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Subject To Real Estate Investing | Seller Financing: How To Flip Houses with Subject To Investing - YouTube
Channel: MyRealEstate DOJO
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okay then what we're gonna talk about is
what is a subject to now I know all
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you guys like myself have heard on TV
late-night shows radio infomercials
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things that say how would you like to
buy a house with no money with no credit
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okay
and they want you to go to some kind of
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seminar maybe all day maybe two day bootcamp and you're wondering does that
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stuff really works now let me shoot straight with you yes you can buy houses with
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no money down yes you can buy houses
with no credit or bad credit you're 100%
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right you can do those things all right
this is America guys if you're willing
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to work hard and you're able to think
creatively then you can do anything okay
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and here's a good situation what it's
called the subject - now let me give you
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a warning though even though did you
could buy a house with no credit and no
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money holding houses holding real estate
cost a lot of money guys a lot of money
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let me just give you a couple of
examples that things could go wrong from
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besides vacancies besides paying
electricity in water okay the AC might
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break you might have a water leak
outside inside your fence might blow
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down just things of that nature so
you're gonna need some capital in
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reserves not how much capital will
depends how many property you're hurt
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holding but I would always highly
recommend to my men my mentor students
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at least at 15,000 20,000 minimum 10,000
if you have a lot of experience by now
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before you buy a whole property's
because it does cost money okay now
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let's go ahead and pull the curtains
back let's just dive in there and learn
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about what these crews were gonna charge
you thousands of dollars
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weekends and we can out while I'm gonna
teach you in a crash course and after
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you learned this you're able to go out
there and make some money for yourself
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through hole selling fine holding buying
fixing it doesn't matter subject tube is
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a great vessel to buy property with no
money you no credit even do even though
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if you have a lot of money in your bank
account or if you have zero money okay
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it's a very good way to negotiate and
structure a deal okay in residential or
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commercial it doesn't matter okay now
now what is it subject to that's a very
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good question and I'm gonna define it
right now
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so lesson up buying a house subject to
just means that the seller transfers the
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deed into your name and the underlying
loan stays in place okay let me put it
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another way you buy a house from a
seller and the loan and any liens stay
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in place so the existing financing stays
in place why you buy the property now
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simply put let me put it another way
because it's kind of hard to understand
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that because it sounds too good to be
true simply you buy a house of a seller
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it gives you the title or the ownership
of the property and you just stepped
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into the shoes and you started making
monthly payments on the property as if
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you were the old owner simple guys now
that seems hard to believe but that
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happens a lot okay I'm it's called owner
financing or creative financing and
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there's a lot of different ways to
structure a subject too but let me
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rephrase it one more time what is this
subject to is when the seller conveys or
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transfers his rights of ownership to you
and you step into the sellers shoes and
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start making their monthly payments and
the sellers loan or the existing loan or
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the underlying note all the same words
all the same meaning on
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learn the vocabulary stays in place okay
so do underlying debt or the underlying
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note or the existing financing stays in
place all right now some people ask me
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hey Mike is this legal
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so is subject to legal okay yes it is
and the simplest way for me to prove my
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case is that if you go to HUD which is a
government owned if you want to put it
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establishment that makes the rules on a
hud-1 settlement lying 203 it talks
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about there it is guys I hope you can
see it line 203 on a HUD one talks about
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existing loans
taking subject to okay so here's the HUD
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website the URL hug of I hope you guys
can see that so I'm just right off this
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so if it was illegal then it wouldn't be
on a government form like a HUD one why
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haven't you heard about it all right
Realtors not talking about it our banks
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not talking about it well you know you'd
have to be a sophisticated consumer a
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sophisticated investor and
sophistication comes with a lot of hard
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work and not being part of the pack or
not being hard to hurt okay
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and so even some in investors or even
some attorneys or real estate or some
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title companies may not fully understand
that I may not do these closings so you
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have to shop around for title companies
attorneys lawyers CPAs insurance agents
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that you understand that okay because
everybody's not top of the
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the food chain you know in any business
there's the 5% or the real go-getters
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and I like to do myself and do business
with those five percent okay so now
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coming back to a subject - what is this
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legal question for you
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