Signature Intl Premier Propert
Sally Masters, P.A. , Signature Intl Premier PropertPhone: (239) 253-1579
Email: [email protected]

"Subject-to" Real Estate

by Sally Masters, P.A. 03/08/2020

Image by Nattanan Kanchanaprat from Pixabay

If you're looking for "subject-to" real estate, you know it can be a good investment. This kind of real estate is purchased "subject-to" the existing mortgage. So the buyer owns the property, but the mortgage stays in the seller's name. Payments are made by the buyer, but it's not necessary for that buyer to obtain a loan, pay all the fees associated with that, and use their own credit to buy a house. It can be an excellent deal for an investor and for a seller who's facing foreclosure or other types of problems. Here's what you need to know about the different kinds of "subject-to"  real estate.

"Subject-To" an Existing Mortgage 

The most common type of "subject-to" real estate has that designation because it's "subject-to" the current seller's existing mortgage. If you want to buy this kind of property, you won't need to get a mortgage of your own. Instead, the seller will deed you the property and you'll continue to make their mortgage payments. This can help you get properties fast and keep you from worrying about things like whether your credit is good. Not all investors like these kinds of properties, but they can be good choices when they're handled correctly.

"Subject-To" Other Types of Liens 

Even though they aren't as common, it's also possible to buy "subject-to" properties that don't have a traditional mortgage on them. These properties might have some other reason that they aren't free and clear, such as tax or contractor liens. If payments are being made on these things and you don't want to pay them off to buy the property, you can offer to buy from the seller "subject-to" those liens. Just make sure you know what you're really committing to, all the liens on the property and how much they're for, in total.

Who Would Typically Choose the Kind of Investment?

Both single-family and multi-family properties can be purchased "subject-to" existing mortgages and other types of loans or liens. When it comes to these kinds of investments, most investors who choose them are familiar with investing already. That's because there's risk involved, and brand-new investors might not protect themselves against these risks as well as they should.

Still, investors who are careful and want to get started in the market can do well with these kinds of properties because they don't have to use a lot of their own money or qualify for mortgages. Then can simply purchase properties, and that can mean a much bigger portfolio much faster than they would have thought possible. If you're looking for a way to build a big real estate portfolio quickly, buying "subject-to" properties can be one of the ways to do that.

About the Author
Author

Sally Masters, P.A.

Trustworthy, reliable, hardworking---a committed and dedicated Realtor who has earned the respect and admiration of her peers and the many clients who have called on her to consummate an important Real Estate transaction.

For over two decades, Sally Masters has been successfully listing and selling homes throughout Naples, Marco Island, Bonita Springs, Estero, Ft. Myers and Cape Coral and surrounding areas. Today, she is recognized as one of Southwest Florida’s most outstanding marketing, negotiating and sales professionals. In 2018, this native of London, England joined the Signature International Premier Properties team, bringing her vast knowledge and insight of the residential, waterfront, golf course and estate home marketplace to one of Florida’s fastest growing Real Estate Companies.

Sally has few equals in regards to her list of industry-wide certifications and designations. They include being a Certified Luxury Home Marketing Specialist and an Institute Luxury Home Market member. Sally has earned a CIPS Designation (Certified International Property Specialist), the RSPS Certification (Resort and Second Home Property Specialist) the SRES Designation (Senior Real Estate Specialist) and the MRP Certification (Military Relocation Professional)

In addition, she has been the recipient of the prestigious Ad Miller Award, recognizing an individual who has contributed to the enhancement and preservation of private property rights. In August, 2018, Sally was featured in Forbes Magazine as a Real Estate Market leader for Southwest Florida.

Sally Masters’ network of clients stretches far and wide- both beyond the United States and throughout Canada and Europe. For years, she has successfully worked with the many international buyers and sellers who invest and call home to Naples and its surrounding environs.

Going above and beyond for her many clients and her commitment to keep her buyers and sellers well informed throughout the entire transaction process is what truly defines Sally’s highly acclaimed work ethic. She constantly receives referrals and new business from her many satisfied clients who enlisted her as their broker of choice and remain in close contact.

Sally continues to give to the community she has called home for many years. She is the active and proud founder of the www. Adopt-A-Soldier.org, a charitable organization that sends packages to our troops stationed overseas.