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subject to is a creative financing strategy where you as an investor buy a property by leveraging the sellers existing financing now let me quickly explain with traditional real estate when a seller has an existing loan on his home and he decides to sell the existing loan must get paid off in full and the seller gets to keep whatever the difference is that difference is the sellers equity however using a creative financing strategy called subject 2 instead of paying off the sellers existing loan you the investor take over the loan and then pay the seller that difference