New York Real Estate Resources

You will need to find a great local insurance agent that understands what you are doing when you are buying houses "subject to" to the existing financing to make sure that property is properly insured.

An Insurance Agent is a key member of your Real Estate Investing Dream Team whether you are buying traditionally or buying "subject to", but since the loan remains in the seller's name, it is important to make sure that your insurance agent writes the correct policy to make sure that you are insured properly.

Remember that insurance premiums can vary widely from company to company for very similar coverage amounts. Be sure to get competitive quotes and to get the quotes BEFORE you buy the property. It is best to know your insurance expenses before you commit to buy a property.

Until my next post,

James

Once you buy a house "subject to" the existing financing, you'd like to be able to sell or occupy the property quickly and with a huge marketing advantage right? Well, being able to offer the property on a "Rent To Own" can give you that marketing advantage and get your property sold or occupied very quickly--especially in our current credit markets.

By offering creative financing options like a "rent to own" to folks with less than perfect credit, but with enough income to afford the property you offer something that only a small percentage of sellers are offering in your market.

Provided you can collect a large deposit toward the purchase and make sure that the

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In my last few articles, I discussed how buying a house subject to the existing financing is similar yet different from leasing a house with an option to buy. I talked about how one is not necessarily better than another, but that each has its advantages and disadvantages depending on what you are trying to accomplish.

Now, I will share with you a strategy for making an offer to buy a house subject to the existing financing where the similarities between "subject to" and "lease options" are used to make a stronger, more understandable offer to a seller.

First, you might suggest in a trail close something like this:

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Here's another Gloversville property that was submitted by a user that we will use as a teaching tool for our New York Real Estate Resources real estate investors. The property address, in case you want to look into it in more detail is: 116 Noroboro Rd, Gloversville, NY 12078.

In the table below I show what happens to the value with a modest appreciation rate. Can you have years where this (or any other property for that matter) go down in value? Yes. Might it not go up by as much as we are estimating? Yes. Can it go up by more? Yes. Only time will tell what will happen.

As you can see from the table above, if we assume an appreciation rate of 4.2% per year, then the property value eventually reaches $48,287 after 10 years.

Finding great deals in New York takes a lot of persistence. Usually you will have to look through many potential deals before you find the one that you want to invest in. A way to accelerate this process is to have an investor friendly real estate agent in your corner helping you out by sorting and sifting through additional deals for you.

Until my next post,

James

The title of this article: "What's Better: Lease Options Or Subject To" is misleading because each one has its pros and cons. Neither using a lease with an option to buy or getting ownership and paying on an existing mortgage is always better or worse than the other. In fact, there are times when you'd be better off using one and times when it is to your advantage to use another.

In two previous articles, I discuss how "subject to" is similar to "lease options" and how they differ. In this article I will share an example of when it might be better to use one over another. Of course, there are other examples that you might discover based on your unique transaction, real estate market or personal situation, but here are two examples.

Here's the first example: if you are uncertain about whether a real estate market is going up or down do you want to commit to owning a property? In times when the market has a strong chance of going down, it might be a an advantage to

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In my last article, I shared with you how lease options and buying a property "subject to" were similar. While the mechanics of how they are implemented is very different, both offer you the ability to control a property--without getting a new loan--and, if you market and structure it correctly, can allow you to profit both on an up front deposit, on-going monthly cash flow and a large back end pay day when you sell the property.

So, what is different between using a lease with an option to buy and buying a property "subject to" the existing financing?

First, when buying a house "subject to" you are actually getting the deed to the house which will make you the owner of the house. This may give you

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For real estate investors that want to find deals that do not require the go through the hassle of applying and paying for a new loan each time they acquire control and responsibility for a new property, lease options and buying "subject to" the existing financing seem like great alternatives.

In this article, I'd like to share with you how lease options and "subject to" are similar and then in my next article, I will share with you some of the key differences.

First, with lease options and buying a house "subject to" the loan stays in the seller's name. That means the loans on the property remains on their credit report.

Second, with lease options and buying a house "subject to" you usually make a monthly payment that covers the underlying loan for the seller. While this is not ALWAYS true, it is usually true that the seller wants, and often is able to get you to make, payments that pay for his entire principal, interest, taxes and insurance payment.

Third, with lease options and buying a house "subject to" you usually put very little, if any, money down. It is unusual

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In my previous two articles in this series on what "subject to" is and what a typical "subject to" deal looks like, you learned quite a bit about the big picture of how agreeing to make payments on an existing loan when buying a house actually works.

In this article, I will share with you what I believe some of the benefits are for buying properties "subject to" the existing financing.

First, and this is a big one for investors in our current credit markets, you do not need to go out and get a new loan. There are large numbers of investors that have great credit and can afford payments on a property, but due to our current credit market are being denied new loans. It sure doesn't help that many lenders have limited investors to having a total of 4 loans in their name before cutting them off from getting new loans. So, being able to start making payments on an existing loan make buying the properties much easier and allows you to buy more than 4 properties that many lenders limit investors to under the new lending guidelines.

Second, there are no loan fees. While there are certainly

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