LOGO Pitts Enterprises Inc
30–225-k Financing Real Estate Bootstraps! Tutorial Mentorship.  

   Click Here:    30 – 225K Program: Designed For Partners: 

Fix & Flip Buy & Hold WELCOME TO BUSINESS EYE / 30 – 225-k Financing Services! Real Estate Funding / Bootstraps For Business!
Fix & Flip Buy & Hold
WELCOME TO BUSINESS EYE / 30 – 225-k Financing Services! Real Estate Funding / Bootstraps For Business!

JVM GALLERY https://blakeconsultantsusa.wordpress.com/our-house/

Learn More! Live Better! Think and Grow Rich! The “Old” Way The “New” Way!

Single Family Brick Single Family Hom
Single Family Brick Home! Total Renovation! 
West 107th st Frame Two Unit!
West 107th St Frame Two Unit! Total Renovation!  
Single Family Brick Single Family Hom
Single Family Brick 30-225K Program Project!
Chicago Brick Bungalow
Chicago Brick Bungalow Total Renovation! 
South Halsted Property Brick Bungalow
Halsted Brick Bungalow! 30-225K Project!  
1600 West 86th st Chicagoland
1600 West 86th St 30-225K Total Renovation 
71st street Project Chicagoland
71st Street Project Full Renovation! 30-225k

94th street Project Chicagoland Brick Bungalow
94th street Project Chicagoland Brick Bungalow! 
Rehabbed Two Unit! Chicagoland
Wells, Street Renovation! Two Unit! Chicago!  
South Holland PROPERTY North RIVERSIDE Selling The Note!
South Holland North RIVERSIDE 30-225K!
303 Boston St. Selling The Note!
Boston St. 30-225K Project! Total Renovation
Boston St Project House For Sell!
Boston St 30-225K Project! Full Renovation!  


30 -225-K Program – Single – Family -Home! Change Your Mindset! Begin Your Journey! Become A Partner! Opportunities Are Coming! The Strategy Of Buy / Hold!    I WAS POINTING ACROSS AND I SHOULD HAVE BEEN POINTING UP…..HO WELL HAVE FUN!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!  http://www.privatemoneyexchange.com/lp/aff-page/vpitts6385/

Funding (YES)
Funding (YES)

30 -225-K Program – Single – Family -Home! Change Your Mindset! Begin Your Journey! Become A Partner! Opportunities Are Coming! The Strategy Of Buy / Hold!

   Click Here:   Enroll Now! 30 – 225-K Program: 

Click Here: (WE) ARE THE BANK: 

BECOME THE BANK!  The Banking Industry is still having problems!  YOU BE THE JUDGE!  Click Below!  



Imagine This is a 30-225-K Home I use for all my Staging and Videos  





We Benefit the Cash Buyers All Over The World!
We Benefit the 30-225-K Program!

First of all, this site was created to better inform you of the importance of PARTICIPATING in the Enroll Now: 30-225-K program.  

*Top Ten Growing Cook County Cities: 1-25

Click And See:  26-100

Strength Of local Markets Cook County:


 We Create the Solutions! Enroll Here: 


I offer my company Credibility!   Click Here! “Credibility Kit”

*Company Overview
*Bio On Principles of Company
*Portfolio of Properties
*Testimonial Letters

Seller Financing
Seller Financing

CLICK ON THE LINK: GET YOUR SHARE OF THE $150,000.00 Line Of Credit! 

30-225-K Buy & Hold or Fix and Flip money

SEED CAPITAL:  $150,000.00  

This is a phenomenal Business”. I want to enlighten you on the principles OF THE TOP TEN EMERGING MARKETS IN COOK COUNTY and the expertise we have in the Chicagoland Real Estate marketplace.



Sauk Village Homes for sale
Sauk Village Homes for sale

Homes in Sauk Village:  This is why it’s so important to understand Emerging Market!  It’s the Future! 30-225-K homes with the potential of 718% Return.   That’s right I have the system!



Pitts Chicago
Chicago Hispanics! Growing Population!

CHICAGO — Hispanics have become Illinois’ largest minority group, 2010 Census data released Tuesday show, and the city of Chicago lost almost 7% of its residents over the past decade.




Enroll Today: 30 – 225K Program: 

30 – 225-K Program – Single – Family -Home! Change Your Mindset! Begin Your Journey! Become A New Homeowner!  

