"Subject to" deals

3 Replies

Hello everyone beside the property I bought to use as my primary residence I have never done any real estate investing. I don't have much money and my credit is tied up in my current home, so I was supper excited when I learned about "subject to" deals because I always wanted to invest in real estate and this may be my way to get into the business.

I Listened to both podcast #2 and #70 as well as reading forum posts on "subject to" deals. But I still haven't seen an example where the investor sells the property to a retail buyer, only lease to buy. My questions is, can buyers get traditional bank loans to buy these properties from the investors. I have an opportunity to buy a property "subject to" and rehab it ( the sellers can't afford the rehab themselves and agreed to a short sale with the lender). If I get the property and do the rehab I could net close to 50k if I resell to a retail buyer, but I don't know if buyers can get traditional financing. Also can anyone tell me what closing looks like when reselling the property. I already contacted a real estate lawyer about the legality of the deal and he said everything is good.

Originally posted by @Justin Hammond :

@Lionel Mosby Jr, I may be able to help. I have done well over 100 of them and still own about 30 of them as rentals. Let me know if I can answer any questions!

@Ramesh Ramdatt also curious if you ended up doing the strategy?

Thank you! Sent you a DM but will post here for others to benefit as well. I'm looking to start investing and I have two strategies that I'm looking into to acquire my first property. I've recently gotten engaged so I know that this next move can't be as fixer upper as I'd probably do otherwise. It can need some work, but not much. The property will be a SFH with garage apartment or a duplex. Strategies are: 1) House Hacking with FHA 3.5% down or Owner Financing with 15-20% down OR 2) Subject-To with catching up payments & providing owner some cash (maybe 5k?). I'm leaning more toward the subject-to deal structure because I like the idea of dealing directly with the owner and bypassing having to get a lender involved.

I feel like I need to get a better grasp on how to structure the subject-to deals and how to go about finding these type of leads. Also, what type of cash do you think I'd need to do a subject-to deal? I would be looking for something that has an original loan below the $200k price range so that I could handle the payments & preferably something that could be rented out & cash flow on the back end.