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When you're considering buying real estate as an investment, it's a good idea to weigh the pros and cons. That's especially important with "subject-to" real estate, because there can be risks and rewards with this type of property that are different from traditional purchases. Here's what you should be considering, before you decide on this investment strategy.
On the "pro" side of buying "subject-to" real estate is the way you can acquire multiple properties for your portfolio. Additional benefits include:
With any real estate transaction or investment of any kind, there are cons that come along with the pros. When you weigh them carefully, here's what you should be thinking about:
If you don't have the money or credit to buy investment properties, buying "subject-to" can be a good choice if you understand and mitigate the risks. You may also want to choose this option if you're trying to acquire a lot of properties quickly, and you want to save money over traditional purchasing options. For people who buy "subject-to", there can be big opportunities to buy quality properties they might not be able to afford under typical circumstances.
But it's very important that you're aware of the risks and legalities. Getting an attorney to help you with the first few properties, and to collect and make the mortgage payments on all the properties you buy, can be one of the ways you can make this type of transaction safer and better for you and the seller.
Specializing in Commercial Real Estate and Luxury Homes in Ponce Inlet, Ormond Beach, Daytona Beach and Port Orange
After graduating from the University of Central Florida with a degree in Finance, I spent over twenty years in wealth management in Central Florida. In addition to Wealth Management, I have operated Hotels, Property Management Companies, and multiple internet ventures. My professional knowledge has helped me succeed in my own entrepreneurial endeavors. My personal business experience has led to growing many businesses as a private equity investor and managing partner. I am currently involved in business ventures within the Real Estate, Software and Apparel space.
Daytona Beach has been my home for more than thirty years. I take pride in my community and have contributed to its success through participation on a number of boards. I am currently serving as the Chair of the Daytona Beach Chamber's Economic Development Committee. This particular committee has been focused on the redevelopment of Daytona's beachside community. I look forward to continuing to serve this community through both personal and business endeavors.