30-225K Program
30-225K Program


Homes in Dolton Illinois: Another Emerging Market! I know what you are thinking: We looked again and see what others don’t see:




35 W. 107th st
W. 107th st

Two Unit Purchased In Chicago Ill for $5,000.00 Sold On Contract Undisclosed Amount!  Same Month!

You do the Math!  WE ARE THE BANK




West 107th St Chicago Il, 60628 Fully Renovated
West 107th St Chicago Il, 60628 Fully Renovated! Another 30-225k Deal

Homes in Chicago Illinois! Sometimes you land in a city and even though you are there for a totally different purpose, something just feels right. We own three houses there and the 30 to the 225-K program is alive and functioning, and very profitable.


(1). The introductory:  Web-page Charity!  Will provide you the prospective investor information to review.

(2). Investment Highlights, steps that are involved with this transaction!

55th street Real Estate Project JVM Remodeling 003

55th street Real Estate Project JVM Remodeling 004 55th street Real Estate Project JVM Remodeling 005 55th street Real Estate Project JVM Remodeling 006 55th street Real Estate Project JVM Remodeling 007 71st street Project Chicagoland Area 001 71st street Project Chicagoland Area 002 71st street Project Chicagoland Area 003 71st street Project Chicagoland Area 004

(3). Real Investment Examples: Actual real properties that are now secured, sold to a family. This Company has a system of working backward, we find the buyers first! Then we find the house! We purchased the house from the Bank Foreclosures, FSBO, REO’s Short Sales! The property is then sold on a 12 – 24-month lease-With-Option to buy agreement! New Owner renovates the property WE FIX THERE CREDIT!  

Enroll Here: 30 – 225-K Program: 

(1). Unique Ideas:  

(2). Our Strategy:

Let's Be Serious
Let’s Be Serious

Pitts Enterprises Inception: 2007:  Explaining The 30 – 225-k Program: 

During the housing collapse of 2008, Pitts Enterprises recognized the value of investing in distressed real estate within the Cook County area. We currently manage many homes!  That asset is primarily residential REO properties located in low-income communities throughout Cook County. Our strategy is to maximize the assets by investing in as many Off-Market House’s  as possible during this period! Our strategy is simple. Secure low purchase prices and then provide financing or resell each property quickly for the.  (30 to the 225-k program).

We Work Backwards! How it Works:  Explaining The 30 – 225-k Program:   


We Work Backwards! How it Works: Explaining The 30 -225k Program


Let's Close Let's Close let's Close!
Let’s Close Let’s Close let’s Close!


No loan Required for you
No loan required for your buyer
No cash needed from you!
No problem finding properties
No problem finding buyers
No wondering how to get started
Not fear factor
No learning curve


Mr. Contractor This is a No Brain-er
My Follow Student!  This is a No Brainer

No Bank credit application
No credit check
No appraisal required
No financing delays
No limit on where you can buy no competition
No worries
Close you first deal in 30 days or less

Project Under Contract
Project Under Contract

You control the property
You control the buyer
You control the financing
You control the closing

(1). No ( 1 )  You need Prospects!

(2). Someone to Present too!

(3). Close!

Example Deal

$5,000 Purchase Price

$30,000 Sales Price

$5,000 Down Payment

$25,000 Balance Financed By Pitts Enterprises Inc.

10 Year Term (120) Months

11% Interest Rate

$399.48 Monthly payment to (You)

We have a “slogan in the office” learn more-love God-live better-think in grow rich-watch your future grow.
We have a “slogan in the office” learn more-love God-live better-think in grow rich-watch your future grow.

Total of payment $47,937.60
$47,937.60 total payments received ($399.48 X 120

Your Investment: $5,000.00 (When You purchased The House)

Profit $42,937.60 Your investment was $5,000.00

Down Payment From Client $5,000.00

10 Year Profit $43,937.60

Over a 10 year period! Imagine a 718% And Higher return!

Sell the note for 20% Yield and still make OVER 300% RETURN THAT‘S $16,671.76 ON A $5,000.00 investment.

