Real Estate Investor Articles

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:

Follow up:

"I'm not sure if I can buy your house for that price, but would it help you at all if you did not have to worry about making the payments any more?" Motivated sellers usually reply, "yes, that would really help." If you don't get that type of response you might not be dealing with a motivated seller.

If they ask you what you mean you might say, "well, I could make payments to you for the amount of your loan while I am selling the property if I decide to purchase the property from you. Might that work for you?"

So far, you could be talking about either a lease option or buying the house subject to in the example. How you actually structure it can be discussed on the paperwork. In a future article, I will be discussing some strategies on what to do if you present an offer to buy the house "subject to" and, after discussing it, they do not feel comfortable with it.

Until my next post,

James