Is Subject To A Good Idea For Newbies

[Ryshawn Cousar]

Hey how are you doing BP? I hope all is going well. I have a quick question.

How would I go about doing "subject to" on a property that owes 150k and pays 1108 a month for their mortgage. The property is worth 270k + and 3 bathrooms are in the process of being remodeled(the owner may only finish one).

[Account Closed]

Originally posted by @Ryshawn Cousar:

Hey how are you doing BP? I hope all is going well. I have a quick question.

How would I go about doing "subject to" on a property that owes 150k and pays 1108 a month for their mortgage. The property is worth 270k + and 3 bathrooms are in the process of being remodeled(the owner may only finish one).

Subject To is a more sophisticated transaction and needs special paperwork and planning to keep you out of trouble. The initial paperwork isn't all that complicated but knowing and explaining the process to a seller requires an understanding of title, law, loans, Due of Sale, credit, reserves, etc and the implications of each. 

All that I do are Subject To, Wraps and Lease Options, so I certainly endorse them. But it isn't something you can simply walk into and have any level of confidence that you've done it correctly. I would find a mentor (I am not a mentor, I only Joint Venture on Subject Tos but I don't think you need that here) or someone locally who does Subject To transactions who can walk you through step by step. Once you've done the first one or two, they become much easier.