At our last MAREI meeting—Meet the Expert Night—one topic kept coming up over and over again:
Subject To deals.
Not beginner questions.
More like:
“I’m already in one… and now this is happening…”
I was getting asked.
Other experts were getting asked.
We compared notes after.
Same pattern every time:
People understand the idea…
But not the structure.
If you want to actually understand how all this works and do Subject to Legally, Ethically and Profitably, we have a Master Class on Saturday April 25th. On Zoom – Replays & Handouts Included – Guaranteed.
What Investors Are Running Into Right Now
So what are some of the questions . . . that we see almost daily on some of the big forums hosted by some of the higher paid gurus out there. Questions that are being answered by other students, not by the high powered guru, we might add.
“The buyer stopped making payments… what can the seller do?”
👉 Answer: Not much—if protections weren’t set up at the beginning.
If there’s no structure in place to protect the seller (servicing, agreements, clear recourse),
they’re left exposed.
And once the deal is in motion, your options are limited.
Seller Protection Isn’t Optional
If you’re taking over someone’s loan, you need a system in place to protect them if you don’t perform.
That could include:
- Third-party loan servicing
- Backup authorization for communication with the lender
- Clear written agreements about what happens if payments stop
If none of that is in place…
👉 The seller is exposed
👉 And eventually, so are you
“I bought a property Subject To with arrears… I gave the seller money to catch it up… They didn't. now the lender is foreclosing and won’t talk to me. and the Seller Vanished”
👉 Answer: This is a setup mistake—not bad luck.
Two critical misses:
- You don’t hand money to a distressed seller—you control the payoff
- You must have authorization in place so the lender can legally talk to you
Without those, you’re operating blind—and paying for it.
You Don’t Hand Money to a Distressed Seller
If there are arrears…
You don’t give the seller money and hope they fix it.
👉 You control the payoff
👉 You verify it’s handled
👉 You document it
Otherwise, you end up paying… and still dealing with foreclosure.
If the Lender Can’t Talk to You, You’re Blind
This is one of the most common mistakes.
If you don’t have proper authorization:
👉 You can’t get loan information
👉 You can’t fix problems
👉 You don’t even know what’s actually happening
And by the time you realize it…
You’re reacting instead of managing.
“The deal is performing… payments are being made… but the lender is still threatening foreclosure because of the Due-on-Sale clause.”
👉 Answer: This is where partial understanding shows up.
You need to:
- Communicate immediately with all parties
- Understand your options before reacting
- Recognize that enforcement is inconsistent—but not impossible
If you don’t know how to respond, you’re guessing under pressure.
“The deal is performing… payments are being made… but the lender is still threatening foreclosure because of the Due-on-Sale clause.”
👉 Answer: This is where partial understanding shows up.
You need to:
- Communicate immediately with all parties
- Understand your options before reacting
- Recognize that enforcement is inconsistent—but not impossible
If you don’t know how to respond, you’re guessing under pressure.
The Risk Doesn’t End at Closing
This is where most people get caught off guard.
They’re taught how to:
Get the deal
But not how to: Manage the deal
Months later.
When something changes.
When something doesn’t go as planned.
Banks DO SOMETIMES Call the Loan Due
There's a Pattern Here - Lack of Education
None of these problems are random.
They all trace back to the same issue:
Missing pieces at the beginning of the deal.
Here’s the frustrating part…
A lot of people are learning these deals:
- From Facebook groups
- From other beginners
- Or from trainings focused on getting the deal done
But skipping what happens:
👉 After closing
👉 When something changes
👉 When something goes wrong
Because it’s easier to sell the opportunity
than it is to explain the responsibility.
Done Right… This Strategy Works
This isn’t about saying Subject To is bad.
It’s not.
Done correctly, it can:
- Help sellers solve real problems
- Create opportunities for investors
- Be a legitimate, ethical strategy
But only when:
👉 It’s structured correctly
👉 It’s clearly explained
👉 And everyone involved is protected
If You Want to Go Deeper
We’re bringing Vena in for a full Master Class where she walks through this in detail—from structure to documentation to what actually happens after closing.
You can find it on the MAREI Calendar.
Subject To
Subject To is a very valuable tool for help sellers, get banks paid, and turn a profit for investors. But in the wrong hands or done without knowing what you are doing is putting the entire practice in the cross hairs of law makers..
