What “Subject-To” Means
A subject-to acquisition involves purchasing a property while the existing mortgage remains in place. Title transfers to our entity, and the underlying loan remains outstanding under its original terms.
When We Consider Subject-To
- Performing mortgage with manageable payment terms
- Stable three-family or small multifamily asset
- Payment structure supports conservative DSCR targets
- Cooperative seller seeking a structured transition
What We Do Not Pursue
- High-risk, highly leveraged, or complex structures
- Transactions dependent on immediate rent spikes to work
- Situations where disclosures or documentation cannot be made clear
Risk Management and Compliance
Subject-to opportunities receive heightened review. Our diligence typically includes title verification, mortgage document review, insurance alignment, and transaction documentation standards. Where appropriate, legal review is obtained.
Capital Discipline Still Applies
Even when structured subject-to, our underwriting standards remain unchanged: conservative rent assumptions, realistic expense modeling, defined reserves, and long-term ownership viability.
Submission Requirements
- Property address
- Current rent roll
- Monthly mortgage payment (PITI)
- Loan balance & interest rate (if known)
- Insurance & tax amounts (if known)
- Brief condition summary