Whether you are a seasoned investor or just a beginner, likely you have heard of the acquisition strategy of “Subject To.” I am here to tell you that this needs to be a key tool in your investment tool belt! My favorite variation of this technique is purchasing “Subject To” and selling on a “Lease Option.” Wow, if you want to clear a room, just start throwing those two word combos around! Non-investors and some investors alike are puzzled by this terminology. OK, so what is a “Subject To,” you ask? Well let me tell you: It is one of the most profitable forms of acquiring investment property with little or no money out of your pocket. Do I have your attention? Yes, I said potentially NO MONEY DOWN! Do you know anyone that would turn down a profitable deal with little or no money out of pocket?? If you are one of these scant few, please call me when you are presented with this opportunity and decide to “pass!” But for the wise investor, this method allows you to become the owner of record and leave the mortgage in the seller’s name! Here is the concept: First you find a motivated seller (or better yet, they find you!). Most of the time, these sellers are going to have little or even no equity in their properties. This may be true or simply their impression of value. One of the most important questions you can ask is “What is your payoff?” Follow this up by asking, “Would you sell it for that amount?” If you don’t ask, you won’t know. This will save you a lot of time (and money!). Once you have determined your seller is motivated enough to proceed, you explain that you can purchase their home by leaving the existing financing in place. You can obtain ownership, while the loan stays in the sellers’ name. Think of all the possibilities this affords you as an investor:

• To start with, you eliminate the majority of fees and closing costs associated with new mortgages.

• Since there is not a new lender, there are no additional finance charges! Think of the extra money you can pocket.

• Next, there is no qualifying for this type of financing.

• Think of the tax advantages (ask your CPA).

• It does not affect your credit standing, your debt ratio, or even require you to have an income! This presents a tremendous amount of opportunity.

• You can purchase with this method, and hold for long term (rental), you can flip the property to another investor or retail buyer, or use it as a construction loan short term while doing repairs and then refinance or resell.

All in all I think you get the idea that the possibilities are limitless! What more could you ask for than unlimited funding for your deals and no bank restrictions or guidelines. Invite everyone you know, that has a remote interest in investing, to our October GAREIA Augusta Chapter meeting, as we will be discussing this technique and other topics in further detail. I will show you how to build $30,000-$40,000 net profit or even more into each deal with little or no money out of pocket!

Real Estate Advisor asked:

Second home sales have been increasing over the last few years with more people becoming second home owners. In 2005 alone, 40 percent of the homes sold were second homes. Demographics, all time low mortgage rates, and healthy rise in home prices have contributed to this development in the second home market. Besides these, a major factor that has helped augment the buying and selling of second homes is the real estate professional.

The National Association of Realtors conducted research on the profile of second-home owners in 2006. According to the NAR report entitled ’2006 Profile of Second-Home Owners’, a majority of second home sales transactions are conducted using the services of real estate agents.

The statistics are remarkable; 64 % of vacation home buyers purchased their home using the services of a real estate agent by the end of 2005 – a marked increase from less than 50 % of vacation-home buyers in 2003. Also, 65 % of investment-home buyers purchased their home with the help of a real estate agent – an increase from 53 % of pre-2003. In comparison, only 14 % of vacation-home buyers and 7 % of investment-home buyers purchased directly from builders from 2003 to 2005.

The growing role of the real estate professional is evident from the following figures:

1. Of vacation home sales made, 71 % of them were second homes and 74 % of the sales were made using the services of a real estate agent.

2. Of the investment properties sold, 85 % of them were previously owned and 62 % of the sales were made using the services of a real estate agent.

The use of real estate agents in second home sales transactions varied according to the home’ location.

1. Buyers used a real estate agent more frequently while purchasing a vacation home located in a suburb/subdivision (56 %) or a rural area (57 %) than for homes in other locations.

2. About 66 % of buyers who purchased an investment property in an urban/central city area or in a suburb/subdivision, used the services of a real estate agent more frequently than those who purchased a home in other locations.

