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San Diego Lease Options and Subject To's (aka "Getting the Deed") are two very popular ways to purchase San Diego real estate with little or no money down. Acquiring San Diego investment real estate can be handled with many different approaches, but these two techniques can be implemented with little or no money down in most incidences.

A lease option is a technique which involves gaining 'control' of a San Diego property, but not owning it. It is the right to possess a property now and purchase that property at some future date with terms you define when you buy it.

A "Subject To" is getting the deed to a property without getting a mortgage for the home. Instead, the seller signs over the deed to his home 'subject to' the existing mortgage. The buyer in this case makes the mortgage payments on the old loan, but does not need to get a new mortgage (or ask for approval through an assumption of existing mortgages) to acquire this home.

Both of these techniques usually require little or no money down. In both of these techniques it is possible for the buyer to get money from the seller or the purchaser (or both!) in the beginning of the transaction. These techniques, when used properly, will provide for huge profits. They are both awesome, and when used hand-in-hand by investors are almost an unbeatable pair!

Why Knowing Both Techniques Means More Great Deals For You!

I can't tell you how many times I have heard, "If I don't get the deed, I don't do the deal". With over 20 year's of experience (since 1985) doing both types of deals, I have to disagree with that statement. The more tools and techniques and ways you have to purchase property or to structure a deal, the more likely you will be able to work with a motivated seller to come to a potential solution. If you only buy "Subject To", you'll walk away from a LOT of great deals in your real estate career, but you must know when each technique is appropriate to use. Finding a motivated seller is the first step to any good real estate deal.

There are many types of motivated sellers, but we tend to think of motivated sellers as the ones that are financially distressed. I like to look at motivation from a much wider range. Let me explain. I like to divide motivated sellers into two groups: Situation Sellers that have Bad Debt Solution Get the Deed NO Lease Option! VS. Situation Sellers that have Good Debt Solution Lease Option or Get the Deed!

Sellers that have "Bad Debt" are those in financial trouble. They might be behind on a mortgage (in foreclosure), have lost their job, acquired an illness, going through a divorce, etc. In these situations, you need to get the deed either with a Subject To or an outright purchase. Your main concern is that this type of seller will continue to have financial problems that could affect the title to "your" property if the deed is still in their name. For example, if this seller gets judgments from creditors, they can attach to any real estate the seller owns - they will have to be paid off before you can exercise your option to buy. That's why you want to get this type of seller off of the title. Sellers that have "Good Debt" are those NOT "in trouble" in the traditional sense, but they do have a reason motivating them to sell. Their problem is not one of financial desperation.