WEEKLY REAL ESTATE MEETING - PURCHASING SUBJECT TO

Come to this week's class to discuss the many ways to accumulate assets in real estate via subject-to purchase agreements.

A "subject-to" purchase agreement in real estate is a transaction where a buyer takes over a property's existing mortgage, allowing the seller to offload the loan while the buyer avoids traditional mortgage qualification and closing costs. The buyer becomes responsible for the mortgage payments, property taxes, and insurance, but the mortgage itself remains in the seller's name, with the seller remaining ultimately liable for the loan.

This strategy benefits real estate investors with lower upfront costs and favorable interest rates, while helping sellers avoid foreclosure or make a quick sale, though it carries risks for both parties, particularly due to the lender's potential to trigger the due-on-sale clause.