Real estate professionals continue to be the first source of information to second-home buyers (38 % of vacation-home buyers and 34 % of investment-home buyers). The real estate professional also plays a major role when second-home owners plan to buy additional properties. If you are thinking of buying a second home or vacation home, seek out the services of a real estate agent to guide you through your next home purchase.

1. The percentage of second home owners who are more likely to use a real estate agent in their next home purchase is quite high. Among vacation-home owners it is 79 % and investment-home owners 73 %.

2. Among second home owners, 65 % of vacation-home owners and 64% of investment-property owners are more likely to use a real estate agent in their next home sales.

Given these statistics, it is no wonder that the real estate agent plays a pivotal role in helping people buy and sell second homes. So whether you are a second-home buyer or seller, enlist the services of an agent for a smooth, hassle free real estate transaction.

Property Select – Overseas Investment Property asked:

Britons who are considering buying a holiday home abroad have been advised to consider the Portuguese market.

Portugal recommended to British buyers The country was praised by Country Life for offering a variety of leisure attractions and a slower, more relaxed pace of life.

Portugal was also described as a charming destination that was very popular with tourists from the UK, partly because it offered hot and sunny weather all year round.

Country Life stated that this had led to it becoming a hotspot for overseas property buyers, including expatriates and holiday home owners.

According to figures cited by the magazine, Portugal is now home to more than 38,00 British expats.

“Portugal has certainly been in the top five since those emigrating discovered the joys of one of the longest seasons in the Mediterranean,” it commented.

According to official figures, a record number of British citizens set up home overseas during 2006.

Portugal could be a good destination for overseas property buyers to consider, experts have advised.

Investors According to the SaveBorrowSpend website, the Silver Coast region is proving to be especially popular with foreign investors, as it offers a number of bargains.

The extent of its affordability was highlighted when the portal said a nine-bedroom house located in the area could be snapped up for just £160,000.

Furthermore, it stated that apartments on the Silver Coast – an area well-known for its attractive beaches – would set people back about £40,000.

SaveBorrowSpend added: “The downside is you will need to brush up on your Portuguese as hardly anyone in this region speaks English.”

However, the portal said this meant the area was likely to be “relatively unspoilt” and appealing to people who enjoyed “breaking new ground”.

This comes after financial services company Baydonhill predicted that Portugal would be one of the most popular markets for British investors this year.

People in Ireland are acting quickly in order to avoid the possibility of missing out on cheap trips abroad next summer.

Irish plan holidays in the sun Budget Travel stated that there had been unprecedented demand for last-minute holidays during summer 2007 because of the poor weather.

However, demand was so high that it outstripped the available supply, which resulted in many being forced to brave the wet conditions in Ireland.

This has led to many acting quickly this year instead of facing the possibility of missing out once again.

According to Budget Travel’s head of marketing Clem Walshe, hot and sunny locations such as Portugal are proving to be very popular.

He told the Irish Independent: “People definitely got caught out last summer – a lot of people couldn’t get the holiday they wanted.”

Mr Walshe added that Spain was also attracting many Irish visitors, in particular the Costa del Sol.

Last week, the Limerick Post quoted a local travel agent who said that the number of people heading abroad for the festive season was now higher than ever.

Tony Brazil of Limerick Travel said that many of these were heading to places such as Spain and Portugal in order to stay in their holiday homes.

Spending Christmas overseas is becoming increasingly common in Ireland, it has been reported.

Irish holiday home owners head abroad The Limerick Post quoted a local travel agent who said that the number of people heading abroad for the festive season was now higher than ever.

Tony Brazil of Limerick Travel stated that that Spain and Portugal were of the most popular destinations for a number of reasons, such as their hot weather and good transport links with Ireland.

However, the fact that many people owned holiday homes in these countries was cited as another factor behind their appeal at this time of year.

Mr Brazil commented: “There are a huge number of people now who own accommodation abroad and are spending the holidays in places like Malaga or Portugal.”

He added that all the extra flights provided by low-cost-carriers had been proving to be very popular with Irish leisure travelers.

According to the Association of British Travel Agents, a record number of people from the UK are also set to spend the festive season abroad this year.