I am beyond excited to bring you my guest today who is going to talk to us about investing with “Subject To” deals. Jonathan has over 30 years of real estate experience and runs his own Facebook group with over 11,000 members, where he brings incredible value to the market.
Subject To is something that I personally have had issues with, specifically with people abusing the deal structure. Subject To needs to be done more conservatively and the deal HAS to be able to pay for itself. Murphy’s Law can strike at any time, so there’s no reason to invite him to the party. You need to make sure that you are taking care of YOUR seller when Murphy does decide to come call.
The one key reason for a seller to allow an investor to take over their payments on a mortgage: because it solves THEIR problem. Usually, the problem is more than just money, such as death, divorce, or some other life issue. Working with Subject To sellers is an honor, both because of the opportunity to make money and the bonus of avoiding the high interest rates of the banks.