Subject to

[Jose Castillo]

Can someone please explain what's a subject to and when would it be a good time to use it. Should I focus on this strategy as a new investor?

[Zane McLaughlin]

Ok I assume you are a wholesaler.

And yes, I would definitely make sure that your cash buyer either knows that the deal is a subject to, or find out if he takes these deals. If you have a good cash buyer that you can send deals to on a regular basis, the last thing you want to do is waste his/her time with looking into a deal to only find out that he couldn't have taken the deal to start with.

In any case, you should broaden your buyers list and find investors that take these deals. I absolutely love deals like these--they're my bread and butter. I'm sure that you could find other investors like me in your area that would love to have these types of deals sent to them. \

And @Jay Hinrichs, I disagree with needing a large amount of money to make these deals work. I have done 3 deals this way this year, with less than $1,000 out of pocket expenses. Having more money at your disposal for a safety net is a great thing to have, but if you can be creative, and think outside the box, you can do a lot with a little. I use these for long term cash flow-making sure to pay the mortgages, while making a little off the top in rent. These aren't only good for quick flips.