Properties we acquired are not bulk packages, but individual purchase’s via Pitts Enterprises Cook County network of qualified lenders, loan servicing companies, and government agencies. Following an acquisition, we have buyers waiting to purchase these properties. We then execute resell strategies in the wholesale and retail markets. Our hold time is Between the 2 to 10 years. We sell the asset on a land contract! The notes secured by deeds of trust or mortgages. Mortgages/Notes are sold.  Many are sold to a private investor in the secondary markets. The current buyers remain in the property, they own the property, We own the note.  Pitts Enterprises strives to generate an all-cash price on each property at 65% of its face value. We anticipate liquidating all properties and mortgages and distributing cash and other assets to investors within two to ten year period.

The Quintessential Person. Is That You?
That Quintessential Person. Is That You?

Benefits: Of Pitts, Enterprises Inc. Explaining The 30 – 225k Program: 

1.  Steady income in combination with sophisticated growth potential.
2. Strong, Cook County network of industry professionals to move properties Quickly and  Profitably.
3. One Participate by the property.
4. Professional, account management.
5. Our involvement in this process is simple, help low-income families own their own homes, often for less than it would cost them to rent.



Listen to the fireman
Listen to the fireman

A fireman once said! That it’s not safe to enter a burning building without first knowing where all the exits are. That seems like common sense attitude to have.

The same thinking applies to Pitts Enterprises Inc real estate business. Before We buy any property, We have a buyer waiting to buy from us. It’s called working backward. No stress, in selling the property. We First decide on the exit strategy. Before we buy the property. Having the funds and a buyer makes this business stress free, and very profitable.


In other words, when you know what you will do with the property, it will help you determine the offer. You bring to the table the Funding source. We do all the Due-diligence, property Research and finding the Buyer!

71st street Project Chicagoland Area 002
71st Street Project Chicagoland

(1). (Buy & Hold): (30-225K programThis is our best strategy! Instead of selling the renovated property, we at Pitts Enterprises chooses to create the 30-225-k program thereby giving the new family the ability to purchase the home. An option to buy, which means they have a contract for deed! or Lease With Option To Buy!  Both are great strategies. The Client renovates the property themselves, they pay the taxes and Insurance, they pay all utility bills and take on all respond ability of the residence.

They pay the closing cost and submit a down payment. We collect a Note until payment in full is satisfied. Benefit: Monthly cash flow. This is a popular real estate exit strategy for those looking to build up equity in an asset.  Another benefit!  Buy & Hold offers much much more, therefore each Investor should “play Monopoly” with their portfolios. The whole strategy of a Monopoly game is to increase your property holdings from single houses to multi-family and hotels to generate more rent. Buy & Hold Investors should consider this as a long-term strategy also. Pursuing this strategy will usually require an investor to Flip their portfolio, often through a 1031 Exchange to defer capital gain taxes. The idea of 1031 Exchange is a down the road strategy. What properties should Flippers consider a Buy & Hold strategy are all located in the Cook County Area.




52 st Street project Chicagoland 002
52 st Street project Chicagoland 

(2). (Seller Finance): As its name suggests, the seller finance strategy involves a creative technique that permits the owner to sell the property to a buyer. Essentially, the owner Pitts Enterprises Inc. finances the deal and acts as a bank. However, monthly payments are awarded to the owner. The seller maintains the mortgage loan to cover the sales price. 

A). There’s no Doubt that creating a Note for a client is very profitable. (There Is an Upside and a Downside). Highest interest paid is the private lenders. There is no doubt that a seller can insist on and receive the highest price when offering flexible owner financing terms. In many cases, the seller can receive more than the fair market value of the property by offering these “soft” terms. People are always willing to pay a premium for non-qualifying financing.

B). Cash. Nearly every seller says he wants all cash, but few need it. What the typical seller wants is the most net cash from the deal. Often, the seller has to pay closing costs, title insurance, broker fees, and the balance of the existing financing.


C). In addition, there may be capital gains tax due to Uncle Sam. In many cases, the sale of a property by an installment sale (particularly a “wraparound”) will net the seller more future yield than any source from which the cash proceeds were reinvested.

D). Fast Closing. Nothing holds up a sale more than new lender financing. In some areas of the country, it can take months for a buyer to qualify and close a new loan to purchase your property. Since most standard real estate contracts contain a financing contingency, you may end up back at square one if your buyer does not qualify.

