I just recently purchased a property Subject To with no money down.!! I found a distressed seller who had just recently evicted tenants that hadn't been paying, and they were completely fed up with being landlords.
They were current in payments, but we're ready to be done with the property. I educated them on how subject to works, and they were all for it!
Numbers are as follows:
Remaining mortgage balance: $26,000
Interest Rate: 7.5%
Within two weeks, and before my first payment was due, I was able to find a contract for deed buyer.
Numbers are as follows:
Sale price: $54,000
Down Payment: $6,000
Monthly Payment: $650 for 11 years
Interest Rate: 6.9%
I basically got paid to purchase this property, and everyone is happy. The sellers got rid of a headache, I purchased another investment property, and my buyer is now a new home owner.
I know a lot of investors talk about the $30,000 investment properties, but so far I've had success with properties in this price range. I have a contact with thousands of buyers looking In this price range so it's pretty easy for me to move them quickly!
I did have to put about $500 into the property. Getting it cleaned up (250) and getting the furnace serviced (200), but other than that this was a no money down deal.
These deals do exist!! You just have to get out there and be active! Tell everyone you know that you buy and sell real estate, and deals will slowly start rolling into you. Educate yourself by being on Bigger Pockets and listening and learning from their Podcast, and success will soon follow.
@Brandon Jackson Congrats on the deal!
congrats on the subject to deal.
Thanks @Brie Schmidt . I'm a little late on seeing this, lol. I've actually since originally purchased this, sold the note to another investor and got a lump sum of cash from him, and he's getting a RIDICULOUS return on his money. He now receives the payments from the buyer, and everyone is happy.
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