Buying Subject to with equity ?

[Ty Primers]

Currently looking at a deal I want to buy subject to, which has about 40k in equality. I was wondering how would you go about working out a down payment (if needed) when proposing the offer to the seller?

[Don Konipol]

@Ty Primers Your offer can consist of buying the property subject to the 1st lien mortgage, and either with the seller carrying back a 2nd position mortgage for the difference between the offering price and the down payment plus existing note balance, or a wrap around note carried by the seller with the existing mortgage as an underlying mortgage. Buying ‘subject to’ is a bit exotic these days, especially when a property does have positive equity. But 40 years ago when mortgage interest rates were 16% if available at all, we all did a ton of these.