E). Furthermore, if your house is not particularly nice or unique, it may take you some time to even find an interested buyer. Since you are competing with all of the other houses for sale, you may need to spend thousands of dollars in paint, new carpet and landscaping just getting the house ready for the market.

I Came To This Country Not To RENT But To OWN!
I Came To This Country Not To RENT But To OWN!

F). There are very few “assumable” loans and few sellers are offering “soft terms.” Thus, owner financing makes your house unique. Furthermore, an owner-financed transaction can be consummated in a matter of days, since there is no appraisal, underwriting, survey, or other nonsense involved. In many cases, you will be able to sell the property yourself, saving thousands in real estate broker fees.

G). Tax Savings. On an installment sale, you only pay gains to the extent you receive payments each year. This can be particularly advantageous if you have owned the property for several years. Furthermore, you can combine the installment sale with an I.R.C. 1031 Tax-Deferred Exchange for further savings. As you can see, owner financing provides many advantages to the seller. Let us now turn to the advantages for the buyer. Advantages of owner financing for the buyer. Despite the elevated purchase price and higher interest rate, there are many benefits to a buyer who engages in an installment sale transaction.

H). Easy Qualification. The buyer, in many cases, prefers an installment sale to conventional financing because it does not require traditional bank income and credit approval. The buyer may have poor credit because of a divorce or recent bankruptcy. He may be self-employed and cannot prove income. He may be new to his job and cannot meet strict lender guidelines. Even if he could qualify for a loan, the rate will be astronomical if he has poor credit. Furthermore, few conventional lenders offer fixed interest rate loans to people with a poor credit rating.

Contract Foe Deed! Second Chance For my Family!
Contract For Deed! Second Chance For my Family!

I). As you can see, there are dozens of reasons why a buyer cannot qualify for a conventional bank loan. Owner financing becomes the perfect solution for him. Credit Rating. An installment sale may give the buyer a chance to improve his credit rating by owning a home and making payments timely. No Loan Costs. One of the biggest benefits for the buyer is not having to pay the costs associated with conventional loans. Points, origination fees, underwriting charges, appraisal, credit reports, title insurance and the plethora of other “junk” fees charged by conventional lenders can amount to thousands of dollars at closing. The buyer is free from these with an owner-financed installment sale.

J). Fast Closing. A buyer can close and move into a property within a few days since there is no third party lender holding up the transaction.




Great Choice
Only If You Know What You’re Doing! 
Rehabbing Great Choice
Rehabbing 101 Great Choice

(3). (Rehabbing): There are two ways to rehab: Do it yourself or hire someone. There are pros and cons to both.  If you can do it, you save money on labor. The downside is that if you don’t fix according to code, you will have major problems. If you have a day job that only leaves you nights and weekends. It might drag on for months.  There is a hybrid combination of both rehabbing and wholesaling.  The rehabber? I want you to know that I have been an active real estate investor for more than 25 plus years. I started by way back with Carlton Sheets in 1977. Visiting and buying Creative Real Estate books and tapes. It has been crucial to my success. I’ve done allot of wholesaling, short sales, pre-construction sales, and pre-foreclosures. I and my partners have done allot of deals. Back in the year 2006 we simultaneously were doing two to three deals per month. So you can imagine how busy we were.

We hope to do approximately ten deals this year. At least, that is our target. It is important to remember that when I started, I knew absolutely nothing, just like you. If I can do it, so can you.

Gut Renovation
Gut Renovation

1. Estimating rehab costs:

The biggest question I got was how to estimate the cost of repairs so you can figure out what to sell the property for. When I do a walk through, I look at four things: roof, structure, plumbing and electrical. These are the biggest expenses AND all require permits.

Roofs Done Correct!
Roofs Done Correct!

2. Roof: Look at the fascia and soffit for signs of wood root or termite damage. Look at the top of the roof for loose shingles. Look at the ceilings for water stains or discolorations or holes.

3. Structure: I walk around the property looking for cracks in the foundation. If you’ve got a structural problem, it’s expensive ($7,500 – $30,000) to repair and could kill your deal.



4. Plumbing: Look under the sinks in the kitchen and bathrooms. Look at the floor to see if there are any uneven spots and shower stalls for leaks. Most of all–look outside the property for any large trees with roots that are growing under the house. That could cause major plumbing headaches.



The Right People For The Right Job!
The Right People For The Right Job!

