Can you do subject to with high equity homes?

Question

Where can I find a quality acquisition manager? And also what are the possibilities of getting a house subject to with high equity?

Andrew Syrios · Answer

You can, it's just you will either have to 1) put down a large downpayment which takes away much of the upside of a subject to or 2) buy the house under market value, which will usually require a motivated seller (although most sellers willing to do a subject to are motivated). The problem is, the normal time someone will consider a subject to is when they can't pay their mortgage and in those cases, they are often highly leveraged. Sometimes too much to make a good margin without a short sale. But that is by no means always the case.

Rich Ramjatan · Answer

@Rico Bandz

I also wondered about this also on high equity homes . you pay the equity difference to the seller , does it even still makes sense to do a subject to if your plan is to refinance into a permanent loan down the line ?

Plan is to buy and hold as Rental

Exit would be to refinance within 24 months

Exit strategy would be to sell if all else fails .

Stephen Keighery · Answer

Yes you can subject to a high equity home but you are likely going to have pay a high cash component. This eliminated a lot of the benefits of subject to. You could potentially get owner financing instead of cash if you wanted to put less cash into the deal.

Joel Hutchinson · Answer

Yes. Of course, unless the seller is willing to consider owner financing (hold a second position note), you might need to bring cash to closing to pay for this equity.

Can you do subject to with high equity homes?

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