Diving into the world of subject-to properties?
It’s a bit like starting a new hobby.
At first, it might seem a tad overwhelming.
Even with all the perks these deals offer, some homeowners scratch their heads, wondering if it’s the right move for them. But hey, that’s where this article comes in!
We’re about to unpack eight rock-solid tactics to help you spot and snag these properties like a pro.
And guess what?
You’ll add some impressive notches to your real estate belt by giving these methods a whirl.
Now, if there’s a golden ticket in this subject-to property game, it’s setting your sights on motivated sellers. Think of it like fishing in a pond teeming with fish.
By casting your net in places like lead-buying, teaming up with those savvy real estate matchmakers, and mingling with the who’s who of the industry, you’re upping your odds of reeling in some pretty sweet catches.
So, as you dive deeper into this read, you’ll be gearing up with the smarts and the swagger to truly shine in the subject-to property arena.
Ready to roll?
Here are 10 pro hacks you can use to find subject-to properties and get yourself a deal.
1. Make Sure To Target the Right Type of Motivated Sellers
Stepping into the world of subject-to properties is like embarking on a treasure hunt. You need to know the right maps to follow and the experts to consult.
Think of sellers as two main types:
- Those in a financial pickle
- Those with house headaches
Now, imagine someone drowning in bills like credit card dues or medical expenses.
They’re probably dreaming of a big cash deal to pull them out of the deep end. So, they might not be too keen on subject-to deals since it doesn’t offer that instant cash relief they’re hoping for.
On the flip side, there are sellers whose houses are giving them sleepless nights. Maybe it’s the never-ending repairs, the lawn that’s always demanding attention, or those pesky mortgage payments.
For these folks, having someone swoop in and take that property burden off their shoulders? That’s like a dream come true.
So, if you’re on the hunt for subject-to properties, your best bet is to chat up those sellers with house woes.
They’re the ones more open to a subject-to deal because it’s like handing them the perfect solution on a silver platter.
2. Purchase Leads From Subject-To Marketplaces
Stepping into real estate investment can feel a bit like being the new kid on the block. You might not have all the tools in your shed to kick off your own lead generation.
But here’s a nifty shortcut: why not buy those leads straight from the pros in real estate marketing?
Have you heard of places like Motivated Leads, Real Estate Bees, or iSpeedToLead to name a few?
They are like a bustling bazaar for investors, brimming with eager sellers, and yes, that includes those sought-after subject-to leads.
Whether you’re pinching pennies or ready to splurge, they have freebie and premium options to fit your groove.
Here’s a sneak peek at what’s in store:
- Pinpointed local targeting
- Super-detailed filtering tools
- A smorgasbord of payment options
- A friendly team at your beck and call
- Handy tools to jazz up your online mojo and sharpen your skills
Tapping into a motivated seller marketplace like this is like having a trusty compass in the vast world of property investment. It’s all about getting quality leads without breaking a sweat.
3. Driving for Dollars – Hit the Road for Real Estate Gold
Ever thought of turning a leisurely drive into a treasure hunt for prime real estate?
That’s the essence of “driving for dollars.” It’s a hands-on, wallet-friendly way to scout out potential subject-to properties.
Let’s break down how to make the most of this road trip:
Pick your playground: Start with areas you’re keen on investing in. Look for spots with a good number of empty homes.
Tools like PropStream can be your trusty sidekick, helping you zero in on locales based on what you’re looking to spend.
Map out your route: Tackle one area at a time. It’s like eating an elephant – one bite (or in this case, one block) at a time.
Eyes on the prize: As you cruise, watch for signs that a property might be feeling a bit lonely:
- Overgrown lawns
- Windows that are either broken or boarded up
- Clear signs of wear and tear, like a sad-looking roof or peeling paint
- Papers or notices stuck to the front door
- Cars that have seen better days parked out front
- A noticeable absence of personal touches
- Peeks inside showing barren rooms
Jot down the deets: Apps tailored for this, like DealMachine, can be your digital notebook, helping you store property info and reach out to homeowners.
Or, if you’re old school, voice memo apps can be a handy way to note down addresses and observations without missing a beat.
Reach out and touch base: Once you’ve got your list, it’s time to play detective. Find those property owners and make your pitch.
With these steps in your back pocket, you’re all set to turn every drive into a potential goldmine.
4. Unlocking Deals: The Power of County Records
Roaming neighborhoods in search of subject-to properties can feel like a marathon.
