In the video below, Ron discusses a common NO MONEY DOWN real estate investing technique known as Subject To investing. Subject To transactions enable YOU, the investor, to acquire properties with virtually no money out of your pocket. The owner deeds the property to you and you both agree that you will make the payments on the mortgage. However, the seller still remains liable for the payments.
Here's a simple example - Steve purchases a home and pays for it by putting 5 percent down and getting a loan from the bank for the rest. A year later, Steve loses his job and can no longer make the payments to the bank. He can't sell it through a real estate agent because he won't have enough equity in his house to cover the agent's commission. He feels the only way out is foreclosure which will destroy his credit. You come to the rescue. You offer to buy Steve's house by making his mortgage payments. Steve deeds the house to you and you start making the payments. Steve moves out but is still responsible for the loan. You can now rent the house out, move in, or sell it. This is a common NO MONEY DOWN INVESTING technique. You can learn the entire process from start to finish right here. In the video below, Ron role-plays and teaches one of his students this exact technique. Check it out:
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