Finding Buyers for Subject-to Properties

At this point in time, you can definitely get some great deals on subject-to properties. After all, there are frankly just more out there that are decent values than any one real estate investor could ever handle. However, if you are looking to make some money on your subject-to deals “fast” (and I need to emphasize that I do not mean “overnight” when I say fast, regardless of what some real estate gurus are still teaching), then you will need to do some prep work before you ever start buying up properties using subject-to transactions.

In order to find buyers for your subject-to transactions right away, you will need to find those buyers even before you start finding lots of subject-to properties. Generally, I have found that the best place to find buyers for much of anything in this market when you want something done fast is to work with other real estate investors. There are lots of investors looking to buy properties for pennies on the dollar, so when I am looking at subject-to transactions I try to determine how I can immediately start making money with them. In some cases, they are near enough payoff that the payoff sum is low enough relative to the appraised value that they are a good deal. However, you need a buyer lined up before you buy if your plan is to flip for a profit. Make sure if you are planning to flip to another investor that you have lots of information about how houses are selling in the area and how similar endeavors (if there are any) have worked out recently.

Another great source of buyers lies in the pool of landlords and want-to-be landlords. When you are buying a house for the purpose of renting it out or selling it to someone else to rent out, you need to make sure that the house is in a good area that people want to live in. You also should check the homeowner’s association covenants to make sure that house can actually be rented. I know far too many investors who have been stuck with properties that they thought they could easily rent out because an HOA had covenants in place that prevented rental properties in the neighborhood.

In short, you can still make money on subject-to’s in the short term as well as the long term. You are just going to need to do a bit more research up front before you buy. This will protect you and insure that you have a buyer on hand so that you can do the deal the way you want.

Author Info

Peter Vekselman has been successfully investing in real estate since 1996. He has completed over 1200 real estate deals, owned a construction company, been a private lender, and owned a property management company. Peter currently works with clients all over the US helping them achieve riches in real estate investing. For more information please visit www.CoachingByPeter.com.