What is a Subject-To Offer?

A subject-to offer is a real estate investment strategy where you purchase a property "subject to" an existing mortgage. Instead of taking ownership of the property outright, you assume the seller's mortgage payments.

How Does It Work?

  • Identify a Property: We find a property with a motivated seller with a need to sell.

  • Make a Subject-To Offer: We present an offer to the seller, stating that we'll assume their existing mortgage.

  • Close the Deal: Once the seller agrees, the property is transferred into our name, and we begin making the mortgage payments.

Why Choose a Subject-To Offer?

  • No Down Payment: You don't need a large down payment to acquire the property.

  • Potential Profit: As property values increase, you can refinance, sell the property, or continue to hold it as a rental property.

  • Building Equity: By making mortgage payments, you'll build equity in the property.

Important Considerations:

  • Seller Approval: The seller must agree to the subject-to terms.

  • Mortgage Terms: Understand the terms of the existing mortgage, including the interest rate, monthly payment, and any prepayment penalties.

  • Legal Implications: Consult with a real estate attorney to ensure you comply with all legal requirements.

Want to Learn More?

If you're interested in learning more about subject-to offers or exploring other real estate investment strategies, contact us today.