What do you do to find Subject To properties?

[Eduardo Beltran]

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]

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.