CalculateRealEstateROI

Strategy

Subject-To Strategy

Acquiring property by taking title 'subject to' the seller's existing mortgage, which remains in seller's name.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Core concepts

Capital efficiency

Skip down payment and qualification; assume existing favorable rate.

Due-on-sale exposure

Lender right to call loan exists but rarely exercised in current rate environment.

Examples

  • Buying $0 down with existing 3.5% loan in place; cash to seller covers their equity.

Practical applications

  • Distressed sellers needing fast exit.
  • Investors leveraging low legacy rates.

Common mistakes

  • Ignoring due-on-sale and insurance vesting issues.
  • Operating without attorney involvement.