The Top 10 Subject-To Mistakes and How to Avoid Them

Seller Financing| Subject-To| Creative Finance| Deal Structures

April 16, 2025•2 min read

Unlock the Secrets of Subject-To Investing: Avoid These Top 10 Mistakes!

Welcome to Sub2Empire’s podcast, your go-to resource for mastering the art of creative financing and subject-to investing! Are you ready to take your real estate investment journey to the next level?

In this episode, we’ll uncover the Top 10 Mistakes New Investors Make When Buying Subject-To properties and how to avoid them. Avoiding these pitfalls can mean the difference between a profitable deal and a financial headache! Whether you’re a seasoned investor or just starting, this content is packed with actionable advice to help you structure successful subject-to deals and build long-term wealth.

What Is Subject-To Investing? Subject-to investing is a powerful creative financing strategy where you take ownership of a property “subject to” the existing mortgage staying in the seller’s name. This means you take over the payments on the seller’s loan while benefiting from ownership of the property. It’s an incredible way to build a real estate portfolio with little to no money down, but it requires proper education and careful execution to ensure your success.

Avoid These 10 Costly Mistakes! In the video, we’ll go over the following common mistakes:

1. Failing to Verify the Underlying Loan Terms

2. Ignoring the Due-on-Sale Clause

3. Skipping a Title Search

4. Underestimating Closing Costs and Legal Fees

5. Poor Communication with the Seller

6. Neglecting Proper Paperwork

7. Taking on Properties Without a Cash Flow Analysis

8. Not Maintaining Reserve Funds

9. Overpaying for the Property

10. Failing to Educate Yourself

These are just the highlights! Make sure to watch the full episode for an in-depth explanation of each mistake and practical steps to avoid them. Take Your Education to the Next Level!

💥 Looking to master subject-to deals and other creative finance strategies?

Visit Sub2Empire’s website for more resources, and check out the Sub2Empire Creative Finance Academy where you can PARTNER with Sub2Empire and get in-depth training on creative real estate techniques. Learn from the pros and elevate your investing skills today! Be sure to like, subscribe, and hit the notification bell to stay updated on our latest episodes! Have questions or want to share your own experiences with subject-to deals? Drop them in the comments below, and Jeff and Ken will tackle them in future podcasts.

Visit Sub2Empire’s Homepage for more creative finance resources: https://sub2empire.com

Enroll in the Sub2Empire Creative Finance Academy to boost your skills in creative real estate financing: https://sub2empire.com/cfa

Follow Sub2Empire on Social Media:

Facebook: @Sub2Empire

Instagram: @Sub2Empire

X (Twitter): @Sub2Empire

Ken Rossics

Ken is a highly successful real estate investor with nearly 25 years of experience and millions of dollars in transactions including buy and hold properties, renovations, lease options, seller financing, note creation/investing, tax sale investing, and even international real estate ownership. Ken has spent countless hours obtaining advanced and strategic knowledge in numerous areas of real estate investing. His knowledge and experience in real estate propelled him to early retirement at the age of 45, but he didn't rest on his laurels. Instead, Ken redirected his efforts and has devoted his life to helping the next generation of investors become better every day. Ken is also a self-proclaimed serial entrepreneur with numerous operating businesses in the real estate space as well as his other life-long passions of traveling and health and wellness where he is also a published author.

Back to Blog