Subject-to financing means acquiring a property while leaving the seller's existing mortgage in place: the deed transfers to the buyer, but the original loan stays in the seller's name, and the buyer takes over making the payments.
Log in to followBeginner framing because I got this one wrong in my head for weeks before I understood it. I kept treating sub-to as a way to buy cheap. It's a way to buy a payment. The house I c…
Got a deal sheet from a wholesaler that says "sub2, assumable, 3.25%" on it. When I asked whether the loan was actually assumable he said sub2 and assumable are the same thing, yo…
Took over a 1958 ranch at $214k balance, 3.5%, 24 years left, PITI $1,498. Seller wanted $8k and out. House was rough, not unlivable. My plan was standard for me: put $45k in, ren…
This split my last two conversations and I still don't know where I land, so I'll put both cases down as fairly as I can. The setup for anyone new. Subject-to means the deed comes…
Small town, population under 4,000, about 40 minutes from anything. 3/2 on 5.1 acres, well and septic, built 1996. Seller inherited a job transfer she can't refuse and is two paym…
A wholesaler in my area is marketing houses where you take the deed and just keep paying the seller's existing mortgage. To me that sounds like using someone else's loan without a…
Trying to work out the operations side of these before my team touches one. The way it's been described to me, we'd get the seller's online login and just make the payment from ou…
Short version for anyone about to do their first one. Sub-to means the loan stays in the seller's name and I take over the payments. On my first one I set it up the lazy way: I se…
This has been theory for me for months and now an actual one has shown up, which is not the order I wanted things to happen in. The seller is a coworker's brother-in-law. Divorce,…
Working a house where the numbers are: $412k balance at 3.125%, PITI $2,190, market rent $2,450, seller wants $45k for her equity and would carry $30k of it, value around $520k. E…
Deal in front of me is a VA loan, 312k balance, 2.75%, seller is active duty and moving. He's happy with subject-to in principle, small equity check, I take over payments. Then he…
I hold land and I am slow about everything, so selling a house eleven weeks after buying it is out of character. The arithmetic was better than holding. Acquisition. 1,340 square…
Half the low-rate loans coming across my desk from the wholesalers I talk to are government backed, and I've watched my team split hard on whether those are workable. The argument…
Three years in on a sub-to and it's worked, so here's what it actually took rather than the version where you inherit a rate and go to sleep. Acquisition: 1990s four bed in an inn…
Here's the deal I'm looking at. Loan is 2.9%, balance 227k, PITI is 1,412 with 310 of that going to escrow. Rent comps are 1,725 to 1,775. The problem is what happens to that 310.…
Deal in front of me: 1970s farmhouse on 11.4 acres at the edge of a growth path, seller relocating, existing loan 211,600 at 3.75% with 26 years left, PITI 1,430 (P&I 1,038, taxes…
Duplex under contract subject-to, seller's loan balance around $211k at 3.75%, and her hazard premium is paid out of her escrow. My insurance agent says he can't just add me to he…
I've been reading titling patterns on sub-to acquisitions and I don't think the room agrees on this at all. The land trust argument: the deed transfers to a trust, the seller is o…
Structure I'm being pitched. Operator wants 60k from me to cover a seller's equity on a house with a 198k first at 3.4%. I'd take a second deed of trust recorded against the prope…
Payment went from $1,412 to $1,741 in month ten and nothing about the loan changed. I was keeping the file on a sub-to for an investor I do coordination work for, so this one is o…