"Subject To" Investing!

Okay, so what's a 'Subject To' and what makes this technique work?

Well, Subject To investing is what I like to refer to as "Getting the Deed". What this means is that you can legally purchase someone's house and leave the seller's mortgage in place.

You don't assume the mortgage, since that would require bank qualifying, closing costs, delays, or in other words, having good credit!

You and the seller sign legal agreements that give you possession of the home (you get the deed) and another agreement that states that you are responsible for making future mortgage payments...

BUT, the mortgage remains in the seller's name!

I want to expose a little-known secret so that the average person can begin to invest in real estate and develop a portfolio prior to getting into larger areas of the real estate market...

Buy Real Estate With No Credit

Discover the secrets the gurus charge thousands of $$$ for...
Learn the easiest properties to locate

Learn how to fill out all of the paperwork for a legal transaction

Learn the difference between assuming a mortgage and "Subject To" deals

Learn how to build a portfolio that will allow you to venture into other areas of real estate investing

Buy Real Estate With No Credit

In the beginning it was quite daunting. I am wealthy today, but I didn't wake up one morning with my knowledge suddenly appear in my mind. It was the most difficult part of the journey to actually discover HOW! to do this.

It took effort and sifting combined with our own adjustments and changes to do this the way it felt most comfortable to us.

Real estate with no credit checks was our holy grail. Banks are your partner in this business when they own 90% of the investment (whether you like it or not) And if some beauraucrat decides something according to their interpretation of their banking code, you must do what they say or lose that partnership and the deal you are working on.

The biggest obstacle is their insistence on reigning in your deals. They get very uncomfortable when you present a plan for doing 100 deals per month. They get very uncomfortable.

Of course, the biggest obstacle, having no experience, is that we didnt have enough seed capital to do this. Banks want large chunks of your money, just to get in With LVR's of 70-80% we needed to come up with the remaining downpayment.

It was not going to happen the way we envisaged it.

To buy property with no credit checks was a faint possibility, but I knew nothing about it 5 years ago. It was a whispy probabillity of questionable origin.The idea that anyone could suddenly start doing real estate deals without any money at all and not even a stable work history, or references or anything. Just start doing real estate deals, as many as they could find. This idea seemed utopian. Too good to be true. But of course I discovered that not all things that smell like roses are fertilized with manure. Some are actually rose, just not all. The one thing I did learn is to never lose your child like optimism. Some times santa does deliver.

I researched heavily, and found what I was looking for.

The way to buy real estate without credit checks is to dismiss the bank in the first place.

My partners and I control profits and not properties. We are in the business of creating wealth not owning real estate. So what need or business did we have approaching banks? Our profits CAME from the lending institutions, but we did not need them to create these deals.

Its time you opened your mind to wider horizons, because when you see things differently, things change.

My very best to you.

Martin Thomas is a professional investor. He invests in Real Estate, Automobiles, Sea going Vessels Businesses, and anything of value that may be converted into profits. He and his associates maintain a website http://www.opportunity-investor.com. They reveal their money making strategies and ongoing insights. This is a free content site

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Lots of folks think it can't be done.

How in the world can you buy a piece of real estate property without cash or credit? How is it possible to buy a $50,000 house or a $1 million dollar house if I don't have an abundance of cash or an excellent credit rating?

Nothing stops a would-be investor cold in his tracks like "no cash or credit." The prevailing perception is that "I can't start real estate investing" because (1) I sure don't have any money and (2) my credit is horrible!

The typical way real estate investing is accomplished is with an earnest money deposit to accompany the Purchase Contract and a down payment at closing. Many real estate investing tycoons, in wanting an offer accepted, make large earnest money deposits so the property seller will recognize the buyer as a serious investor. And because many real estate investing tycoons use real estate agents as their purchasing liaison, they provide sizable down payments out of which the sales commission will be paid.

Well, when I started my real estate investing career, I had neither cash nor credit. I had a serious business failure prior to my start in real estate investing, so I had to conjure up a way to succeed outside the traditional norm.

While I was well aware of the accepted procedures of earnest money deposits and down payments in real estate investing, I was forced by my situation to find alternatives. I did not realize at the time that commercial property is often purchased without any cash outlay at closing or even a credit check of the buyer.

So without any pocket change or a savings account, I began offering a $10 bill as my earnest money deposit! And I began offering no down payment at closing. My Purchase Contract offered simply the assumption of an existing loan! (In the 1980s when I started my real estate investing career, wrap mortgages were common, whereas today other legal instruments accomplish the same purpose.)

I don't have to tell you that real estate agents were not exactly fond of me. In fact, in my highest week of tendering offers, I submitted 235 offers on MLS houses, and got 235 rejections. I mean, the realtors and brokers were infuriated at my non-traditional offers! Most went to great pains in writing "REJECTED" across the entire length (even both sides) of the legal-size Purchase Agreement I had laboriously filled out for submission. The young man "running" my offers (and his broker) were verbally blasted out of the saddle! I got NO acceptances from my 235 offers. Yet, I still managed to buy two properties from the 100% (humiliating) rejection. Two property owners approached me later and said, "I can't accept your offer on that property I had listed with my real estate agent, but I have another house you can have on the same terms!"

That break-through began my trek into the Nothing-Down Wilderness that made me a multi-millionaire in three years. Once I realized it was persistence with a thimble-full of know-how, I forged on to discover motivated sellers who accepted my offers. I bought $1 million in properties that first year, another $1 million the second year, and $10 million by the 4th year.

It's a shame that even some real estate investing tycoons don't know how to buy with no cash and no credit. But the bottom line is that know-how still makes possible the impossible.

Buying property of any price is still achievable with no cash and no credit. It's done every day in residential and commercial property. And because it is achievable, anyone can enter the real estate investing arena, regardless of the size of his or her wallet.

Phil Speer, Ph.D., started his real estate investing career 25 years ago. Without the availability of credit and using only a $10 bill, he purchased $1 million in properties in his first year, and had accumulated $10 million in properties by his fourth year. He was featured in a Wall St.Journal editorial as most successful investor in the Nothing Down Real Estate Movement, and was honored with a Caribbean cruise as top investor of the year. In his hometown of Nashville, Tennessee, he has been a businessman and Human Resources Consultant for 30 years. He is an author, speaker and seminar director. To learn how to profit in real estate investing, even without cash or credit, read his report at at http://www.CashinHouses.com/. Subscription is free to his Fix-up Ezine. He and other contributing authors provide free articles and resources on real estate investing at his online "Academy of Advanced Real Estate Investing Techniques" - http://www.AAREIT.com/.

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