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Subject-To Investing 101: The Basics Of Subject-To

I’m going to give you a thorough and complete course on Subject-To investing. Why? Subject-To is more relevant today than ever for two reasons: (1) Foreclosures are at an all-time high and (2) Subject-To is uniquely suited doing pre-foreclosure deals.

I’ll give you everything you need: The basics, the paperwork/contracts, the advanced stuff, and how to avoid serious errors. And it’s all free. (Note: If you want the paperwork & contracts, you must be on the FreeRealEstateTraining.com mailing list - also free - and you can do that right now using the subscription box in the upper right part of this page.)

So, let’s get started. Here’s a video giving you the basics. I proudly present “Subject-To 101″:

I hope you enjoyed this basic introduction. In a few days, I’ll post another video explaining exactly how to get property under contract for Subject-To purchase. I’ll also give you a free copy of the infamous “Monster” Purchase & Sale Agreement downloaded by thousands of investors all over America.

If you have questions or comments about the basics of Subject-To investing, or if there’s a particular Subject-To-related topic you’d like for me to cover, please use the comments area here:

Share and Enjoy:

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This entry was posted on Saturday, May 24th, 2008 at 7:20 pm and is filed under Creative Real Estate, Real Estate Investing, Subject-To Investing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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25 Responses to “Subject-To Investing 101: The Basics Of Subject-To”

Lyn Weight on May 28th, 2008 at 2:31 pm

Hi Bryan -
Just watched your Subject To 101 video. EXCELLENT! Thanks very much! Anxious to view the remaining modeules: Getting Deals Under Contract, Deal Evaluation (I need that one, like, TODAY! Met with a motivated pre-foreclosure seller this morning.), Closing and Post-Closing videos.

Would also be most grateful for the Monster Purchase and Sales Contract.”

I took careful notes during the first video, thanks again for all the information in that first video in the series. Are the remaining videos yet available anywhere?

Thanks again!
Lyn

Thank you so much for your kind words. You can’t imagine how much I appreciate it. I’m still in the middle of producing those videos, but if you tell me which ones you need most, I’ll do my best to produce them in the most convenient order. Again, thank you for your kind words and please tell your friends about FreeRealEstateTraining.com! — Bryan Ellis
Lyn Weight on May 28th, 2008 at 2:33 pm

Another quick question: Do you use land trusts with your Sub Tos?

Thanks,
Lyn

Lyn - yes, I absolutely do. There’s some free training coming about Land Trusts in the near future, so watch your email for the announcement. — Bryan Ellis
wayne Lozier on June 21st, 2008 at 1:09 pm

The video was not available, what gives?

Hi Wayne - I just tested it and it appears the video is playing fine. Just give it another try! — Bryan Ellis
James on June 21st, 2008 at 4:11 pm

Great video Bryan. As an avid Investments specialist. Having alternative interest for others who frequent my pages is a must. Taking it to the table. Will get back with results ASAP
Charlie on June 21st, 2008 at 9:12 pm

Hi Brian: I’ve enjoyed the training so far on subject to. If I buy the house on subject 2 contract then write a 1 or 3 year lease to the home owner won’t I be raising their mortgage payment on a lease back and actually kicking them out of their house? If the mortgage payment is
$500/mo and their behind how are they going paying my fee plus the mortgage?

Charles - I recommend against a sale/leaseback without exception. Very bad idea. If the former owner gets upset, they can tie you up with costly legal action, and they’ll almost certainly win. Just get them out of the property and sell to someone else. — Bryan Ellis
Jeffrey Smith on June 22nd, 2008 at 1:23 pm

Bryan, great video. It\’s straight to the point without all of fluff.

