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How do I analyze properties with subject-to financing?
How do I analyze properties with subject-to financing?
Cindy Bellford avatar
Written by Cindy Bellford
Updated over a week ago

If you're purchasing a property and taking over the existing financing from the current owner (typically called a "subject-to" agreement or purchase), it is possible to analyze this scenario with DealCheck's rental, BRRRR or even flip analysis tools.

The only difference from analyzing traditional property purchases is how you should fill out the Financing section of the Purchase Worksheet.

Instead of entering the information for a new loan, you need to enter the details of the seller's existing loan you're taking over:

Financing worksheet for an existing loan
  • Financing Of: select Custom Amount.

  • Loan Amount: enter the current outstanding balance of the existing loan.

  • Loan Type: select the type of the existing loan, most likely Amortizing.

  • Interest Rate: enter the original interest rate of the existing loan.

  • Loan Term: enter the remaining term of the existing loan. For example, if the seller originally had a 30-year mortgage and has been paying it off for 10 years, enter 20 in this field.

When you enter the existing loan information as described above, our software will correctly calculate your loan payments and the remaining balance going forward.

Note: The above screenshots were taken from our online app, but the same features can be found in our iOS and Android apps as well.

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