This content was created by Joe Homs 949-625-4533. This content was uploaded by Joe Homs 949-625-4533. This is a YouTube video titled "Subject To Real Estate Investing | CREATIVE Financing" (published April 9, 2021) featuring Joe Homs 949-625-4533 presenting a tutorial-style talk on "subject to" real estate investing. Joe defines the subject-to transaction (buyer takes title while existing mortgage remains in the seller's name), explains two creative financing approaches (straight subject-to cash-to-loan and subject-to with a seller carryback/seller financing), provides numeric examples, reviews benefits for buyers (limited credit/funds) and sellers (no longer wanting landlord responsibilities/receiving income), and includes calls to action (subscribe, like, and watch related videos).
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Come on in. Hey, glad you made it. Today we're going to discuss a very powerful way to make money in real estate. Many people may not be aware of it, but it's called subject to, and it's coming up right now. If you're looking to create the life you've always wanted through real estate, you're in the right place. I'm Joe, and I have over 40 years of experience as a broker, investor, and mentor. This channel is for the new and experienced investors. Make sure you subscribe and never miss a new video every Tuesday and Thursday. First, let's explain what subject to is. Buying a home subject to means buying the home subject to the liens or loans that are already in place. In other words, the seller is not paying off the loans or the mortgage And the buyer is assuming that responsibility. However, this does not mean that the buyer will formally assume the loan. Instead, the loan remains in the name of the seller, and the buyer takes title to the property and continues to make those mortgage payments. The unpaid balance of the existing mortgage is calculated on the purchase price. Next, we're going to talk about 2 subject-to creative financing ideas. The first is a straight subject-to cash-to-loan. This is the simplest and most common type of subject-to. It's when the buyers pay the difference between the price and the loans on the property in cash. For example, if the purchase price is $200,000 and the loans on the property are $150,000, That means that the buyer has to pay the seller $50,000 and assume the rest of the mortgage. Keep watching because I'm going to show you why a seller would consider this option. Number 2 is a straight subject to with a seller carryback, also known as seller financing. This is commonly found in a second mortgage. Let's say in the same scenario, Purchase price is $200,000. The loan's on the property, $150,000. The buyer's putting $20,000 down, which means that the seller is going to take back additional financing of $30,000. There are several benefits to subject-to investing, not only for the seller but for the buyer as well. First, this method is great for buyers buying a property with insufficient credit Or funds. This is also a great benefit to those sellers who really don't want to be landlords anymore and want to get into a situation where they have income coming in each month and not having the responsibility of owning the property. If you guys got value out of this video, make sure you give it a thumbs up. Also, feel free to reach out to me anytime. I'm here to help. If you want to learn how to talk to motivated sellers, make sure you click on this video right here. I will show you what information you need from the seller to make sure you qualify it and know that you have a good deal at the end of the day. See you on the next one.
