In this episode of the "Properties to Profits" podcast, I'm diving deep into the world of "subject to" real estate deals — a creative way to purchase properties without taking on a new loan or putting down significant cash. I'll break down how you can acquire properties by taking over the seller's existing mortgage, why this strategy can be a game-changer when the seller has a great interest rate, and how it can help you build equity and cash flow from day one.

I'll also share my personal experiences, including a recent deal where we bought a property with just $5,100 out of pocket and are set to generate monthly rental income immediately. You'll learn the risks and challenges involved, including why transparency with sellers is crucial and how to handle potential pitfalls like the lender calling the loan due. Whether you're new to real estate or looking to expand your portfolio, this episode will equip you with valuable insights into the "subject to" strategy!

Timeline Summary:

[00:00] - Introduction

[00:21] - Introduction to the episode and the "subject to" strategy.

[01:05] - What is a "subject to" deal, and how does it work in real estate?

[01:46] - Real-life example: Acquiring a $300,000 house with a $90,000 mortgage.

[02:25] - Recent "subject to" acquisition with $70,000 in equity and $400 monthly cash flow.

[03:27] - Finding and structuring "subject to" deals, including ethical considerations.

[04:44] - Key risks involved in "subject to" deals and how to mitigate them.

[05:55] - Opportunities in wholesaling "subject to" deals and a call to action for listeners.

Closing Remark:

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