Articles provided by RE-Sterling.com

If you're using your money and/or your credit by real estate, you might want to reconsider. Ultimately it's a personal decision. There is no absolute wrong or right but there is a right answer for YOU. But unless you have more money than the US Treasury, you're eventually going to reach a point where you can't buy any more real estate.

At some point in time, lenders will stop loaning you money to buy real estate if you're using your credit to take out mortage after mortgage as you buy more and more houses. How soon lenders start refusing to loan you more money could be after a few houses or maybe it won't be until you've bought 20 or more but lenders will not loan you an infinite amount of money.

Taking out a bunch of loans also puts your credit at risk. What happens if you can't make the payments on just one of those loans? The worst case scenario plays out more often than you might think with tenants disappearing and leaving the house in a state of disrepair. Too many investors have learned this lesson from the school of hard knocks. Don't be the next one.

A much better way is to buy properties "subject to". It may take a little more effort to find motivated sellers who will agree to let you take over their payments while the mortgage stays in their name but they are plenty of them out there. All you have to do is find them. Using other people's money (OPM) unleashes the power of leverage and removes the limits lenders place on you.

Buying houses "subject to" has many advantages but perhaps the best reason is that you'll never even have to speak to a loan officer or have your credit checked. Learning to use creative real estate financing techniques has its advantages. Ultimately the financing methods you chose to use are a decision for each individual investor to make but if you want to learn how to buy real estate "subject to" along with many other creative techniques to find motivated sellers, make offers that get accepted, and sell the house quickly you'll be interested in my Real Estate Investing Online Home Study Course.