1. Subject To The Absolute Best Way To Purchase Real Estate
Investments
Aren't you always curious about what these late night real estate gurus
are talking about when they mention "Zero Down" investments properties?
Haven't you wondered about how the heck you can buy investments
with no credit? If so, read on.
We're going to dive into a topic that's very dear to my
heart, the art of taking over payments. It's the absolute best way
to purchase homes, and it's what has allowed me to amass a very
large number of properties.
The official name for this method of acquiring homes is called
"subject-to". That's because you buy the property subject to the
existing financing the seller already qualified for. Many
investors struggle trying to get sellers to go along with this.
But once you get the first one under your belt, your comfort level
increases dramatically, and the next ones come with ease. When you
buy a home like this, you are responsible for the payments on the
loan. The seller will deed the property over to you, so you'll officially
own the home,but the mortgage will stay in the seller's name.
It's important that you explain to the seller that the loan will
remain intact until you find a buyer. You should NEVER give a time
limit on how long the loan will stay with the seller. For example,
some investors who are so hungry to find a deal will tell the
seller that he promises to find a buyer to pay off the loan within
a few years. This is a very bad strategy because you really can't
predict what the selling climate will be down the line. If you
don't get the home sold, you'll now have a seller who's ticked off
at you because you couldn't live up to your word.
You'll want to make sure you use the correct paperwork to transfer
the title from the seller to you. When you do business with
Amazing Atlanta Investments, we provide this to you FREE of
charge. Not having the correct documents can land you in big trouble
down the line.
A couple of things I want to mention now. If you say you are going
to make the payments, then you must do exactly what you say you'll
do. The sellers are entrusting their credit to us. To ruin their
credit intentionally or unintentionally would be down right
unethical. Although it rarely happens, you should explain to

2. sellers that there is a chance the lenders may call the balance on
the loan due if they see the property has switched hands. This is
because of a "due on sale" clause that lenders have in their
agreement with the seller. The experience I've had is that lenders
really don't care where the payments are coming from as long as
they're collecting their interest every month. Also, because of
the high number of foreclosures, lenders are doing as much as they
can to keep as many performing notes as possible in their
portfolios. Nonetheless, the sellers should still be aware the possibility
exists for the loan to be called.
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