Becoming an Expert in Subject-To

[Todd Sullivan]

Hello All!

I have found Subject-To investing to be particularly interesting, and with what the market likely will see from Covid-related foreclosures, I think there will be a landslide of opportunities for this investing strategy, correct?  I like the fact that this strategy saves someone from a foreclosure, while costing a good amount less to invest and time to get the deal.

I've been doing a good amount of reading on the subject, and I'm looking to really understand it fully.  I've interviewed an attorney who has experience in the process, which from what I've read is step #1.  What does the usual investment incur?  If you do cash for keys, what's a fair dollar amount?  Are there any experienced investors that have a good amount of experience in this that I might be able to ask some more detailed questions?  Any particular caveats I should know, other than if a bank calls the note due? 

Thank you all for your time!

[Don Konipol]

@Todd Sullivan

It’s as difficult to find a bargain priced deal that’s subject to possible as it is to find any bargain priced deal, maybe more so.

Most subject to deals are at market price or above. The seller can’t sell for more than the balance of the note, that’s the reason he’s taking the risk of remaining liable on the mortgage.

Some people have had success with doing subject to deals and leasing out the property by artificially increasing rental income by use of a lease purchase option, so they are able to generate a positive cash flow.