Private Lending on Subject To Houses
My favorite deals are 'Subject To' deals. My cookie-cutter approach is to have someone give me a property subject to their existing mortgage and then I get a small loan from one of my private lenders to handle any TLC that is needed on the property. My private lender gets a 2nd mortgage on the property.
I have NONE of my own money in the property. I am also setting myself up for a number of paydays because my exit strategy is rent-to-own. I get paid with the tenant/buyers option fee, the monthly payment spread between what they pay and what I have to pay on the underlying mortgage and finely the payday when they buy the house and everyone gets paid. If the seller carried back a 2nd mortgage, I might even ask for a discount to pay them off, another payday.