Subject to vs. Traditional Mortgage

[Gabriel Peterson]

I have been looking into investing in properties for sometime now and have the cash reserves to make a down payment on an investment property. My original plan was to mortgage the property the traditional way. I am however eager to grow my investment portfolio faster than the saving and mortgaging route may provide. I feel subject to practices may help me grow my portfolio at lot faster, but before I decide to take the subject to route I have a few questions of which I have listed below. Any input would be extremely appreciated. Thanks and have great day.

1. How do I build equity with subject to to contracts? 

2. Is it okay to have an appraisal and inspection done on the house before signing the contract?

3. What are the average legal fees for a lawyer to draw up the contract and keep as legal counsel?

4. Any recommendations for marketing ie. online voice mails, mailers, lead lists, etc. 

I have done a fair amount of research on this subject and have okay answers to some of these questions, but I would like to gain as much knowledge as possible before making my decision for purchasing investments traditionally or subject to. Thanks

[Brian Gibbons]

Thank you @Gary Parker 

Sub2 you have to make the payments even if your tenant does not pay.

You build equity by paying down principal so the older the mortgage the better.  

If you are buying the property I would get an appraisal and a rental appraisal from a property manager.

Look at buying on land contract also in OH.  

Lawyers vary.

Also look at lease option assignments in OH.

Sub2, LOAs and wraps are all good strategies to buy.