But guess what?
County records might be your shortcut.
You’re on the trail of some sweet deals by digging into signs of potential distress like foreclosures, tax liens, other types of liens (think mechanics liens), code hiccups, and eviction notices.
How you get your hands on these records can be a bit of a toss-up.
Some counties have embraced the digital age, putting everything online.
Others?
They might send you on a little field trip to the courthouse.
A quick chat with your local probate office can give you the lowdown on the best way to access this goldmine.
And if you’re looking to save some shoe leather and time, platforms like PropStream are like your personal real estate butler.
They gather all these potential red flags in one place, letting you sift through based on what catches your eye, be it a foreclosure or a lien.
Just a heads up: sometimes county records might have old contact info.
If that’s the case, there are nifty tools designed for real estate investors that can help you play detective and get the latest details.
While online platforms are super convenient, they might not have every record under the sun.
But the ones they do have? They’re just a click away.
And sure, records that require a courthouse visit might have fewer folks vying for them.
But if you’re up for a bit of legwork, the rewards could be well worth the effort.
5. Tapping into Expired MLS Listings
Picture this: Homes listed on the MLS that, for one reason or another, didn’t get snapped up and now their listings have gone stale.
Maybe the seller had stars in their eyes thinking their home was worth a fortune.
Or perhaps they genuinely needed a certain price to make the move.
For savvy buyers like you, these expired MLS listings are like hidden gems, especially if you’re eyeing a property for steady cash flow.
Here’s a fun fact: if the current loan on a property has a super low interest rate compared to what’s out there now, buying that property subject to its existing loan might be a win, even if you stretch your budget a tad.
So, how do you hunt down these listings?
- Keep a close watch on Zillow. Look for homes hanging around for about six months, which is usually how long listing agreements last. When you spot an expired one, it’s time to chat with the owner about possibly making a deal.
- Dive into PropStream and use their “Failed” MLS status filter. It’ll help you rustle up a list of listings that have gone cold during a set period. Once you’ve got your list, it’s showtime! Reach out to those owners with your best pitch.
By keeping your ear to the ground for expired MLS listings and having some smooth talk up your sleeve, you’re setting yourself up for some pretty sweet investment finds.
6. Navigating FSBO Listings
A group of homeowners decide to go solo, listing their homes without the middleman.
These are the FSBOs, or “For Sale By Owner” listings.
Some folks take this path to dodge agent fees, while others feel they’ve got the chops to manage the sale themselves.
If you’re on the hunt for subject-to properties, diving into FSBO ads might feel like searching for a needle in a haystack.
Many of these sellers are looking to pocket every penny and might lean towards conventional offers. But with a sprinkle of strategy and a dash of finesse, you can navigate this:
- Spotting the Right FSBOs: Keep an eye out for listings that show signs of wear or have been up for a while. These sellers might be more open to a subject-to offer, saving you both time and potential headaches. But a word to the wise: those picture-perfect homes in top-notch areas? They’ll probably get snapped up fast, making a subject-to negotiation a bit trickier.
- Mastering the Art of Conversation: When you ring up an FSBO seller, think of it as making a new friend. Build a connection, get to know their story, and ask questions that open up the conversation. If you jump into the subject-to pitch too soon, you might hit a wall. Instead, feel out if this approach really fits their needs.
By sharpening these tactics and zeroing in on the right FSBO listings, you’re setting yourself up for a smoother ride in the world of subject-to deals.
7. Teaming Up with Real Estate Wholesalers
Picture real estate wholesalers as treasure hunters. They’re always on the prowl for properties in distress, hoping to snag them at a hefty discount.
But here’s the thing: not every seller is looking for an all-cash, discounted offer. Some sellers are in a tight spot, owing nearly as much as their property’s worth.
For wholesalers, this can be a tough nut to crack.
But what if you could swoop in and offer a solution?
Think about joining forces with local real estate wholesalers.
Offer them a little thank-you fee for every lead they toss your way that turns into a subject-to deal. It’s a win-win: you breathe life into leads that seemed like dead ends, and they get a little something for their troubles.
Wondering where to find these wholesalers? Here are some pointers:
- Dive into local real estate investing Facebook groups. Wholesalers love to showcase their finds there.
- A quick Google search with phrases like “sell my house in [your city]” or “we buy houses in [your city]” can be revealing. Many of those top results? They’re in the business of deal assigning.
