Newbie Needing Sub2 Explanation

[AUinvestor]

Hi Fellow Investors,

I'm a newbie who has a general knowledge of wholesaling, but I have no idea what buying properties subject-to means. Would someone please explain it to me the best they can?

Thanks!

[$Cash$]

AUinvestor,

Try this article...

http://www.reiclub.com/articles/sub2-beginner-investing

John $Cash$ Locke

[Hughes Investments]

Subject to means getting the deed to a piece of property "subject-to" the current owner's existing financing.  Typically, you give the owner some "moving money" for the the equity the owner has established, you put the deed into a trust you control, and the trust starts making the same payments the previous owner was making. 

[AUinvestor]

Very interesting!

Thanks so much for the reply's. I feel there is so much to learn with RE investing, but the possibilities are endless.

[Real Estate Seller]

Remember on sub2 you need to disclosed to the seller that the lender can call the note due if the seller deed the property to you without the banks approval.

[javipa]

Remember on sub2 you need to disclosed to the seller that the lender can call the note due if the seller deed the property to you without the banks approval.

Why?

[John LV]

I’m thinking that Real Estate Seller might have that one backwards…

The Seller needs to disclose to me the investor that the lender can call the note due if the seller deeds the property. After all it is the seller’s contract with the seller’s lender, and it was the seller that made this agreement with the lender not me, therefore his disclosure.

[javipa]

I’m thinking that Real Estate Seller might have that one backwards…

The Seller needs to disclose to me the investor that the lender can call the note due if the seller deeds the property. After all it is the seller’s contract with the seller’s lender, and it was the seller that made this agreement with the lender not me, therefore his disclosure.

I love that...!

It would be so hilarious (to me) to have a seller sign a document "warning me" that the bank could call his loan due. 

Hey, are you the John LV from Cash's world...?

[John LV]

The same.