Charlie, I strongly suggest *NEVER* allowing the home owner to stay in the property after you buy it (through any means including subject-to). You are asking for BIG TROUBLE down the road, because the courts are looking at that type of transaction as an EQUITABLE MORTGAGE instead of a sale/lease-back. If they default on the payments, then you cannot evict them. Instead, you must file a lawsuit for a judicial foreclosure which can take months while the (former) owner lives in the house with no payments.
Jeffrey Smith on June 22nd, 2008 at 1:25 pm

Charlies, one other thought, don’t even *THINK* about escrowing a Quit Claim Deed for the sale/lease-back. The courts view that as circumventing the owner’s right to due process and you’ll get stuck with the court costs for a Quiet Title Action.
William on June 22nd, 2008 at 7:20 pm

This is truly a great site, and you can’t beat the price…thanks Bryan!

wm
John Kinney on June 23rd, 2008 at 8:18 am

Great!! Video Thank you
Dustin Callahan on June 26th, 2008 at 5:07 pm

Thanks Bryan. Great Stuff!
Rick on June 27th, 2008 at 9:16 pm

Good info, As an addition you can ask the lender for waiver of the DOS. It has worked for me before and keeps things neat and tidy

Rick - excellent point. I suspect that this would work a lot more frequently than most would think. But I’ve never done it myself - glad it’s worked for you! — Bryan Ellis | FreeRealEstateTraining.com
Mike on June 29th, 2008 at 8:42 am

Hello Bryan, I just watched the Subject To 101: Basics video. AWESOME. I have attended various seminars where the speaker was way over my head. This video was very understandable and informative. I\’m looking forward to viewing future videos and receiving the \"Monster\" Purchase and Sales agreement.

Thank you for your insight and providing the free training.

Mike
Phil on July 2nd, 2008 at 6:29 pm

I do short sales, and we always use the land trust, but the title companies will not do flip using the land trust. I have to close out using hard money than close the back in.
Is there a solution to this where I woould not have to use hard money?
Bev on July 2nd, 2008 at 10:12 pm

Thanks for the video and info. Is there a way to satisfy any past due amount at the time of the subject to purchase without cash up front so you can assume the current payments only and stop the foreclosure process?
ron on July 16th, 2008 at 7:04 pm

Love this site. But I don’t have the pass word to get the RE contracts.

Thanks Ron! To get your password, join our email list using the subscription area on the right side near the top. Thanks! — Bryan Ellis
Kathy on July 20th, 2008 at 5:19 pm

How does a subjet to work with a pre-foreclosure that is a short sale?
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jeff on July 21st, 2008 at 9:08 pm

How do you watch the video? All i see is a black screen?

You should see a “start” button both in the middle of the viewing area and in the lower left corner. — Bryan Ellis
jeff on July 22nd, 2008 at 10:20 pm

Nope… no start keys… Do I need to sign in or join something else?
DANNY on July 26th, 2008 at 2:17 am

HEY BEV,
I WOULD HAVE TO ASSUME THAT IF THAT WERE THE CASE THEN THERE WOULD MOST DEFINATELY BE LESS FORECLOSURES ON THE BOOKS DUE MOSTLY IN PART TO JUST SELLING TO A FRIEND OR RELATIVE. KNOW WHAT I MEAN?
ALSO BRYAN,
MY DAD ALWAYS SAID THAT ANYTHING I CAN GRACIOUSLY RECIEVE FOR FREE SHOULD ALWAYS BE WELCOMED WITH AN ‘ATTITUDE OF GRATITUDE.’ WELL MY FRIEND,I AM SAYING NOW THAT YOU ARE VERY MUCH APPRECIATED!
GOD BLESS YA,
Linda on July 27th, 2008 at 2:29 pm

Hi Bryan,
I was a little bit confused about subject-to transactions. Thanks for making it easier to understand. Great info. Linda
Bev on August 6th, 2008 at 12:08 pm

Hey Danny,
In the case of my question, there is a distressed owner involved that person would likely have already asked any friend or relative they could to help them with catching up the arrearages or liens so they could just get back to making their payments and keeping current if that were possible or what they were interested in doing. It would be a safe guess too I think that friends or relatives don’t know about the formal subject to transaction. Those that do would have to be comfortable enough with the relationship to involve themselves financially with eachother - not common, and this is a breeding ground for strained relationships. Just asking a question that may have had an answer I wasn’t expecting - like yes you can do … (other than negotiating with the homeowner to pay arrearages or liens to make the deal go). Guess not.
ron on August 19th, 2008 at 1:56 pm

Bryan,

I can’t seem to get a pass word to the member’s section.

