the process. I've read one of Josh Dorkin's posts/articles somewhere here on BP(unless i'm misunderstood) that he doesn't favor writing a check to the seller or using the property's equity for that purpose, instead he rather give the seller a promissory note stating that he will pay the seller within a certain period of time after the property has been sold.

The thing is I'm planning to buy & Hold so i won't make any substantial gains to pay the seller with and i don't have money handy to just write checks... So my question is, Should i acquire a home through "suject to" what are my options to come up with money to satisfy a seller wanting cash out of that deal???

Thanks in advance.

[Account Closed]

Erick,

Welcome to BP it is a great place to get your questions answer. On the subject 2 be careful the bank might have a clause in it and they will find out as soon as you record the deed in your name and you get insurance and the lender could call the loan due. If you don't give the seller any money to do the subject 2 what is in it for the seller and you could damage the sellers credit if you don't pay.

Joe Gore