How to buy homes without cash or credit using the 'subject-to' real estate investing strategy
Subject-to's, or as we call them internally, "sub-to's," are a weapon, or strategy, used when you are buying a property and taking title, but not paying the underlying mortgage off.
When you buy a house subject-to, you, as the buyer, are purchasing the home from the seller, taking legal title to it, and leaving the underlying mortgage in place. You are buying the home "subject to" the underlying mortgage remaining in place. That is where the name of the strategy comes from.
In a subject-to deal, you are agreeing to 'take over' the seller's debt. When you take over someone's debt, or mortgage, you are simply agreeing to make the payments on it. Subject-to's are a great strategy because they allow you to own a property without having to be personally on the hook for the debt. The debt stays in someone else's name, meaning you have NO personal liability.
So what would make a seller want to go through with this? What do you say to a seller to convince them this is a route to go? We talk about ALL of that and MORE in this episode of the Real Estate Investor's Money Matrix Podcast.
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