Homereal estate investingHow to explain Subject-to investing to a potential seller

How to explain Subject-to investing to a potential seller

"The way it is normally done in situations like this is that we just take over the existing mortgage. We become the new owner. Your existing loan remains in place. We will be responsible for the payment, any fix-up, and any other expenses in the property. This is the fastest and easiest way to get something done while giving you the most money possible. It can usually be done in a few days, you get cash up-front, we simply take over the payments, we start using our money and expertise to fix up the property. Do you have any questions?"

Seller's top 3 benefits

These are the reasons why a seller would want to go ahead with a subject-to purchase:

  1. Seller's credit will improve
  2. Seller gets resolution quickly
  3. Seller's gets a higher offer

Common objections:

Seller's objections

Your response

How do I know you'll make the payment?

This is an excellent question. Obviously, we would not want to get involved in the project if we could not make the payment. We will be putting our hard-earned money, time, and expertise into this property. We do not get involved in projects to lose money, period. We will be investing tens of thousands of dollars and a ton of time so we are fully incented to make this deal work because we do not get paid until the property sells. So as you can see, the likelihood of us missing a payment is very small.

Sell a home for a profit

Have multiple exit strategies so you always have options!

  1. Quick sale (to first time home buyers)
  2. Sell to buy-and-hold investors
  3. Lease option: Up-front option fee
  4. Buy and hold yourself with private money investors

For more information, go to Todd Morgan's program.

About this star: Todd Morgan is an expert at buying houses with the existing mortgage already in place and has done over 200 real estate deals. Todd loves piano and has done some recording. He has a wife and 5 children.

 Go to investingwiththestars.net/season3 for Free Weekly Training!  Every Thursday Night

Nancy Geils

Investing with the Stars


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