Jun 18 • General discussion
🏠What’s a “Subject-To” Deal?
Let’s say someone owns a house, but they still owe money on it — like a loan from the bank (a mortgage).
In a subject-to deal, you buy the house without paying off that loan right away. Instead, you take over the monthly payments to the bank, but the loan stays in the original owner’s name.
🎯 Example:
Imagine this:
- Mr. Smith owns a house.
- He owes $100,000 to the bank.
- He’s behind on payments and wants to move fast.
- You say: “Hey Mr. Smith, I’ll take over your payments and take ownership of the house.”
Mr. Smith agrees, and you start paying the mortgage every month — but the bank still has his name on the loan.
🧠Why would someone do this?
Because:
- They want to avoid foreclosure (losing the house).
- They can’t sell the house fast enough the normal way.
- They want out now and don’t mind leaving the loan in place.
đź’° Why it helps investors (like you):
- You don’t need to get a loan yourself (saves time, credit, and money).
- You can get the house with little or no money down.
- You can rent it out or fix it and sell it later.
đź“Ś Key Point:
A “subject-to” deal means:
👉 You own the house
👉 You pay the mortgage
👉 But the loan is still under the old owner’s name
3
3 comments
🏠What’s a “Subject-To” Deal?
skool.com/the7figurehustle
On a mission to create 10,000 millionaires via different avenues of real estate. Teaching how to wholesale, invest, and flip real estate!
Leaderboard (30-day)
1
+6
2
+5
3
+3
4
+1
5
+1
Powered by