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 are using your credit to get mortgages in your own name to buy houses, you're eventually going to come to a point where the lender will look at your credit report and refuse to give you another loan. Whether that's after buying 3 houses, 10 houses, or 20 houses depends on other factors but it will happen eventually.

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.