Purchasing Subject2

I am fairly new to investing and am trying to understand this method, but for some reason I cannot grasp it entirely. Could someone please explain this to me.

(I know it is kind of general question, but maybe someone has time to help me out…please)


subject to…loan approval

subject to…repair estimates

subject to…appraisal numbers


Here is an article by John $Cash$ Locke that is entitled “subject to investing for the beginner.”:


Other articles by Locke can be found under Investor Information>Real Estate Articles>John Cash Locke.

I also have his course, which is very reasonably priced and I highly recomend it.


Thanks Ted,

I think I am making this more complicated in my head than it is.

subject to…partners approval???

If this is correct then am actually suprised any lender would allow this as it does not lock a buyer in at all…could you not also use any financing, inspection, or any other contingency to do this?



The term subject to from this point is “subject to existing mortgage”, meaning I am purchasing the house while leaving the loan in place. I am not 100% sure about this, but I believe it is lender/lawyer term and the term appears on the HUD1 settlement statement as well. It is like buying on owner financing where you are paying the seller’s bank directly.

I just starting reading a book written by Wendy Patton on subject 2 and lease options. I am not even 50 pages in and already I feel like I could go out and do one. These seem like really sweet strategies to use right now due to the fact there are a ton of people that all of a sudden cannot qualify for mortgages but maybe have been saving for the past year to buy.


“subject to partner’s approval” is a contingency (weasel clause) used in a sales contract.

“subject to the existing mortgage” is how Fadi explained it.

2 totally different uses of “subject to.”

There is much to learn JD. And as you learn, you will learn you have much more to learn. Keep studying.

One other thing: If you are not familar with the basic terminology used in real estate consider taking the local classes to become a real estate sales person.


JD… Stop reading that book. Its not working. It must be missing something…

Make arangements wiith John Locke and read his book… Listen to his CDs… Log into his website and ask him for help…

Michael Quarles

Thanks. I am going to continue to study and try to learn as much as possible. I am a local realtor, but am much more interested in investing than I am in “selling” real estate. I have started doing short sales and I feel like there ways I could be helping some of these people out and making money at the same time and I am trying to learn more to do that.

Thanks for the advice guys.

Ok, So I have read both of John Cash Locke’s articles on Subject to, where can I find more? I cannot seem to find anything else on here about Subject to by JCL. I joined his website but It wont let me in still until someone verify’s my email…any suggestions?



You should buy his course :slight_smile: I am one of his students… go to Cash Now USA website and order the course, or talk to John. He is a member here under the name Cash

I understand the concept of the Subject to. At the time for closing, do we go to a title company? Then run everything through them to get the deed changed?

Thanks in advance!


You want to buy Subject To, but you never want to sell Subject To. If there are a ton of people with downpayments who can’t qualify for a loan, sell on lease option or on Contract for Deed so you retain control of the deed.