Being a new to investing, what would you suggest I try first - buying a property that has 20-30K equity using conventional loan, rehabbing the property, then renting or selling it - or should I try finding a property that I can purchase using “subject to”?
Is there a major difference between the two? I would still have to get either conventional loan or hard money lender to buy subject_to, correct?
Whether you buy with conventional financing or via subject to is not a major issue. One method is not better than the other.
When you buy a property “subject to”, you are simply taking over the payments of the owner. You get the deed, the owner keeps the mortgage, and you make the payments. Therefore, you don’t need to get a loan when you buy a property subject to.
Subject to financing makes conventional loans obsolete in a sense. I always buy sub2 if available. You will save closing costs, appraisal fee and time. Purchase price subtract loan balance equals down payment. These are wonderful as you get title and no loan in your name, and no hit to your credit. If buying from motivated sellers, and you are buying from motivated sellers, then sub2 is available usually. Even if you have no credit you can buy a home w/sub2 !It’s a home run ! :beer