5. Electrical: Fuse box or breakers? How long since the electrical was updated? Check the air conditioning unit. I always get an electrician to check out the house if I am not sure.

6. Also, tile or carpet? Depending on the area and demographics, folks prefer one or the other. Best to know which one. Assume you will have to paint inside and out and do some minor landscaping. Don’t forget to take the pulse of the neighborhood. Pride of ownership or run down properties? Close to public transportation, shopping, and schools?

If you break it down like this, after a while, you will know what things costs, and you can estimate repairs before rehabbing or wholesaling it to another investor.



Wholesaling a HOUSE
Wholesaling a HOUSE

4). (Wholesaling): WHAT DOES THIS LOOK LIKE: Simply put, a wholesale deal will allow you to earn a quick profit.  Find a deal with equity and assign the contract! $5,000-$10,000 Wholesale fees! Broker the deal to the end BUYER with Pitts Capital Funding attached = Broker Fee to you! AND GET PAID! Now imagine if you supplied that (End Buyer) (Investor) with the private funding to secure the deal for you.  Not only do you have a tidy little wholesale fee, you also have a private money brokering fee on top of it! (and you never owned the property) Not only that, you just provided some serious value to your investor. (YOU SUPPLIED THE DEAL AND THE


MONEY) And you get paid on the deal! You’re now His / Her best friend!
You’re the middleman between a seller and an end buyer. Essentially, You the Buer will find and quickly sell the property for a respectable profit margin. There are two methods in which an investor can wholesale again or Renovate the property for a retail buyer.  Again simply sell or “assign” your purchase contract to an end buyer, or they actually close on the property and immediately produce a “double close.”  

Step one: Find a property

If you are advertising correctly, your phone will ring off the hook. Find a property with sufficient equity and get busy. Let’s use the example of a property worth $60,000 that you negotiate down to a buying price of $25,000. You fill out your sales contract with the homeowner as the seller and you as the buyer.

We like to use contracts from the Board of Realtors. They are easy to use, and homeowners are familiar with them. If not, most office supply stores sell real estate contracts.

One of the first lines on the sales contract is a place for the buyers’ name. Put your name and the words “and/or assigns” after it. This will allow you to assign the contract to the rehabber.

Wholesaling For Profit
Wholesaling For Profit

To make the contract binding, you have to leave a deposit with the homeowner at the time of signing. We typically leave a $10 deposit. This way, if we are unable to wholesale the property, we are not out a lot of money.

$10! Who would take that? Everyone! When we first started asking homeowners to take a $10 deposit, we thought we’d get kicked out of the house. To our surprise, no one gave us any grief.

If you say it like this: “We typically give a $10 deposit and close in 45 days. That won’t be a problem, will it?” They always say, “Okay.” The only reason a homeowner won’t take $10 is that’s the way you presented it.  Speak with confidence.

Step two: Start building your buyers list.  MORE TO COME ON THIS SUBJECT:





Lease with a option to buy
Lease with a option to buy

(5). (Lease Option): A lease option, otherwise known as rent-to-own, allows the owner to rent the property to a tenant, but with the option to purchase it at a later date. Should the option be exercised!  40 to 60% of the monthly payments are put towards the purchase of the home.  A lease option (more formally Lease With the Option to Purchase) is a type of contract used in both residential and commercial real estate. In a leaseoption, a property owner and tenant agree that, at the end of a specified rental period for a given property, the renter has the option of purchasing the property.  This basically means you are leasing or renting a property with an option to buy it at a future date.

The future price of the property should be fixed at the time the leaseoption is signed. Usually, there is an up-front payment of some amount to purchase the option. The amount can vary.  Written or implied contract by which an owner (the lessor) of a specific asset (such as a parcel of land, building, equipment, or machinery) grants a second party (the lessee) the right to its exclusive possession and use for a specific period and under specified conditions, in return for specified periodic rental or …How much the monthly lease payment is, whether any of the lease payment is to be credited towards the purchase price reducing the purchase amount.

Often, the monthly lease payment is equal to or slightly above the fair market rent of the property. And while it’s fully negotiable, a credit in the range of 15%-25% is often offered. So, for example, if fair market rent for that unit would be $1,000, the seller might charge $1,100 with $200 of that being credited toward the purchase price.  An investor may acquire a distressed property with a lease option and make improvements to the property. Then the investor can sell the option to a buyer that is willing to pay the new market value for a profit. It is a common financing technique with investors. However, it is riskier than other methods the investor could use for controlling the property.

