Christian OsgoodCEO, Multifamily Strategy · CEO at Multifamily Strategy

Subto is not a real estate strategy

26 Jul 2022 · 1 min

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0:51

Cody explains why "subject to" isn't a real estate strategy on its own. It's just a contract clause that lets you buy a property while the original mortgage stays in place, giving you seller-financed terms instead.

Chapters

What's up, Instagram? It's Cody here, and today I'm talking about subject to because I've got a lot of questions around if I do this strategy. And I like to put it out there that subject to is actually not a creative finance acquisition strategy. It's just a clause. You're going out buying real estate subject to an existing mortgage is a clause in a real estate contract, which I have done. I mentioned that on the channel before. Contract for deed. Subject to is simply just a clause in a contract for deed, and that is how you can actually go buy real estate almost quote-unquote seller financed when there's an existing mortgage in place. So hopefully this clarifies that, but subject to is a clause to go buy. I've used it before, and that is how you can quote-unquote seller finance the deal when there's a mortgage in place.