Subject to mortgage investing

[Roberta James]

Hi everyone,

I'm just getting started with little experience and minimal financial resources. How do I take my first step with subject to deals?  Also, are there any local investors in the Tampa Bay Area that can teach me about land trusts for our state through this site? I've become familiar with subject to investing but would love to learn more about these deals in my market. Also, how do I create the contracts needed for these deals? I'm very humble and just simply want to get my start this year as I am highly motivated and eager to learn. I live in the Tampa Bay Area (Pasco County, Florida). 

[Jon Holdman]

Buying subject to is not much different than any other purchase.  The existing loan is simply left in place rather than you getting a new one.  The downside is the fact you're violating the terms of that loan and that give the lender the right, but not obligation, to call the loan. If you go down this road, be prepared to pay off the old lender if they do call it.

Don't fall for the guru BS about trusts.  At best they obscure the ownership.  There is NOTHING you can do to avoid violating the due on sale clause.