Real Estate Investing: Beware of Subject To Promises

Home
>
Real Estate
>
Real Estate Investing: Beware of Subject To Promises

Real Estate Investing: Beware of Subject To Promises

Another real estate writer's mini course, full of promises and fluff, ended with a "lesson" on why you need to buy his book so you can finance multiple properties "subject to." The reason, he said, "because banks won't let you finance more than ten mortgages."

This simply isn't true.

First, banks let you finance as many mortgages as you can pay for. Some banks limit the number of loans made to one person. Experienced real estate investors just move on to another lending institution.

I know one investor who owns more than one hundred single family homes. All have mortgages. He constantly refinances one rental for the down payment to buy the next. Besides living off the cash flow from his rentals, he also refinances a rental occasionally to take his family on a first-class vacation.

Another investor, my friend who owns the carpet company we use for our fixers, owns more than fifty rentals. None were purchased "subject to" the existing loan. Many were purchased "all cash" for quick closings, with mortgages added later.

For beginning real estate investors, looking for an owner willing to sell their property "subject to" the existing loan adds a frustrating component to the search for a profitable property. Today's savvy home sellers just won't sell to a buyer who can't cash them out.

Of course, some investors offer "subject to" and lease-option purchases. But, properties with most of the equity stripped out come with payments too high for rental income to support. These properties make better candidates for owner-occupant home buyers with poor credit who don't mind paying more for a house.

Beware of "subject to" seminars, books, and promotions. This real estate investing method worked last century.

Jeanette Fisher teaches real estate investing and credit college courses. She became a credit expert to help her real estate students buy their dream home and multiple investment properties. Jeanette is the author of "Credit Help! Get the Credit You Need to Buy Real Estate" and other books. For a free report, "Credit Tips for Mortgage Financing," visit the Real Estate Credit Help Center http://recredithelp.com

In The News:

Europe's drought 'on course to be worst for 500 years' amid fears 'situation could worsen'
Tue, 09 Aug 2022 14:41:00 +0100
The drought scorching much of the European Union is set to be the worst endured since the sixteenth century, a senior scientist at the European Commission's (EC) drought service has warned.

Why the FBI has raided Trump's estate - and what it is investigating
Tue, 09 Aug 2022 09:06:00 +0100
The raid on Donald Trump's Florida estate has stunned his supporters, enemies and observers around the world.

At least eight killed after record rainfall floods Seoul
Tue, 09 Aug 2022 14:00:00 +0100
At least eight people have died after heavy rain hit South Korea's capital - flooding homes, roads and subway stations.

Ex-international cricket umpire Rudi Koertzen dies after car crash
Tue, 09 Aug 2022 16:04:00 +0100
Tributes have been paid to former international cricket umpire Rudi Koertzen following his death at 73.

Final attempt to save beluga whale in River Seine before it starves to death
Tue, 09 Aug 2022 13:18:00 +0100
Environmentalists will try to move a dangerously thin beluga whale that strayed into the River Seine last week in a final attempt to save its life.

tikatoshop.it

Erfahrungen mit Pallhuber Wein
Agen Bola SBOBET Terpercaya

Travel in comfort and at your leisure with CT Airlink Limousine & Car Service for top quality private transportation and exceptional customer service. We operate Sedans, SUVs & Vans for CT Car Services to covering all Connecticut airports including Car Service from CT to Newark Airport , Mohegan Casino Uncasville CT, Foxwoods Casino Mashantucket CT, Manhattan Cruise Terminal NYC, Brooklyn Cruise Terminal NYC and Bayonne Cruise Terminal NJ. CT Airlink hire licensed and friendly chauffeurs who have in-depth knowledge of the Areas.