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In real estate investing, creative financing methods can provide substantial benefits for both buyers and sellers. One such method is known as "Subject To" (often abbreviated as "Sub To"), which allows buyers to acquire properties with little to no money down. This strategy can be particularly advantageous for investors looking to expand their portfolios without significant capital outlay. In this article, we'll delve into what "Subject To" transactions entail, the benefits and risks involved, and why you should consider learning more about this method by attending the upcoming "How to Buy Houses Subject To With Little to No Money" workshop.
What is a "Subject To" Transaction?
A "Subject To" transaction occurs when a buyer takes over the seller's existing mortgage while the loan remains in the seller's name. Essentially, the buyer purchases the property "Subject To" the existing financing. The buyer makes the mortgage payments on behalf of the seller, but the original loan stays intact without being formally assumed by the buyer. This arrangement can be particularly appealing in various market conditions, especially when traditional financing options are limited or when interest rates are rising.
How Does a "Subject To" Transaction Work?
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Agreement and Purchase: The buyer and seller agree on the terms of the sale, including the purchase price and the method of financing. In a "Subject To" deal, the buyer agrees to take over the mo ... Read More…