How to Find Profitable Subject-To Wholesale Deals

TL;DR

To find and wholesale subject-to deals, focus on properties with low equity by targeting free foreclosures and owners who have had their properties for two years or less. Analyze the total loan payments against local rental rates to determine profitability, and use cold calling and SMS marketing to reach potential sellers. Highlight the financial relief these deals offer to sellers while using a simple contract to secure the arrangement.

Transcript

so in this video i'm going to show you how to find a subject to deals and actually learn how to wholesale them and turn them into five or ten thousand dollar paydays so as most wholesalers will run away from low equity deals with subject to i'm going to show you how you can cash in on those deals today let me get you started so before we get in thi... Read More

Key Insights

• 🤲 Subject-to deals involve taking over existing mortgages without getting a new loan.
• ☠️ Analyzing the total loan payment and comparing it to the rental rate determines the profitability of a subject-to deal.
• 😘 Target free foreclosures and low equity owners for potential subject-to deals.
• 🥶 Effective marketing strategies include cold calling and SMS texting.
• 🤝 Emphasize the benefits of subject-to deals and offer a solution to sellers' financial problems.
• 😒 Use a simple contract specifying the subject-to arrangement.
• ❤️‍🩹 Find buyers who are either end-user homeowners or investors looking for creative financing options.

Questions & Answers

Q: What is a subject-to deal?

A subject-to deal involves taking over the existing mortgage on a property, becoming responsible for the payments without obtaining a new loan. It is suitable for homeowners with little equity who are looking to sell their property without incurring additional costs.

Q: How do I know if a property is suitable for a subject-to deal?

You need to analyze the total loan payment (principal, interest, taxes, insurance) and compare it to the rental rate. If there is a significant positive cash flow, it's a deal worth pursuing.

Q: How can I locate subject-to deals?

Look for free foreclosures that have been bought within the last two years or identify low equity owners who have owned the property for two years or less. Websites like listrei.com or propstream can provide the necessary information to create targeted lists.

Q: How do I market to potential sellers for subject-to deals?

Two effective strategies are cold calling and using SMS texting. When contacting sellers, emphasize that you pay full price for houses and can offer a solution to their financial challenges.

Summary & Key Takeaways

• Subject-to deals involve taking over the existing mortgage on a property with little to no equity.

• To determine if a property is suitable for a subject-to deal, analyze the total loan payment (principal, interest, taxes, insurance) and compare it to the rental rate.

• Locate subject-to deals by targeting free foreclosures and low equity owners who have owned the property for two years or less.

• Market to potential sellers through cold calling and SMS texting.

• Have an open conversation with interested sellers, discussing the benefits of a subject-to deal and offering a solution to their financial problems.

• Create a contract that specifies the subject-to arrangement, and find buyers who are either end-user homeowners or investors looking for creative financing options.