Then the investor can sell the option to a buyer that is willing to pay the new market value for a profit. It is a common financing technique with investors. However, it is riskier than other methods the investor could use for controlling the property.

The risks include the seller’s inability to transfer clear title when the investor seeks to exercise the option. In that case, the investor will have made improvements (sometimes substantial) to a property he/she doesn’t own and may not be able to acquire. If the investor is considering anything more than cosmetic enhancements, he/she might consider another method of control such as a land trust or acquiring the property using what’s called a “subject to” (or Sub 2) transaction.  

An Example of Option Lease! 

An example: Seller has a property that needs a considerable amount of work. Retail buyers typically cannot get financing or have too much to choose from to bother with physically distressed properties. Investor enters into a lease option agreement for let’s say $100,000, rehabs the property with about $20,000 and now the market value is approximately $135,000 the investor can sell the right to purchase for $35,000 and the new buyer would close with the original seller for $100,000

6.b Another example: A buyer buys the same property and uses his/her own money to rehab and may use rehab money towards the down payment. This allows the buyer to NOT have to come with a large down payment and rehab money.

Everything functions like a lease except there is a schedule when the buyer can decide to purchase the property.

Life Beyond Renting! Thank Pitts Enterprises Inc
Life Beyond Renting! Thanks To Pitts Enterprises Inc

The terms of the lease have to be negotiated also. These include items typically found in leases: maintenance, utilities, taxes, pets, how many occupants, insurance, ability to make modifications to the property, and so on. One note: Maintenance terms in a lease-option often differ from those in a standard lease. In a typical lease, often the owner is responsible for all repairs, except–sometimes–for a $50-$100 per incident deductible. Basically, the owner is responsible for virtually all repairs. In a lease-option, often a greater burden for repairs is shifted to the tenant-buyer.

During the term of the lease option, the tenant makes lease payments to the landlord for the use of the property with the terms mutually agreed. At the end of the contract, the tenant has the option to purchase the property outright. The tenant does so by going out and getting a mortgage.

Excess credit may also be applied towards the eventual purchase of the property, or towards the down payment for a mortgage (CAUTION, the buyer and seller can agree to whatever they want, but when the buyer goes to get permanent financing the bank has guidelines to what can be applied towards the down payment or the purchase. Typically banks only allow an amount that is above and beyond market rent to be considered for a down payment.) In that case, the lease-option works as an automatic savings plan for the tenant. This down payment is applied as part of the “option consideration fee”; in the arena of lease option purchasing, this is a fee charged for the right to purchase the property.


Note Buying
Note Buying

(6). (Sell The Note): Another exit strategy is selling the mortgage note. We have much direct note buyer of real estate notes. And they make selling a mortgage note easy. The company we use have their owned funds to purchase notes. The downside selling that note at a discount 65% to 80% of the remaining note that is left on the mortgage with the original note buyer. 


In the United States, a mortgage note (also known as a real estate lien note, borrower’s note) is a promissory note secured by a specified mortgage loan; it is a written promise to repay a specified sum of money plus interest at a specified rate and length of time to fulfill the promise.

Sell The Note
Sell The Note

Some people call it a private mortgage note, or deed of trust note in some states, is a promissory note that is created when a piece of real estate is seller financed, meaning the seller extends credit to the buyer for the difference between the sales price and the cash down payment. A note is a legal document that obligates the borrower to repay a loan at a stated interest rate during a specified period of time to the lender. The lender, in this case, is a private party that was willing to extend credit to their buyer in lieu of accepting all cash at closing. The note will state details such as the loan amount, interest rate, due dates, late charges and other loan terms. The party that holds the note has become the lender and is often referred to as the “note holder”.

A promissory note is a legal instrument (more particularly, a financial instrument), in which one party (the maker or issuer) promises in writing to pay a determinate sum of money to the other (the payee), either at a fixed or determinable future time or on demand of the payee, under specific terms.


Wondering if it’s possible to get a lump sum payment for the seller financed mortgage note you are carrying? Ultimately, you need to speak with a note buyer, which is an investor or bank that specializes in buying notes, to receive a fair market valuation of your note. McKinley has been buying performing real estate notes since 1989.  


