Advantages For Investors Buying Properties “Subject To”

In my previous two articles in this series on what “subject to” is and what a typical “subject to” deal looks like, you learned quite a bit about the big picture of how agreeing to make payments on an existing loan when buying a house actually works.

In this article, I will share with you what I believe some of the benefits are for buying properties “subject to” the existing financing.

First, and this is a big one for investors in our current credit markets, you do not need to go out and get a new loan. There are large numbers of investors that have great credit and can afford payments on a property, but due to our current credit market are being denied new loans. It sure doesn’t help that many lenders have limited investors to having a total of 4 loans in their name before cutting them off from getting new loans. So, being able to start making payments on an existing loan make buying the properties much easier and allows you to buy more than 4 properties that many lenders limit investors to under the new lending guidelines.

Second, there are no loan fees. While there are certainly marketing costs and closing costs and costs for key Dream Team member services like your attorney, title company, accountant or CPA, et cetera, there are none of the fees associated with a new loan. There are no points, no origination fees, no doc prep fees or other costs of that nature since you are just agreeing to make payments on the existing financing on the property.

Third, as Gary Keller pointed out in the Millionaire Real Estate Investor book with the example of the investor accomplish this with a quitclaim deed, you are the owner of the property and, as such, you get the benefits of ownership. Unlike a Lease Option, which has some similarities to buying a property “subject to”, when you purchase a property “subject to” you do get the tax benefits–and responsibilities–of ownership.

Until my next post,

James

P.S. Want access to our huge library of real estate courses, systems, checklists, forms, on-going live training and consulting? Sign up for Real Estate Investor Bronze Membership today.

Related posts:

1. Buying Properties Subject To Their Existing Financing Last week, in preparation for a talk I was giving at a real estate investor...
2. Buying Houses “Subject To” Using Corporations or LLCs A less thought of but very powerful advantage to buying houses “subject to” the existing...
3. Buying Properties On A Land Contract or Contract For Deed Yesterday, I shared with you a download about buying houses Subject To as part of...
4. Subject To Real Estate Investing Last week, while preparing to speak at our real estate investor group meeting, I was...
5. “Rent To Own” As A Common Exit To Buying “Subject To” Once you buy a house “subject to” the existing financing, you’d like to be able...
6. How Does A “Subject To” Deal Work In my last article, I discussed how I was recently reviewing the Millionaire Real Estate...
7. The Advantages of Buying Subject To In this episode of The James Orr Show, you will find the following: First, James...
8. Structuring Subject To Offers For Real Estate Investors While you should check with your own legal adviser to find out the legalities and...
9. How Lease Options and “Subject To” Are Similar For real estate investors that want to find deals that do not require the go...
10. Assuming The Seller’s Loan To continue with our discussion today of Strategies For Investing In Real Estate Without You...