Subject-To Deals Using Private Money

[Tim Mangold]

Hi Everyone,

I'm reaching out to the Bigger Pockets crowd because I would like to do some subject-to deals using private investors, however, I'm not sure how I would structure the deal. I've been working leads for lease-options and subject-to's and I've noticed a lot of them are lost because the sellers want some money up front. Normally we pursue motivated sellers and do a zero down, however, in hopes of increasing my volume, I wanted to be able to move on the deals where the sellers are willing to work on terms but also want some money upfront. There's enough money on the back end to be able to pay a good ROI and I know some investors who would be willing to invest. The issue I'm having is that I'm unsure how to structure it so their principal would be secured against the property. Have any of you ever heard of someone doing this and do you have any insight as to how the deal would be set up?

Let me know if you need any clarification or have questions for me.

Thanks!

Tim