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Category: Subject To Current Grade: A- Total Views: 3176 Member Comments: 0 |
Posted on: 09/29/2008 Posted by: RyanDehler Article Points: 135 View all articles >> |
There are a variety of real estate investing strategies that can make an investor a lot of money. Most of them can be done with “no money down” techniques. One of these techniques is known as “subject-to investing.” This is a strategy I still use today for many of my investment deals. This technique is a way to purchase property with no money down by taking over the seller’s mortgage. Many times a seller will want to sell this way if they are going through a foreclosure. This is a quick and easy way to sell their house and it works for both parties involved. The seller gets to sell quickly to avoid a foreclosure and get out of the situation and the buyer (being you) gets to purchase the property with no money, no credit, and no liability. The buyer will take over the mortgage and payments for the time being and immediately put the property on the market for sale in hopes to sell the property for a profit. Many of you might be thinking it doesn’t make sense that a seller would want to do this when he or she could just sell the property by themselves and make a profit from the transaction. However, this is not true and there are several different scenarios involved that justify the homeowner selling you the property with equity. For example, in many areas of the country we are experiencing depressed real estate markets. This means it can take months to sell a house. Not to mention many of these houses need some repairs completed to make them marketable. These people cannot afford to make these repairs, or to even clean clutter and garbage out of their house. This is a prime example of why people sell their houses to you using this method. It is a fool proof way for them to get out from under their property. I made a profit of $81,000.00 on my first subject-to deal and have done several of these deals since then. My typical profit is anywhere between $5,000 and $30,000 dollars on subject-to deals. It was a coincidence that my first deal was my most profitable subject-to deal ever. You can quickly see why this career has made me financially successful and how I have gone on to inspire so many people to start a career in real estate investing allowing them to free themselves from the job they have such a hard time waking up to go to every day. Visit me and speak to me personally at Good luck and take care, Ryan Dehler


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how would i aproach to start the conversation of a subject too deal and what would i say
Subject to question: If you purchase a subject to deal to hold, the financing remains in the previous owners name. Most mortgage payments include the insurance and taxes. Since your name is not on the actual mortgage how will you know if the payment goes up due to increases in taxes or insurance? What happens if there is damage to the house and you need to make repairs. How do you go about getting paid for the claim? How do you find out about the increased mortgage payment? I would love to think you could just get the information from the previous owner but many of them move and cannot be contacted or just won't let you have access to the information you need.
Bill, I dont know if you are being completely sarcastic or if you are serious.
If you are being sarcastic I first want to say, you are an idiot. Everything I say is true and 100% accurate. How did I carry the payments? Why the hell would I carry payments, the house was already 6 months behind in payments. I took over the Defaulted mortgage, put 200.00 into the house, and listed it for sale while it was in default. I gained selling time by sending the bank a contract showing them that its best for them to hold off. If you are really are the type of person that thinks they know it all the the glass is always half empty you will certainly never succeed in ventures such as real estate investing.
You mention "due on sale". first thing I will say about that. Just about EVERY loan has a due on sale clause. Now let me ask you a question and maybe you can answer it yourself...How in the hell does a bank call a loan due that is already being called due?? Think about that, then get back to me....no wait..lets use a different scenario as well..You take a loan over, bring it current with your cash and continue to make the payments...let me ask you the same question...if you were the bank...why in the hell are you going to call a loan due that is 100% performing regaurdless of whos paying it...think about it..I currently have multiple loans out like this that the BANKs know I own it and they would NEVER in a million years call it due..
Again...if you are losing your house to foreclosure and cant afford to pay for it...You are already in foreclosure. If you deed it to me, and i dont perform, how in the ..... are you going to take it back...and not only that....why in the ...... would you want a house back you cant afford?
you are a perfect example of somebody who confuses me to the same extent as the employees that work at the DMV. where do they find these people?
hope that helps..good luck
WOW! $81,000.00 That's great! Just one little problem, after a notice of les pendis is filed or notice of foreclosure, any interest in or to the subject property transferred by the owner is not a valid transfer, unless the action is removed. If the bank wants to hold off, they can and I can see where they may want to, but they don't have to. The bank can continue with the forclosure proceeding.
By the way, I'm not the same Bill from the post above.
Good Luck with your ventures and your book! Bill