- Remember those real estate investor mailers you get? Most of them are from wholesalers. Why not give them a call?
- Chat with house flippers or landlords you might know. If they’re buying a lot, chances are they’ve got a wholesaler or two in their contacts.
- And those “We Buy Houses” signs you see around town? Yep, wholesalers are usually behind those.
So, ready to make some wholesaler connections and uncover those hidden property gems?
8. Building Your Own Niche Real Estate Website
Stepping into the real estate scene with your own website can be a game-changer, especially when hunting for subject-to properties.
You’ve probably seen investor sites flashing phrases like “we buy houses” or “need to sell my house quickly.”
While these are catchy, climbing the search ranks with such broad terms is like trying to be heard in a packed stadium.
Why not take a different route? Zone in on niche keywords that speak directly to the heart of subject-to properties.
Think along the lines of “sell my home with little equity” or “facing home foreclosure.”
Sure, these might not be the most searched phrases, but they’re also less crowded, giving you a clearer shot at the top.
Kick things off with a homepage that wears these targeted keywords proudly: “sell my home,” “limited equity,” “facing foreclosure.”
And don’t stop there.
Craft blog posts that dive deep into these topics, offering insights and solutions.
Now, you’ll want to gather backlinks to give your website that extra oomph in search rankings. That’s the digital equivalent of getting a thumbs-up from other sites.
While we won’t dive deep into the world of link-building here, a sea of online resources is ready to guide you. Y
ou should check out the team at Carrot, which builds websites to attract, convert, and close more deals.
Setting up a website tailored for subject-to leads might feel like a mountain climb at first. But imagine the thrill when you start drawing in eager sellers without lifting a finger.
The trick?
Pinpoint those niche keywords, dish out valuable content, and gather those golden backlinks.
With these in your toolkit, you’re all set to make a splash in the digital realm and connect with potential sellers.
9. Mingling with Property Managers
Ever thought about rubbing elbows with property management companies?
They’re like the backstage crew of the rental world, handling the nitty-gritty for landlords.
Now, while a good chunk of their clientele are seasoned landlords who wouldn’t dream of selling, there’s another group in the mix.
Picture the accidental landlords, folks who’ve found themselves renting out their homes to keep up with mortgage payments. They might secretly wish to sell but aren’t clued in on the alternatives.
This is where you come in.
You’re planting a seed by keeping the lines of communication open with property managers and sharing how you can offer a lifeline to such landlords.
Next time they bump into a landlord mulling over selling, guess who they’ll think of?
Yep, that’s right – you.
So, why not start building those bridges?
10. Building Bridges with Real Estate Agents
Ever thought about teaming up with local real estate agents?
They’re often the go-to folks for homeowners itching to sell.
While the lion’s share of property deals dance through the Multiple Listing Service (MLS), a slice of sellers find themselves in a bind.
Maybe they’re short on equity or can’t swing the costs of an agent to help offload their home.
If you’ve got a solid rapport with agents around town, guess who they might think of in these tight spots? Bingo, that’s you.
Imagine a homeowner who’s in a rush to sell but is stuck because of low equity.
A subject-to deal could be their golden ticket out.
So, when you’re chatting with agents, let them in on a little secret: if they point such sellers your way and it leads to a deal, there’s a thank-you fee in it for them.
Think of it as a small token of appreciation, a way to sweeten the pot, and in return, you might land a prime subject-to property.
Are You Ready To Put In The Effort?
Imagine having a treasure trove of properties that give you a steady cash flow, and you didn’t have to empty your pockets to get them.
That’s the magic of investing in subject-to properties. But, like any treasure hunt, it takes a bit of grit and determination to find these gems.
Most property listings won’t wave a flag saying, “Hey, take over this mortgage!”
Yet, for many sellers, it’s the perfect escape hatch. They might not even know this door exists.
That’s where you come in, playing the role of both detective and educator, spotting those who could use this lifeline and then showing them the ropes.
Want to ace the subject-to game? Here are some pointers:
- Chat it up: Dive into conversations with just about anyone and sprinkle in your interest in subject-to deals. You never know where your next lead might come from.
- Hit the books (or screens): Dive deep into the world of subject-to investing. Courses like Pace Morby’s SubTo or a good old-fashioned reading binge can be your best friends. The more you know, the sharper your eye becomes in spotting these deals.
