"Subject to" real estate has been exploding in popularity. When mortgage rates began to rise, subject to (often called sub to) came in as the hero to save the day. This real estate investing strategy offered investors the chance to take over low-interest-rate loans from homeowners who wanted to sell their properties. And, with often a minimal down payment required, new and experienced investors lined up to give this fast-scaling strategy a try. Without even knowing it, Tanner Litchfield did the same.After being brought a home run, three-percent mortgage rate deal, Tanner knew he had to act quickly to secure what would be a massive passive income play. He put down a six-figure down payment to secure it, with another seventy thousand dollars in renovation costs. Things were rolling smoothly until…they weren’t. Tanner lost every penny he put into this property and the property itself while another investor walked away with it in hand. How did this happen, and how do YOU avoid a six-figure creative financing mistake?In today’s episode, Tanner walks through every difficult detail of this deal gone wrong. He shares the red flags he should have seen in the beginning and the one thing that could have saved him from this deadly deal. If you’re interested in seller financing, subject to, or any other type of creative financing, you MUST listen to this episode, or you could be hit with a six-figure loss, too.In This Episode We Cover:Subject to real estate explained and why so many investors are flocking to this strategyThe “due on sale" clause which can easily lose you an entire property if calledWhy you MUST understand the zoning and rules for your rental property BEFORE you buy itThe “gray area” of creative financing that is putting new and veteran investors at riskWhy having a solid network in your investing area can stop you from getting burned And So Much More!Links from the ShowFind an AgentFind a LenderBiggerPockets Youtube ChannelBiggerPockets ForumsBiggerPockets Pro MembershipBiggerPockets BookstoreBiggerPockets BootcampsBiggerPockets PodcastBiggerPockets MerchProperty Manager FinderJoin BiggerPockets for FREELearn About Real Estate, The Housing Market, and Money Management with The BiggerPockets PodcastsGet More Deals Done with The BiggerPockets Investing ToolsFind a BiggerPockets Real Estate Meetup in Your AreaExpand Your Investing Knowledge With the BiggerPockets BooksBe a Guest on the BiggerPockets PodcastAsk David Your Real Estate Investing QuestionDave's BiggerPockets ProfileDave's InstagramHenry's BiggerPockets ProfileHenry's InstagramHear Dave and Henry On the “On the Market” PodcastWatch Dave on the “On The Market” YouTube ChannelThe Hidden Risks of “Subject To” Real Estate w/Eddie SpeedCreative Financing: How To Use It In Real EstateConnect with Tanner:Tanner's BiggerPockets Profile

Intro

Ditching Dentistry to Invest

Finding Creative Financing

A Perfect Deal on Paper

Scoring a 3% Interest Rate?

Things Go Really Wrong

A Massive "Gray Area"

A Chance of Recovering?