"Subject To" Financing: Risks and Benefits | Real Life Planning Podcast Episode 80
Real Estate CoachingIn Episode 80 of the Real Life Planning Podcast, Cynthia Meyer, CFP®, CFA®, ChFC® goes deep into the creative strategy of "subject to" financing, where an investor takes over payments on a seller’s existing mortgage without assuming the loan. Cynthia breaks down how it works, who it's for (hint: not beginners), and the legal and financial risks every investor must understand before pursuing this advanced tactic.
" The “subject to” financing strategy can be a powerful strategy for a certain experienced slice of real estate investors, but it can also be dangerous depending on the execution.” - Cynthia Meyer
This week on Real Life Planning Podcast:
| 💡 | What does “subject to” financing actually mean, and how does it work in real life? [00:01:55] |
| 💡 | Who would sell their home this way—and why? [00:02:44] |
| 💡 | What are the major benefits for experienced investors? [00:06:03] |
| 💡 | What are the risks of “subject to” and what could go wrong? [00:07:40] |
| 💡 | What best practices can reduce risk in a “subject to” transaction? [00:14:06] |
Takeaway Quotes:
" This is really something that requires knowledge, strong systems, good legal support, lots and lots of cash reserves, and really good systems and processes to make this work." - Cynthia Meyer
" It's a real estate business strategy. We've been seeing more about this as interest rates have gone up." - Cynthia MeyerConnect with Real Life Planning:
About the Real Life Planning Podcast
Hosts Cynthia Meyer and Vekevia Tillman-Jones explore practical steps for real estate investors to build financial freedom and make working for someone else optional.
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