Generating Cash For Subject To

Okay. I’ve completed a course on CD on Subject To’s. I still don’t undertstand where am I going to get the cash to fund the deals. I don’t have family or friends with money and they say only use hard money lenders as a last resort.

It depends on many factors. You can find private lenders who are willing to invest with you. They of course need to trust you, so your presentation and image is important. How do you find them? advertising, networking…etc. They are the people with savings, IRA…etc.

Other sources:

  1. Wholesale couple of houses and save up the wholesale fee
  2. put properties under contract where the seller gets his equity when you sell and not up front. You still need to make the mortgage payments though
  3. credit cards
  4. line of credit
  5. savings if you have any


I guess I don’t understand what you’re saying about funding the deals. When you buy a house subject to the existing financing, the owner is signing over the deed to you and you must make the payments. The financing is already in place and there is no funding needed. Are you talking about finding the money for a title search or something like that? Are you talking about rehab costs? What exactly are you asking?

Fadiz gave you a good list of sources of funding. I would like to add that you should have either some money or credit as a reserve. If you don’t have either, I would not do a deal until you do.

Good Luck,


By funding the deal, I meant catching up any payments, and funds for paint and carpet, and funds if I can’t get a lease option person in there quick.
I’m thinking of maybe getting a line of credit and start that way and at the same time wholesaling some deals. And then trying to market for private investors.

kendra that would be a good way to start. sometimes you might want to get a t/b in there before you get the deed so you don’t have to start paying the mort. paymt. also sometimes you can negotiate with the t/b for doing the work them selves and earning the option money while doing some of the work. If the sellers are in the position, you can make them see that it would be better to pay you to take over the mortg., you just have to feel them out a little and go from there. for example, this guy that I’ve been working with, he took over this house and the seller paid him 10,000 cause he made the seller realize that it would be cheaper to do that than to sell through a realtor and hold that property until it sold. Good luck and God bless.