Why make an offer?

Why make an offer on a property if you are doing subject to… investing? Someone please clear this up for me.


Buying a house subject-to is the exact same thing as buying a house normally.

Except… instead of assuming the loans, you are taking them over.

I will buy your house “subject to” the underlying loans. That is where the term comes from. It means the loans are staying in the sellers name rather than you assuming them and sucking up to the lenders.

Thank you for responding!

I understand the part where you tell the seller about the subject to… and taking over their payments. I was confused about the part where I see others say they would make an offer on the house. So, when an investor say “offer” does he mean he(the investor) brings up the idea of a subject to… to the seller or does he mean “I will buy your house for 150k”, like the normal way? I’m sorry if the way I ask questions confuses anyone.

Thanks again,

What an offer means is an individual thing. It can mean a verbal agreement or it can mean a written purchase agreement.

If you are looking to do this… you should ask the seller before you go to the house in my opinion. You are dealing with a minority here, most sellers who are current on their payments won’t do this.

Just say… “Peter… it looks like I can take over your loan of 400k, pay for all closing costs, and you can move whenever your ready. But the only way I can do that is if the loan stays in your name. Is that something that we should even discuss?”

What do you mean why make an offer? How much do you plan on paying the seller after your buyer pays you?

If presenting the seller the terms under which you wll purchase the property is not an offer, then what is your definition of an “offer?”

David T you are right in that a offer is the telling the seller how you are planning to buy his/her property

I have just come back from a real estate trip in CA NV where i set up some bird dogs and some small home offices to do some buying in the above states

It was hot but was a good and work able trip

Thank you all for responding. It makes sense now.