Subject To Strategy: NO CREDIT Real Estate Investing Explained

Investment Strategies
Subject-To Strategy! This our go-to NO CREDIT Real Estate Investing Strategy! This is probably one of our favorite creative acquisition strategies to use to help distressed homeowners and landlords. A Subject To strategy is a shortened down name for the full name: Subject to the Existing Mortgage. When you acquire a property using a subject-to strategy, you’re acquiring it with the existing mortgage intact. Essentially, you’re taking over the mortgage payment and the ownership of the property. The advantage of this is that you didn’t have to get new financing from the bank. Plus, if done right, you can acquire immediate equity as well. In this video, we’re going to break down the subject-to strategy.


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In an ideal subject-to scenario, you’re looking for a distressed seller looking to get out of their property and/or the problem ASAP! This could be a pre-foreclosure scenario or they may have other life events that would require them to move. In such cases, a subject-to acquisition strategy can not only speed up the closing process but you won’t have to qualify for a new loan through the banks.

Here are some of the other benefits of a Subject-To Deal acquisition:

1.) No credit check necessary
2.) Quick Closing Process
3.) You can create a “wrap-around” agreement on top of the existing mortgage obligation.
4.) No money down negotiation possible.
5.) Solve someone’s life challenges

A lot of people call the subject-to acquisition strategy subject 2 or subject two. The correct terminology is Subject-to.

In the past, we’ve been able to do a subject-to deal by creating a new “mortgage” between the seller and us (the buyers). We created an owner financing agreement that would match the payment terms of the existing mortgage that the seller has. The seller wanted to get out of the property quickly. From the day that we found the deal, we closed the property in 7 days! Talk about speed! So this deal was a combination of an owner financing + subject-to acquisition.

If you’re looking for information about real estate investing for beginners, this is one of the strategies to learn and have knowledge of. I hope that this video gave you some breakdown as to Subject To Real Estate Investing Explained for Beginners.

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The Kwak Brothers are millennial real estate investors who have acquired over 82 Units of Rental Units and have raised over $20,000,000 of capital for their real estate deals. They are based out of the Chicago-land area and they are dedicated to helping hard-working people become financially free real estate investor! They specialize in owner financing acquisition and raising capital. They are the creator of the FORCE Strategy (Find the deal, Owner Finance It, Raise the Capital, Cashflow It, and Expand your Financial Freedom)

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—DISCLAIMER— The suggestions, advice, and/or opinions that are given by Sam Kwak (The Kwak Brothers) are simply opinions. There are no guarantees of set outcomes. Listeners, guests, and attendees are advised to always consult with attorneys, accountants, and other licensed professionals when doing a real estate investment transaction. Listeners, guests, and attendees are to hold Sam Kwak, Novo Elite, Inc. and the Kwak Brothers brand harmless from any liabilities and claims. Not all deals will guarantee any profit or benefits. Listeners, guests, and attendees are to view and listen to all materials and contents furnished by the Kwak Brothers as a perspective based upon experience.

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