How can I fund a subject to deals with private funds?

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Hi Edna, Nice question but its confusing! Subject to is the most complicated creative deal scenario there is IMHO. I do sub tos too and help others. I have a give away Sat training I used to give I'm willing to share that covers the docs needed (POA, seller affidavit etc).

Since you are buying, the warrantee deed needs to be xfered by a title office or closing attorney, costing $1k to $2k depending.  This is out of pocket cash that can come from anywhere.

There are no other costs to buy subject to, other then possible giving the seller some moving cash at closing.  This is pocket cash too and can come from anywhere.

Typically you'll need to fix up a deferred maintenance, run down house. Here is a possiblity of using private lenders if you don't have the fix up. BUT all yuou have to offer is a private (not filed) JV agreement or a 2nd lien. Most private lenders who are experienced will NOT take 2nd lien. Some might if there's alot of equity to protect the 2nd lien. So yes priave money, relatives, etc, can fund a subject to purchase,,, but there's some hitches due to the 1st mortgage staying in place.

If you don't have any cash and the house will cash flow nicely then offer to split the cash flow and future gain upon sale. Some subject to buys end up being flips if the numbers work. Offer a split in that scnario too. Most likelyu lenders are relatives who know you, or fellow REIA (local boots on the ground experts hang in local REIAs) who both know and trust you and know the area of this house etc. Trust and highly profitable makes such a deal work.