Learn how to structure subject-to real estate deals over the phone and close more deals with these 3 powerful strategies.<\/span><\/p> Introduction<\/span><\/p> Real estate investing doesn\u2019t always have to involve traditional bank loans, hefty down payments, or even large amounts of cash up front. One of the most powerful strategies in creative real estate financing is the subject-to deal<\/span>. A subject-to deal allows you to take control of a property by taking over the existing mortgage\u2014without qualifying for the loan or going through a bank.<\/p> If you\u2019ve been wondering how to structure subject-to deals to close more deals, this guide is for you. I\u2019ll break down 3 proven ways<\/span> to structure these deals over the phone so you can win over every seller and grow your real estate portfolio quickly.<\/p> In a subject-to deal, you purchase a property \u201csubject to\u201d the existing mortgage. This means that instead of securing a new loan, you take over the payments of the seller\u2019s current mortgage. The mortgage stays in the seller\u2019s name, but you gain control of the property.<\/p> This method is great for:<\/p> Now, let\u2019s dive into the 3 ways you can structure subject-to deals<\/span> and win every seller!<\/p> Yes, it\u2019s possible for the seller to pay you to take over their mortgage. This happens when a seller is so motivated to offload their property that they\u2019re willing to pay for the privilege of having someone else take care of their mortgage. This could happen when the seller:<\/p> How Does It Work?<\/span> In this structure, you take over the mortgage and may even receive a monthly payment from the seller. This means the seller is paying you to relieve them of the responsibility for the property, and you benefit from taking over a house without spending your own money.<\/p> Example:<\/span> I once structured a deal where the seller paid me $500 a month to take over their mortgage. The seller was eager to get rid of the property, and I walked away with a monthly income and control of the house!<\/p> Why It Works:<\/span><\/p> This is another fantastic way to structure subject-to deals. In this scenario, you take over the mortgage, but you don\u2019t pay anything out of pocket for the property. This can happen when:<\/p> Example:<\/span> I\u2019ve acquired properties where I didn\u2019t have to pay anything upfront because the house was in good shape, and the seller was even willing to cover all the closing costs. I walked away with a property for free!<\/p> Why It Works:<\/span><\/p> While some subject-to deals require no money down, there are situations where you might need to pay for some costs out of pocket. These costs could include:<\/p> While this option does involve some upfront costs, it\u2019s still far more affordable than buying a property with traditional financing. And with a subject-to deal, you\u2019re taking over a mortgage without having to qualify for a new loan.<\/p> Example:<\/span> I once bought a property where I had to make three months of back payments to bring the mortgage current. The seller was behind, but after covering the past-due payments, I was able to take over the property and still profit from the deal.<\/p> Why It Works:<\/span><\/p> Structuring subject-to deals is a powerful way to acquire real estate without traditional bank financing. Whether you\u2019re getting the seller to pay you, taking over the property without paying out of pocket, or covering some back payments, these strategies allow you to close deals faster, minimize your own investment, and grow your portfolio.<\/p> By mastering these 3 ways to structure subject-to deals<\/span>, you\u2019ll be able to win over sellers on the phone and expand your real estate business\u2014without needing large amounts of cash or qualifying for loans.<\/p>What is a Subject-To Deal?<\/span><\/h3>
1. The Seller Pays YOU to Buy Their Property<\/span><\/h3>
2. Buy the Property with No Money Out of Pocket<\/span><\/h3>
3. Pay for Back Payments, Repairs, or Closing Costs<\/span><\/h3>
Conclusion<\/span><\/h3>