Back in 2017, I got a call from a couple in Point Loma, San Diego who were looking to sell their townhouse and move to Arizona.
At first glance, it didn’t seem like a property that made sense for a cash purchase. But as I got to know their situation, it became clear there was another solution — one that would help them achieve their goal and still make sense as an investment.
💡 The Situation
The couple wanted to move closer to family in Arizona and buy a mobile home there. The challenge?
They had some equity, but not enough to sell, pay off their mortgage, and have enough left over to buy their new home if they sold through a traditional sale or for cash.
That’s when I suggested something a little different — something we had been doing long before it became popular:
Purchasing the property subject to the existing mortgage.
🧾 What “Subject To” Really Means
Buying a home subject to means that I take ownership of the property, but the seller’s existing loan stays in place. I make the payments directly, and the mortgage remains in the seller’s name until it’s paid off or refinanced.
It’s a creative financing strategy that’s gotten a lot of attention lately — but here’s the truth: It’s not for everyone.
It only works when there’s trust, transparency, and mutual benefit. Because at the end of the day, that loan is still tied to the seller’s name.
They have to believe — completely — that you’ll make every payment on time.
🤝 Building a Business Relationship, Not Just a Transaction
For this Point Loma couple, it made perfect sense.
They got the cash they needed upfront — their equity — which allowed them to buy their new place in Arizona. And because I took over their existing mortgage, I was able to offer them more money overall than a typical cash deal would have allowed.
My strategy shifted from a quick flip to a long-term hold, something I actually prefer when the numbers make sense.
And from there, the relationship began.
For eight years, I made the payments on their existing mortgage, rented out the property, and kept in touch whenever needed. They trusted me — and that trust was earned through clear communication, follow-through, and doing exactly what I said I would do.
🏡 Before & After
Before: When I first bought the property — a dated but solid townhouse in Point Loma.
After:Once the updates were complete — refreshed, stabilized, and ready to serve as a long-term rental.
It wasn’t just a property rehab. It was the foundation of an eight-year relationship built on integrity and shared benefit.
🔑 The Lesson
A subject-to deal isn’t just a financing strategy. It’s a partnership based on communication and trust.
That’s what The Perfect Cash Offer is all about — not just price, but people.
✅ The sellers got what they needed to start their new chapter in Arizona. ✅ I gained a property that built equity and cash flow over time. ✅ And both sides walked away with confidence — knowing the other would keep their word.
💬 The Takeaway
Real estate done right is never just about numbers. It’s about people, promises, and doing what you say you’re going to do.
That’s how you create win-win solutions. That’s how you build The Perfect Cash Offer.
🏠 1-800-BUY-HOUSES The Standard for a Cash Offer on Your Home Building trust. Doing the research. Closing with integrity.
✍️ About the Author
Paul Baird is the co-founder of 1-800-BUY-HOUSES, a company redefining what it means to make a cash offer through transparency, education, and trust. Paul has bought and sold over $500 million in real estate and helped hundreds of homeowners sell their properties directly for cash.
He co-created The Perfect Cash Offer framework to help homeowners and agents understand what a real cash offer looks like — and to set a new standard for integrity in the industry.
Follow Paul for more real stories and lessons from behind The Perfect Cash Offer.
