What Makes a SUBJECT-TO Real Estate Deal FLEXIBLE for Investors?

2 years ago
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Subject to the Existing Note of the Existing Mortgage or Sub-To as most people call it in the real estate investing space is another great creative way to get some skin in the game without signing personally on any loans for any properties. It’s a strategy that helps investors control more real estate in a flexible way and it’s something anyone can do!

Watch this video to learn more about Sub-To deals, why they work, and how you as an investor can benefit from them!

Key Talking Points of the Episode

[00:00] Introduction
[00:15] What does it mean to buy a Sub-To deal?
[02:20] Why would sellers agree to a Sub-To agreement?
[03:15] Where are Sub-To sellers coming from today?

Quotables

“Mary owes $250K and coming out of COVID and is stressed out, and needs someone to cover that ASAP. We’ll buy that home from Mary and when you go to the closing table, if you’ve ever bought a home you’re used to seeing new money come to the table by way of a loan and that’s listed on the settlement statement. Instead, it says subject to existing loan and present balances listed, you are buying that property and that loan is staying in the seller’s name - it will stay in the seller’s name until such time you cash it out.”

“I can tell you that pre and during the 08 crash, I sleep a heck of a lot better mentally, physically, health-wise, knowing that out of the $85-90 million real estate we control, we are not on one single loan.”

“We talked about owner financing earlier, that’s people that are not in any way stressed out. The opposite end of the spectrum completely, are the people that need financial relief or something caused to trigger some urgency like a divorce, death, or post-COVID.”

“It’s usually people that are stressed out and need quick relief.”

“Quite frankly, I just know that I’m getting more Subject-To sellers, cash sellers - I’m just getting more all sellers and what’s so interesting about it in this market is all of these sellers are coming from our marketing of off-market houses.”

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Jay Conner is a proven real estate investment leader. Without using his own money or credit, Jay maximizes creative methods to buy and sell properties with profits averaging $64,000 per deal.

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