Lease options and subject Tos are great no-money-down real estate investing techniques. However, using the right strategy at the right time is essential if you want to succeed. Lease options are best when sellers are strong with lots of equity; subject to are recommended in case the seller is in a bad-debt scenario.

Lease options and subject tos are two great techniques to earn more profit in real estate sector. However, you must know the pros and cons of both the techniques in order to understand when and how to use which of the techniques. This article will help you understand the same.

Subject to is a common phrase that simply means one person is taking over the payments on property without officially taking out a mortgage or taking over the existing mortgage. But is it legal? Understanding a lender’s take on the situation can help you understand how (and why) the process works.

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.

Alright, here¡¯s the bad news. Forget about what the GURUs told you about how you don¡¯t need cash or credit to do this business. Although buying sub2 is essentially buying with owner financing, sometimes these houses will need payments brought current or minor to major repair. This takes cash. There WILL be times when you will need cash or credit or a combination of the two. Don¡¯t get me wrong, you CAN do some deals without either but if you are thinking about holding property without having at least the ability to get cash if needed, I just have one word for you¡­¡­..DON¡¯T!