Subject to real estate investing

[Charles Mouille]

Hi I am new to real estate my question is how do you find subject to deals I have no idea where to begin. Thanks 

[Darrell Shepherd]

People that sell sub2 arent looking to sell sub2, you have to sell them on it.  You are looking for a motivated seller, most of the ones I've done have been in foreclosure, they aren't as concerned about their credit as most.  

Sub2 deals aren't that complicated, but you do need to understand what you're doing, you can do a lot of harm to the sellers doing it wrong and some states have some laws in place because people have gotten burned. There are also a lot of issues the gurus dont tell you about like insurance and dealing with banks when your POA gets stale.

Like Michael said, you need to begin with the end in mind. I used to do a lot of sub2's and sell them on L/O's. Got burned pretty bad when the market tanked. Still make sub2 offers, but mainly to keep my money costs down on rehabs.

Anyway, your marketing should be targeted to motivated sellers, preferably ones that aren't credit conscious, then just make offers.  There's some skill there, too, you dont really want to to say "I wanna buy your house subject to", nobody outside of the investing world would have any idea what you are talking about.  Its more like "OK, I can get you out of this mess, but I'm going to need to leave the loan in place to make it make sense on my end...SO, I can pay you $2000, then I'll catch up the back payments and make them monthly, this will actually improve your credit....does that sound fair?"  Plenty of ways to crack that egg, but the better you are at presenting it, the more yeses you'll get.