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You might want to rethink how you're buying real estate if you currently use your own money and/or credit. At the end of the day, it's a personal decision. When it comes to real estate investing, it's nobody's place to insist one way is better than another. But if you are using your own money and credit, there will likely come a day when you don't have any more money or credit.

If you're using your credit to take out mortgages to buy real estate, all these loans will be on your credit report and eventually lenders will refuse to loan you more money. It could happen after buying a few real estate investments or it could happen after buying dozens of houses but that day will eventually arrive.

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.

Smart investors favor the practice of buying house "subject to" the existing financing. You'd be wrong if you thought there weren't plenty of people near where you live who would be willing to have you solve their problem buy taking over the mortgage payments on their loans. Finding them isn't all that difficult either. "Subject to" financing allows you to bypass the challenges of working with lenders and use the power of leverage using other people's money (OPM) to build your real estate empire.

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.