Subject To Housing
Subject To Housing

(7). (Subject Two): Buying Real EstateSubject To” … “Subject To” is when you purchase the property subject to existing financing already in place, along with any other liens or encumbrances already attached. You do not formally assume the loan through the bank.  In a subject to, sometimes called a subject 2 deal, the existing financing that a homeowner has setup is taken over by an investor. This route is basically paying for the mortgage already in place through an agreement with a homeowner.  The terms of the note that were initially created with the lender stay the same. That includes the name the loan was purchased in. In other words, you are not assuming the loan.  A straight subject to cash-to-loan. The most common type of subject to is when the buyer pays in cash the difference between the purchase price and the seller’s existing loan balance. … Seller carrybacks, also known as seller or owner financing, are most commonly found in the form of a second mortgage.  

Let's Close Let's Close let's Close!
Subject Two Advantages!

Advantages of Buying Property by “Subject To”

  1. Banks are not needed.
  2. Low Closing Costs.
  3. Fast Closing Time.
  4. Credit not Needed.
  5. Use the owner’s interest rate (usually lower)
  6. Own the property with long term financing in place.
  7. Better Questions! Produce Better Answers.

Do Not Believe These Statements

  1. Buying “Subject To” is illegal
  2. You are not personally responsible for the loan
  3. You do not need any money for “subject to”
  4. The bank will foreclose if they find out
New-houses-Subject To!
Houses-Subject To!

There is nothing illegal or unethical about buying a property “subject to”. People who say this usually do not understand “subject to” fully. “Subject to” is on the HUD 1 statement on line 203. It says “existing loans taken subject to”

You are responsible for the timely payment of the loan you take over. The contract you make with the seller is enforceable in court. Even if it was not enforceable, you would not want to be unscrupulous in your dealings. Your first priority should be to the person you made the contract with concerning the loan, and any other parts of the contract.

Money is needed for a “subject to” deal. In some cases, the homeowner has quite a bit of equity, and you agree to pay him some with cash. In the case of a pre-foreclosure, you would need to catch up the loan first before taking it “subject to”. Other times the home may need repairs before you market it. Or, sometimes you may only need money for holding costs.

Should Have Hired a Mentor!
Let’s Talk About Foreclosure

About foreclosure, it is unlikely. As long as the payments are being made on time, the bank will most likely not foreclose. It is not fun, or profitable for a bank to foreclose. The average costs per property for a bank is $40,000. Plus, they have to hold in reserve, (not able to lend) 6 times the amount of the loan they foreclosed on. That is why lenders are short on mortgage money.

On the subject of worrying about if the bank finds out, I want to give you a personal example: I was making an automated payment on a loan, that I had taken the property “subject to”. It was the policy of this lending institution that sometimes they come on the automated system with a live person. This happened this time. Along with some other general questions, I was asked, “Are you doing a “subject to” to buy this property”? I caught my breath, and said,” Yes”. The reply was, “Okay, just keep making the payments”. What the bank is really interested in is getting paid.

Finding an owner who will sell by “subject to” is not as hard as it seems. They are some of the same distressed owners that you will find to be a motivated seller. Most cannot keep making the payments, and welcome the relief. Reasons vary, some need to move, some desire to rent, two homes, divorce, foreclosure, poor health, etc.

You use the same criteria and numbers in determining a good deal as with any other financing. Just because it is a “subject to” deal does not mean you can buy a bad deal. After you determine the numbers work, and the seller is interested…


1. Fill out with the seller the PURCHASE AND SALE AGREEMENT use the information the seller tells you. There should be a clause(s) for you to do due diligence.

2. Get an authorization to RELEASE INFORMATION TO A THIRD PARTY, use this authorization to talk to the seller’s lender, to order the payoff amount, and to find out if there are delinquent payments.

3. Now investigate for tax liens or other liens, market value, title search, recheck figures, determine repairs, and the cost of repairs. If you are qualified, do this yourself, but bring in the experts if you need. Most of us need expert opinions in some areas. This is DUE DILIGENCE.

4. Determine if your research gives the same information as the seller. a. continue preparing the deal b. amend the agreement c. reach a new agreement d. void the agreement because of information you have found.