- Stay the course: Keep your eyes peeled and don’t hesitate to chat with sellers about the wonders of a subject-to deal. Sure, not every chat will end with a handshake, but remember, every “no” gets you closer to a “yes.”
So, are you ready to roll up your sleeves and unearth some subject-to treasures? The journey might be challenging, but the rewards are worth it!
Frequently Asked Questions
Hopefully, we answered all your questions about how to find subject-to properties. However, a lot of people have the below follow-up questions that we answered for you as well.
How do you buy a property with the existing mortgage intact?
To purchase a home while keeping its current mortgage in place, first, you’ll want to spot a property that’s ripe for a subject-to deal.
Once you’ve got your eyes on a potential property, have a heart-to-heart with the seller. The goal is to understand where you’ll step in and handle the mortgage payments.
With a mutual agreement in place, it’s time to whip up a purchase agreement that clearly lays out all the details of the subject-to arrangement.
But before you jump in with both feet, do your homework.
It’s essential to thoroughly check out the property and ensure all necessary inspections are done. Once everything checks out, seal the deal, and you’re all set to take on those mortgage payments.
How can you find subject-to properties in the market?
Begin by building connections with real estate professionals and investors. These industry insiders often have valuable insights or can steer you towards promising leads.
While you’re at it, make sure to scour online real estate listing platforms; they’re a treasure trove of potential opportunities.
Consider attending local real estate events and auctions for a more hands-on approach. These gatherings can be hotspots for deals and networking.
Additionally, touching base with real estate lawyers and title companies can be a game-changer, as they’re frequently in the loop about properties ripe for a subject-to deal.
And remember, there’s power in putting the word out. By openly advertising your interest in subject-to properties, you might attract sellers right to your doorstep.
What legal measures should be taken when purchasing a subject to property?
When diving into purchasing a subject-to property, it’s essential to tread carefully on the legal front.
Start by seeking the expertise of a real estate attorney. Their guidance can be invaluable in navigating the complexities of such transactions.
As you progress, make sure every agreement, no matter how minor, is documented in writing. This not only provides clarity but also safeguards your interests.
Before sealing the deal, take a moment to verify the property’s title and conduct a thorough title search. This step ensures you’re not walking into unforeseen complications.
Securing title insurance is also wise, offering an added layer of protection. And last but not least, always stay in the clear by adhering to local and state disclosure laws.
Taking these steps ensures your subject-to property journey is both smooth and legally sound.
What should you consider when evaluating a subject to property?
When evaluating a property, several key factors come into play.
First and foremost, consider the property’s location and the overall vibe of the neighborhood. Is it a place where people want to live?
Next, take a look at recent sales of similar properties in the vicinity.
This gives you a sense of the market and what buyers are willing to pay. Delve into the nitty-gritty of the property’s financials next, understanding the remaining mortgage balance and the specifics of the loan terms.
But don’t stop there.
Physically inspect the property to gauge its condition and identify any repairs that might be needed. Lastly, think long-term. Assess the property’s potential to grow in value over time.
Considering all these aspects gives you a comprehensive view of the property and its investment potential.
What are the steps to ensure a smooth subject to transaction?
Navigating a subject-to transaction smoothly requires a blend of open dialogue and meticulous attention to detail.
Begin by fostering open communication with the seller, ensuring both parties are on the same page and any concerns are promptly addressed.
As you proceed, it’s vital to be thorough in your inspections and due diligence, ensuring no stone is left unturned.
If you’re not buying outright, you’ll need to line up your financing, ensuring it’s ready to go when needed.
Enlisting the expertise of a real estate attorney and a title company can be invaluable, helping you sidestep potential legal pitfalls.
And throughout the process, maintain a meticulous record of all paperwork and payments. This keeps the transaction transparent and ensures you have a clear trail to refer back to if needed.
Where can you learn more about subject to property investing?
There are numerous avenues to expand your knowledge.
Books penned by real estate gurus can offer insights and strategies, while online forums and websites dedicated to real estate investing often have sections specifically about subject-to deals.
Real estate seminars and workshops can be a goldmine of information, allowing you to learn from seasoned professionals.
Additionally, consider joining local real estate investor groups or associations to network with like-minded individuals and share experiences.
And don’t forget about online courses; many experts offer comprehensive training on this topic. With a mix of reading, networking, and hands-on learning, you’ll be well on your way to mastering subject-to property investing.
