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.
Have you done any subject to deals since this post? I'm seeking to learn about this strategy right now.
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.