Has anyone purchased a home using “Subject To”

Question

I’m curious to hear from any investor who purchased a home (or many) using “Subject To”. What were the terms of the deal? And how did you identify if the deal was a good one?

Robert Gilstrap · Answer

I've done about 35-40 of them. Very few docs needed to close: power of attorney, disclosure, etc.

The only math I use on a sub-to deal is can I rent it out for more than the payment and of course the details of the underlying loan are important to me. How old is it?, fixed rate? etc.  If you only take sub-to deals that give you $200/mo. positive cash flow you won't be doing very many of them. Sub to is a long term proposition, get rich very slow but it does work.

Marc S. · Answer

@Robert Gilstrap

Marc S. · Answer

@Robert, did you have an opportunity to purchase a home using the “Subject To” method? I’m curious to know what documents you used to seal the deal (ex: what contract document, I’m guessing a subject to document, any other documents?). Also, what math did you use to consider if the deal was good for you? I hear some people say as long as one can net $200/month if planning to rent the home, it’s a good deal. Is that the only measure? If you have any other questions, please let me know. Thanks in advance.

Robert Gilstrap · Answer

@Marc S.  Your question is pretty broad; what are you trying to understand or get at so posters can effectively reply?