Subject-To Deal Workbook

Subject-to deals, where you take title and keep the seller's existing mortgage in place, can be the cheapest way into a property. They are also where investors get hurt: a loan balance that was estimated instead of pulled from the statement, a seller who did not really understand that the loan stays in their name, or a due-on-sale clause nobody read. Most free material covers the concept and stops before the part that protects you, which is the math and the paperwork.

This workbook ships as a zip with six editable files and a 4-page Start-Here PDF. The Excel calculator has a Deal Analyzer sheet with 15 formulas: enter ARV, loan balance, rate, PITI, repairs, cash to seller, arrears, closing costs, market rent, and your reserve and selling-cost percentages, and it returns total cash in, equity captured, loan-to-value, monthly and annual cash flow, resale margin, and cash-on-cash return, then runs a three-test decision rule (LTV under 80 percent, positive cash flow, equity above your minimum) into a PROCEED, REWORK TERMS, or PASS verdict, plus a stress test at ARV minus 10 percent and repairs plus 20 percent. A second sheet builds the seller's loan payoff schedule month by month for 360 months (1,445 formulas), linked to the analyzer inputs, with months-to-payoff and balance after 60 months. The Word files are a six-step seller conversation script that names the due-on-sale risk plainly, a 30-item due diligence checklist specific to sub-to (mortgage statement, payment history, loan type, title and lien searches, bankruptcy check, third-party servicing, insurance), three disclosure templates (Seller Acknowledgment, Authorization to Release Information, Limited Power of Attorney for loan matters), and a 12-question FAQ guide written in the seller's voice for the objections you will actually hear.

Start with the calculator: pull the real figures from the seller's mortgage statement, enter them in the yellow cells, and read the verdict before you talk numbers. Then open the conversation script and the FAQ guide before your seller meeting so the risk explanation comes out clean. Finish by working the 30-item checklist and adapting the three disclosures with your attorney. Every file is plain Word or Excel, so you can put your entity name and state-specific language in once and reuse the kit on the next deal.