The reason this strategy is a good option for both the buyer and the seller is because an investor has the resources to fix up properties and find buyers. But they can’t always get a conventional loan with a bank because of current guidelines. This means that having the loan stay in place is an essential part of the deal working for both parties.
“Subject-to” real estate contract transactions have an added benefit to the seller because they are relying on an investor to make the payments on the property instead of a typical buyer, which may give the seller a higher comfort level.
The main disadvantage to a subject-to transaction is if the investor stops making payments, the seller will get the house back by either a foreclosure or a deed-in-lieu.
Markette Properties can buy your house using this method or assist you in the transaction with another investor.