Finding Subject-To Deals Is Easier Than You Think

Your main task if you’re using my Niche2Wealth strategy for real estate investing is to find motivated sellers who are willing to sell their home at a discounted price. They don’t have to be highly motivated, but they do need to be somewhat motivated. I call these subject-to deals, as you’re not going to the bank to secure funding for these homes. Rather, you’re buying the home subject-to the existing loan.

Now some people think finding subject-to deals is difficult. Some have taken a course or read information online that might have steered them in the wrong direction. You have to be careful what you’re reading because not everyone who says they’re experts in the field truly are. This is why I’ve created multiple courses filled with expert tips and techniques that I’ve been using for many years to create my successful real estate investing business.

Today, I’ll share with you five excellent ways you can find subject-to deals.

1. Look For New Subdivisions

If your area has new subdivisions being constructed, you can start scoping homes around that new area. Check out the neighborhoods that are close to that subdivision, because some of them will be willing to sell. The reason? They know that homebuyers are going to probably choose to live in a new home over a used home. Knowing this, take the time to send some direct mailers out to the surrounding areas.

2. Look For Homes That Have Been Sitting On The Market

Look through the MLS for homes that have been sitting on the market for more than 90 days. If you see a home sitting there that long, it’s a red flag. And, potential buyers think it’s a red flag too, figuring that if it hasn’t sold yet, there’s something majorly wrong with it. However, a savvy real estate investor may be able to get in there and do some serious negotiating, getting a great deal on such homes.

3. Look For MLS Expired Listings

You might already be doing this, but if you’re not, look for those listings that have newly expired or are about to expire on the MLS. Those homeowners may be ready to negotiate, especially if you go in using the subject-to strategy.

4. Seek Homes In The Pre-Foreclosure State

A large part of your target audience will be those that are behind in their mortgage payments. This is the “pre-foreclosure”

time period where many homeowners are getting nervous about the possibility of having to foreclose on their home. A great way to find this niche is to market directly to them online. Of course, your direct mailings will reach this niche as well.

5. Word of Mouth

As a real estate investor, you should always be letting people know that you’re in the business of buying homes – especially from those who are having some sort of issue with their mortgage payments. Be sure you’re giving your business card out all the time, as many people will remember you when they hit some sort of life situation where they’re wanting or needing to offload their home fast.

Finding subject-to deals is easier than many people think. Take these tips into consideration as you continue to build your real estate investing business.