Could you please email me one.
thanks so much

All you need to do is enter your name and email in the box that’s to the right and near the top of this screen, then you’ll get one. Thanks! — Bryan Ellis

P.S
Great content.. please sign me up for the SEO webinar.
Jerrie on August 27th, 2008 at 4:26 pm

Thanks for the GREAT VIDEO…

PEOPLE LIKE ME LEARN MORE WHEN THEY CAN WATCH…INSTEAD OF JUST READING ABOUT RE INVESTING !!!

We learn better as we are visual creatures instead of just a straight brain dump of words…..

Keep up the great Video’s….

Thanks

Thank you! More videos on the way! — Bryan Ellis
Steve Wagner on October 11th, 2008 at 9:39 am

Bryan, I’m not the same as I was at one time, Since being diagnoised with Fibromyalgia I noticed my retention and comprehension is gone. I’m on disability and hate it. Over the past year I’ve been doing short sales, after 1 year or more and 50 deals I finally did one and netted $ 11,000.00. Not much for so much work, when I tried to reach out to some of the gurus for help I got ZERO help, love to name them but would rather save my breath.

Now that I came across your info I’m going to watch and hope I can learn this and retain it. I have ONE burning QUESTION - Why are you doing this for FREE… what’s the CATCH because no ONE does nothing today for FREE even the most dedicated CHRISTIAN…

I’m not complaining Bryan just wondering, as you can see I’ve become a skeptic so I’m sure others would be interested to know why your doing this FREE…

Bryan I hope this site and the training your providing FREE and if it’s as detailed as you say it will be then I’m hoping this will change my life and help me get off DISABILTY, it’s not easy supporing my family of 6 on disability.

I’m tried of struggling, feeling like a looser, I have nothing to offer, that I’m stupid and just can not figure this stuff out.
As I said I noticed I’m not the same, my retention, mememory, comprehension, confidence. I’m not afraid of taking action. My issues is knowing what to do and where do I find the help. No one does nothing today for nothing… I’m in a catch 22… I want to learn but cannot aford it, I’ve even offered several gurus when I was doing short sales 70% of my first 3 to 5 deals just for them to help me or look over my package… now how could they lose with that deal but of course NOT one of them wanted to help.

I’m not looking for a handout, I told them I’m looking for a handup so I can learn to do this right and get on my own and off Disability.. Anyway, I just wantd to say thank you for providing this and wanted you to know there are many others like my self that are STUCK in live and I hope I can get UN-STUCK and feel like I’m contributing to society like I once was.

You need to know that GOD will provide 10 times more to you because of you being a servant to us and helping many of us that you have no idea who we are or what type of back ground we have, for you to provide your knowlege and infomation to possibly help many of us become independent and maybe independently wealthy is hugh and all of us will owe you for helping us make that happen…

I hope I can be one to personally shake your hand and tell you in person that you helped me go from where I am to who knows where. Now if I can only make it happen with what your providing…. I hope so…

Do you have one link to watch all of these or will they just come when you want to send them because it would be nice to have access to what ever you have and for me to go back over and over on these which I find I have to do to retain what is being taught.

Until I find a new direction and something that works continue with doing short sales, Although I hope your program will help me learn other ways to invest in realestate so that when the market shifts I’m not sitting there just knowing short sales.

I want to thank you for your time and hope I can make this happen.
Harry on October 17th, 2008 at 11:31 am

Well Bryan,

I went to watch the video “Subject to” and it said Video Not Available. Please advise!

Thank You

Are you referring to the video on this page? I just clicked “play” and it appeared to work… — Bryan Ellis