HomeUncategorizedWHAT IS SUBJECT-TO INVESTING AND HOW DO YOU DO IT?

"Subject to the existing financing" (or
"subject-to") is what this strategy is called. When you purchase a
property, you get the deed and take over the existing liens and mortgage. You
are not personally liable for the loans so if you are unable to continue the
loan, no one can come after you for more money.

 

Subject-to
investing benefits

Here are some great reasons why subject-to investing is an ideal
way to invest:

  • You
    don't have to qualify
  • You
    don't have to sign mountains of paperwork
  • No
    personal liability
  • Fast
    way to make profit
  • Build
    unlimited wealth
  • Assets
    are "bomb proof"
  • Little
    or no money required
  • Bad
    credit or no credit
  • No
    risk


 

What's the
difference between Hard Money and Subject-to?

Hard Money

Subject-to

Potential credit check

No credit check

Likely personal guarantee

No personal guarantee

Expensive

Cheap

Takes 2-3 weeks

Takes 1-2 days

LLC Option

Land Trust or LLC Option

Pay off all liens

Pay off only liens you want to

6 month loan

Unlimited time for pay-off

 

What's the
difference between Wholesaling and Subject-to?

Wholesaling

Subject-to

Signed contract

The deed

Buyer performance risk

Less buyer performance risk

Seller performance risk

No seller performance risk

Assets exposed

Assets protected

Limited time to sell

Unlimited time to sell

Limited income potential

Massive income potential

 

What will banks do when they discover a transfer? Banks don't
enforce "Due on

Sale

"
clauses on performing loans. Banks lose money when they foreclose so they are
happy when investors keep the mortgage current. When you pay the seller, pay
the seller when the house sells.

 

3 Steps to to
$30,000 in 30-60 days

It IS possible. Here's how:

  1. Find
    motivated sellers with low loan balances.
  2. Take
    ownerships Subject-to without risk.
  3. Sell
    the property for a big profit.

 

The 4 best
sources to find motivated sellers

Motivated sellers are key for an adequate inventory. Here are 4
sources to find them:

  1. Bad
    credit files. Homeowners with credit scores of 520 or less.
  2. Recently
    turned down for credit (get these from your mortgage broker).
  3. 30/6/.90
    day mortgage late list.
  4. Bankruptcies

To find out more about SUBJECT-TO Investing, go to www.investingwiththestars.net/todd.htm

Nancy Geils

 


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