What do you do to find Subject To properties?

Question

Hello everyone :)

Just thought I’d ask. What do you do to find great Subject To investments? I’m curious to know how creative you guys get.

Greeting from the Dallas/Fort Worth area in Texas :D

Don Konipol · Answer

Most sellers willing to accept subject to deals these days have no or a very small amount of equity in their properties. look for VA, FHA loans, or conventional loans with PMI which types have a lot of 3-10% down payment loans. If these were 30 year amortized loans and are 5 years old or less, and the area prices haven't appreciated much, then you have a scenario where the seller might need to bring cash to the closing table if he utilizes the services of a broker, has to make repairs, is in arrears on his loan, etc.

you won't be getting a bargain price, but you will be getting a property with built in high leverage. Be prepared to carry a negative cash flow for some time until rents rise sufficiently to cover the neg.

Don Konipol · Answer

@Eduardo Beltran

As you can tell from the responses, the people who regard finding profitable SFR investments seriously and as a business, spend ALOT of money on marketing. To these professionals it’s not a part time gig, but there full time business.

Monica Breckenridge · Answer

@Eduardo Beltran I send out my Pink We Buy Houses postcards. I have the color pink Trademarked in real estate and it is my branding. I bought over 100 sub 2 properties using this strategy. The homes that I didn’t buy I had my company list the properties and we got a commission. I own both an investment company and real estate company.

Paul T. · Answer

Following. @Eduardo Beltran for what it's worth, I'm using PropStream and it allows you to set filters and you can see the loan info.

I agree with @Don Konipol, the only sellers I've encountered who will entertain the idea of a sub-to are those seriously behind on their mortgage, or those who have no equity to pay a broker for a conventional sale.

Monica Breckenridge · Answer

@Paul T. i have done all of those. Right now I just send out my postcards to a zip code. I will spend anywhere from $3k-$10k a month when being aggressive.

Paul T. · Answer

@Monica Breckenridge What kind of houses do you target? Preforeclosures? Absentee owners? Expired listings? What do you find works best?

How many post cards do you send out each month?

Eduardo Beltran · Answer

@Don Konipol

Thanks for the great information Don! Can i ask a follow up question? Do you finding these VA or FHA mortgages through an MLS or are therre other ways to find loan that have the specific parameters that you stated?

I’m definitely open to getting into a Subject To home and renting it out or doing a Seller Finance. Wish i could then do a Lease Option on it, but Texas is just not the state to do that in.

What do you do to find Subject To properties?

What do you do to find Subject To properties?

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