206: The Hidden Risks of “Subject To” Real Estate w/Eddie Speed

On The Market

For the past few years, “subject to” real estate has been all the rage. Everyone is talking about how they scored a great real estate deal by taking over a seller’s rock-bottom interest rate mortgage payment. You see it all over social media, “I got this house for zero dollars down with a three percent mortgage rate!” And while this may seem too good to be true, the practice of subject to real estate isn’t illegal, but some of its huge risks could ruin an inexperienced real estate investor.

So, who do we have on to talk about subject to? Eddie Speed! Eddie is a creative financing master who’s been in the real estate note investing business for over forty years. Eddie has been around the block more than most and has seen the good and bad sides of subject to real estate. It’s become alarming to Eddie how many inexperienced investors are using this strategy without knowing the risks, putting their wealth and, more importantly, sellers in danger by being far too cavalier about the massive downsides of getting this real estate strategy wrong.

Eddie walks through exactly how subject to works, the one clause that could blow up your entire deal, what will trigger it, the difference between subject to and assumable loans, who should be using subject to, and who DEFINITELY shouldn’t. Even if you’ve done a subject to deal before, you’d better stick around for this one, because you may have gotten it wrong.

In This Episode We Cover:

Subject to explained and whether this “no money down” strategy is worth the risk

Subject to real estate vs. assumable mortgages and why these are NOT the same strategy

The “due on sale” clause that could ruin your entire deal (and what triggers it)

A workaround to the “due on sale” clause that most investors get WRONG

Who should be investing in subject to real estate (and why it’s probably NOT you)

Often overlooked state laws that could put you in hot water if you’ve done a subject to deal

And So Much More!

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