Subject To Is Not What Everyone Thinks It May Be

Subject to real estate investing is often misunderstood by those who hope to invest in the real estate arena

. This article will explain a number of things that Sub'ing (as many that are in the know call this style of investing) is not, so that you can have a clearer understanding of the precise nature of this particular investment style.

One of the things that subject 2 is not is assuming the loan of a property seller. This is due to the fact that when a buyer of a property assumes a loan they must go through a lending institution. When they go to the bank or loan servicer to assume a property loan, they must qualify to assume the loan. The name of the buyer would literally replace the name of the seller on the deed when a loan is assumed. However, when an investor who is skilled in the art of Sub'ing completes a transaction the seller's name will still be on the mortgage. In the real estate market that we are a part of right now, it is no easy task to find a loan that you can assume. It is a waste of time to try to find this type of loan because they are harder to find than a heat wave in Alaska.

Another factor that some people may be concerned about when it comes to subject to investing is the legal aspect of this type of property purchasing method. Let me put all of your fears to rest because Sub'ing is not illegal in any way, shape or form. It is easy to call something illegal when you do not fully understand it, and perhaps that is what some of those who do not completely comprehend this investing method have done. If you are ever faced with this common objection from a real estate agent, prospective seller, or other type of real estate professional, simply direct them to the portion of the settlement statement that refers to an existing loan being taken over by Sub'ing. There is no way that the words "Existing loan taken subject to" could be mentioned if they were illegal in any way at all.

Always remember to conduct all of your real estate transactions with the utmost integrity and you will be fine. This is one of the best ways to invest in real estate in spite of the current economy. In order to educate yourself on this manner of investing, please go to our great website located at http://subject2.com

by: Nick L. Johnson

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