5. WARRANTY DEED TO TRUSTEE puts the property into a trust. The trust owns the property and the beneficiaries own the Trust.

Even With the Prefect Markets! Fear Is Always Present!
Trust Agreement!

6. TRUST AGREEMENT this offers the benefits stated in #5 and gives some protection for the “subject to” transaction.

7. LETTER OF AGREEMENT AND ADDENDUM: reiterates the understanding reached between the Sellers and you and becomes a part of the file for the property.

8. MORTGAGE CHANGE LETTER: advises the mortgage company the property has been put into a trust, and the name of the trustee, and that the checks will be coming from the trustee.

9. INSURANCE CHANGE LETTER: The same purpose as the mortgage change letter, but to the insurance carrier/agent.

10. LIMITED POWER OF ATTORNEY: The document allows you or your company to sign on behalf of the seller in matters of insurance payoff requests escrow account.

11. SELLER DISCLOSURE LETTER: Confirms there were no extenuating circumstances surrounding the agreement to sell the property.

12. GET COPIES OF: or originals in some cases, mortgage coupon book, (or info for online payments), copies of original Deed & Mortgage, current Insurance Policy, Survey, & Title Insurance Policy, Appraisal, Alarm Codes, and Garage Door Openers, Keys

Here's the short list of properties under contract
Explain Everything!

When doing a “subject to” transaction, be genuine and explain the transaction thoroughly. You are solving their problem. Do not make any promises you can not keep. In doing “subject to” the biggest potential for risk is:

  • a) you make a bad deal
  • b) tenant/buyer problems (do not pay and/or (Trashes) The  property)
  • c) interference from sellers after the fact: if the seller shows potential for this type of problem, do not do the deal
  • d) due on sale: the risk is there, but slight



30 – 225K Program: 

   Click Here: Be The Bank (WE ARE THE BANK)

Any Question please call our office. 708-557-9667

In Conclusion
In Conclusion!

In conclusion: My promise to you! If you follow the system I’ve laid out for you. You will profit greatly.

How to Profit from the RED HOT Real Estate Market – Even if You Have Zero Experience!

Discover the Secrets to Successfully Flipping Houses!

How would you feel if I told you that you can have your own house flipping system that helps you find, flip, and profit from cheap properties?

I’m the house-flipping pro! I’ll be right there to walk you through the process, step-by-step.
How to Choose the Right Properties – Where to find inexpensive bank-owned houses, foreclosures, and bargain properties.

How to Get Financing to Fund Your Deals – Private investors will fund your deals.

Get access to funding – even if you have bad credit or no credit. Loans are secured by the property and some lending companies and private lenders/investors won’t even check your credit.

About Pitts Enterprises Inc.
Complete Your First Flip!

Complete Your First Flip in 60 Days or Less – New paint, new carpet, and some landscaping and you are on your way to completing your first flip. See how you can get this done with minimal mistakes, minimum time, and maximum profits.

Dozens of experts have expressed that now is the best time in history to be in real estate.

I’m sure you’ve seen one of those house flipping shows on TV right now, like A&E’s “Flip This House” or “Flipping Vegas”. You’ve probably thought to yourself, “Hey, this looks pretty easy. I can do this!”

But like most people, you simply never took the first step for one of two reasons:

(1) You didn’t know where to start.

(2) You were afraid of making a mistake, losing a ton of money, and embarrassing yourself.

I’ll be blunt: I’m here to show you where to start. I’m here to make sure you buy the right property. I’m here to help you avoid the HUGE mistakes that most beginners make.

Let's Be Clear!
Most Importantly!  Let’s Be Clear!

Most importantly, I’m here to hold your hand through your first deal 30-225K or Fix & Flip.

We help you choose the right property (Hint: this is BY FAR the most important step in any flip deal.)

You will be using my contractor’s so that you don’t get ripped off.

I help you decide what to fix up and what to ignore. You will maximize your net profit on each deal.

I have a proven system that works.

30 – 150-K Program – Single – Family -Home! Change Your Mindset! Begin Your Journey! Become A Student! Opportunities Are Coming! The Strategy Of Buy / Hold!


   You Could Be The Bank   ( CLICK: YOU COULD BE THE BANK) 

We Would Love To Hear From You!
We Would Love To Hear From You!

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