Subject To - Posted by Nick

Posted by Nick on June 17, 2002 at 12:18:03:

Mr. Finke,

Thank you for your reply. One last question. The “subject to” method seems like a great way to buy property no money down. Is this a correct assumption? And, if so, how would I go about doing it? From what I understand, the goal is to find a fully mortgaged property, take it over subject to, and flip it to someone while holding a high interest mortgage, pocketing the difference in the interest rates. Is there somewhere I can find contract documents to use for this?

Thanks again for all your help!


Subject To - Posted by Nick

Posted by Nick on June 14, 2002 at 15:38:03:

Hey Guys,

I’ve been studying your site for a couple of weeks and I’m very impressed with the amount someone can learn here! I’m in the middle of studying the Carleton Sheets course and, between his course and your site, the two buying methods that I’m confident would work in my area are the lease/option and the subject to buy. There are still points of the subject to that are fuzzy to me.

  1. What’s the motivating factor to make the seller sign over the deed?
  2. What are the advantages of “subject to” over lease/optioning?
  3. Does “subject to” buying work best with sellers who have little or no equity in their properties?

Any help would be greatly appreciated. I know people who need to get out of their houses and also people who have terrible credit but could afford a nice home.


Re: Subject To - Posted by JFinke KC

Posted by JFinke KC on June 14, 2002 at 16:35:48:


Here’s a couple quick answers to your questions:

  1. Motivating Factor: To have their loan brought current before foreclosure ruins their credit.

  2. Advantages of Subject To: With “subject to” you get ownership of the property immediately, with Lease/Option you do not. But sometimes you don’t want the responsibility that comes with ownership, depends on the situation.

  3. Which works best: Can’t say. Both can be useful tools when there is little equity. Again depends on the situation.

Hope this helps.

Good Luck,

JFinke KC