💡 Daily Real Estate Tip: Seller Financing & Subject To – What Are They
Hey Skool Community! Today, we’re diving into two cool real estate strategies that can help you close deals without needing a bank loan: Seller Financing and Subject To. Let’s break them down: Seller Financing: This is like cutting out the middleman (aka the bank). The seller acts as the lender, and you make monthly payments directly to them. It’s a great option if you don’t want to deal with traditional financing or if you’re buying a property with less-than-perfect credit. The best part? You can negotiate the terms directly with the seller! Example: Let’s say you’re buying a home for $200,000, but instead of going to the bank, the seller agrees to finance the deal. You and the seller agree on the interest rate, the down payment, and the repayment schedule. Easy, right? Subject To: This strategy is a bit different. When you buy a property subject to the existing financing, you’re taking over the seller’s mortgage without officially assuming it. You make the mortgage payments, but the loan stays in the seller’s name. This can be super helpful if the seller is in a bind and just wants to get out of the property, and if there’s a favorable interest rate on the existing loan. Example: You find a homeowner who’s behind on their mortgage and wants to sell. You take over the payments, and the original mortgage remains in the seller’s name, while you control the property. No need to qualify for a new loan! Why Use These Strategies? Flexibility: You can often negotiate better terms, like lower interest rates or creative payment plans. Speed: Avoid lengthy bank approvals, and close deals faster. Win-Win: The seller gets out of a tough situation, and you get a property without traditional financing. Both strategies are awesome for investors and homebuyers looking for alternatives to the usual mortgage path. Got questions? Drop them below! Let’s discuss how you can start using Seller Financing and Subject To in your next deal. #RealEstateHacks #SellerFinancing #SubjectTo #InvestingTips