What is a Subject-To Deal?
A "subject-to" deal is when you purchase a property subject to the existing mortgage. The seller transfers the deed to you, but the mortgage stays in their name. You take over the monthly payments and gain control of the property.
Why Sellers Agree to This
Motivated sellers often agree because they need relief from mortgage payments. Common situations include job loss, divorce, relocation, or inherited properties. By offering to take over their payments, you solve their problem while acquiring a valuable asset.
Benefits of Subject-To Investing
- Little to no money down — you're taking over existing financing
- No need to qualify for a new mortgage
- Often better interest rates than current market rates
- Immediate equity if the property is worth more than owed
Subject-to deals are one of the most powerful creative finance strategies available. Combined with tax deed investing, they give you a complete toolkit for building wealth through real estate.
Jason Porter
Jason has been investing in real estate since 1990. Father of four and grandfather to eight, Jason focuses on Tax Deeds, Tax Liens, and Creative Financing to build wealth and help families in underserved communities. Author of the Amazon Best Seller Real Good Deeds.