"Subject To" Questions

[Daniel Mieldazis]

Hey everyone,

I've been doing a lot of research and I think the first deal I'd like to get under way is a subject to deal. It seems most appropriate. It's quick and can yield either a fast money or long term wealth scenario. I also like that it takes little to no cash and we won't have to transfer the deed.

My first question would be, what do most subject to investors typically do to find a situation where an owner is looking to willingly get out of their current situation?

My second question would be about the mortgage company. One investing strategy with subject to deals that I've heard are to, upon reaching a deal with the seller, contact the mortgage company and try to work out a deal to lower the loan on the home. After lowering the amount, you can either move a tenant in to cover that loan and typically generate a bit of positive cash flow. Or, to then sell the home at market value after lowering the amount due on the home and pocketing the difference. The question would be about the closing and mortgage company. Do I need to find an investor friendly mortgage company here in Indy that deals with creative financing and deals of this nature? And if so, are there any investors that are aware of any mortgage companies of this nature. Or does anyone know somebody else that may know a little more about this? I went and talked to the mortgage guy down at the bank to see if he had any connections and the guy was useless..

If anyone has any experience with this type of acquisition feel free to leave anything you feel is important to know. What do you wish someone would have told you when you first got going?

Thanks in advance everyone. I really appreciate it.

Daniel

[Bill Gulley]

@Daniel Mieldazis

I suggest you read the forums and identify those who are giving the best advice in areas you're interested in. Blogs can be written by anyone, unless you know the blog is written by a trusted source you could get some really bad advice. Same in the forums.

Everything in your 3rd paragraph is out of the question, won't happen and sounds like you're getting pretty mixed up there guy.

Get out of the guru stuff, all of it, don't begin with anything from anyone, spend one week with a real estate text book for agents in you state. When you understand deeds, closing requirements, what title insurance is, what rights are transferred in a lease or how rights in title are conveyed, things will come together. After you learn the basics then you can listen to all these folks and listen to the sizzle of the sale, the how to techniques that some use.

Otherwise, you'll have things screwed up for years or fall into doing some flim-flam type deal.

Read the forums, then the blogs, IMO