You’ve probably heard of “subject to” real estate investing. But, have you thought of reading a subject to book to help transform your REI business?
If so, you’re in the right place.
Subject to REI is a clever strategy for savvy investors who want to minimize up-front costs and avoid lengthy closing processes.
Sounds smart, right?
Well, reading a subject to book on real estate investing is like entering a new chapter in the world of REI…
With the right book and new found knowledge, you can snag a home by taking over existing financing without the hassle of a new loan.
And speaking of smart moves, I’ve rounded up the 5 best subject to books on real estate investing that every investor should have on their shelf.
Whether you’re curious about the nitty-gritty of these deals or want to dive into expert insights, these subject to book reads promise to deliver exactly what you’re looking for.
What Is Subject To REI?
Alright, before we explain how a subject to book can guide you in this REI strategy, let’s begin by diving into the world of subject to real estate investing. Or, as the cool kids call it, Sub2.
Imagine this… you’re eyeing a property, but you’re not in the mood for hefty down payments or those pesky loan approvals.
This is a situation frequently discussed in a subject to book: how to seamlessly slip into the existing mortgage of a property, bypassing the traditional loan hurdles.
It’s like inheriting the foundation of a house that’s already built, ready for you to customize and call your own in the REI realm.
Pretty neat, huh?
Key Characteristics of Subject To REI
- Existing Mortgage Takeover: You get to take over the current mortgage payments, keeping everything under the radar with the lender.
- Minimal Cash Up Front: Forget about emptying your pockets for a huge down payment — subject to deals often require little to no cash up front.
- Quick Closing: Since you’re not applying for a new loan, you can close these deals faster than you can say “real estate mogul.”
- No Credit, No Problem: With the subject to strategy, there’s no need to worry about qualifying for a new loan or having a stellar credit score — just step in and take over the payments.
Examples of Subject To Real Estate Investing
- The Fixer-Upper Opportunity: You’re eyeing a property that needs a little TLC, a scenario often explored in a subject to book. The current owner is struggling with payments, and rather than foreclose, they agree to let you take over their mortgage. You revamp the place, sell it for a profit, and everyone wins!
- Rental Income Stream: A landlord looking to exit the rental game might let you assume their mortgage. In a subject to book, you’ll learn how to take it over, keep the tenants, and enjoy a steady income stream while building equity.
- Market Downturn Strategy: During a market slump, a homeowner might be eager to bail out. By assuming their mortgage, you can secure a property below market value and hold onto it until the market recovers, selling it for a tidy profit.
Pros & Cons of Subject To REI
Ok, so you’re intrigued by the subject to strategy — who wouldn’t be?
A good subject to book can help you with this exciting REI opportunity.
But, before spending time reading a subject to book, let’s break it down and see what makes subject to real estate investing tick… and what might make you pause.
Pros
- Low Entry Barrier: You can get into the game without needing a mountain of cash for a down payment or perfect credit — just step in and take over the existing mortgage.
- Speedy Transactions: Skip the long waits for loan approvals and dive straight into ownership with faster closing times.
- Potential for Great Deals: Snag properties below market value during downturns or from motivated sellers, setting yourself up for future profits.
- Cash Flow Opportunities: Assume a mortgage and start generating income by renting out the property.
Cons
- Mortgage Remains in Seller’s Name: Since the mortgage stays in the seller’s name, any hiccup on their end — like their financial missteps — could jeopardize the loan’s status, leaving you in a bit of a pickle.
- Due-on-Sale Clause Risk: The lender might call the loan due if they find out, which means you’ll need to get a new mortgage pronto.
- Limited Control: Since you didn’t originate the loan, you control over the loan terms or renegotiations.
- Legal and Tax Complexities: These details can be tricky, so you’ll want a good REI accountant or a savvy real estate lawyer on your side.
The 5 Best Books on Subject To Real Estate Investing
Curious to dig deeper and see how subject to real estate investing can fit into your REI toolkit?
Here are 5 fantastic subject to books that will guide you through this strategy:
- “Get the Deed! Subject-To the Existing Financing” by Alicia A. Cox is your treasure map to mastering real estate without the hassles of cash, credit, or banks. This subject to book breaks down the art of using other people’s mortgages to nab subject to properties like a pro.
- “Investing in Real Estate With Lease Options and ‘Subject-To’ Deals” by Wendy Patton reveals the secrets to snagging valuable properties without breaking the bank. This subject to book is like having the keys to the kingdom without buying the castle!
- “The TurnKey Investor’s ‘Subject-To’ Mortgage Handbook” by Matthew S. Chan is your subject to book to mastering the art of buying properties by taking over existing mortgages — without the usual hoops of traditional financing.
- “How-To Sub-2: Subject-To Real Estate Investing Quick-Guide,” a subject to book by Kimberly Banks, is your compact companion to understanding ‘Sub-2’ deals with ease. This subject to book illustrates the art of acquiring properties with engaging real-life stories.
- “Creative Real Estate Investing: How to Buy Real Estate With NO Money and NO Credit” by Mark Monroe is your subject to book for the world of inventive property deals without the hefty price tag. Dive into this treasure trove of real-life success stories and practical techniques in this subject to book on REI.
Last Word — The 5 Best Books on Subject To Real Estate Investing
So, here we are at the end of our little journey through the world of subject to real estate investing.
We’ve explored what this nifty strategy is all about — snagging properties by simply taking over existing financing — and how it can save you time and cash.
We’ve weighed the pros and cons, giving you a clear picture of whether this could be the right move for your real estate investing game.
And about those subject to books… each one is a plethora of insights.
They’re not just books, they’re guides that can lead you through the twists and turns of subject to deals. Whether you’re looking to get into the nitty-gritty or just want some expert advice to bolster your investing prowess, these subject to books are worth diving into.
So grab a cup of coffee, get comfy, and let these subject to book authors walk you through the world of subject to real estate investing.
Who knows? Your next big REI win could be just a page away!
Interested in more books to further your real estate knowledge?