This week’s conversation at MAREI hit a nerve—and for good reason. Across the country, more investors are rushing into subject-to deals with the belief that creative financing magically fixes bad numbers. That belief is exactly what Vena Jones-Cox is warning about.
In a recent Facebook post, Vena didn’t mince words. Unethical teaching and sloppy deal analysis, she says, are putting one of the most powerful tools in real estate at risk—not just for investors, but for sellers too.
And if this continues? Regulation is almost guaranteed.
The Core Warning: Not Every Subject-To Deal Is a Good Deal
Vena’s concern isn’t with subject-to as a strategy. It’s with how it’s being used.
“The belief that any subject-to deal is a good subject-to deal, simply because you don’t have to qualify for the loan or put much money down.”
That idea used to work often enough to feel reliable—when interest rates were low, equity was plentiful, and appreciation covered mistakes. But that market is gone.
Today’s reality looks very different:
Higher interest rates (often 6–7%)
Little to no equity in recent purchases
Rents that haven’t risen enough to bail out weak deals
Loan modifications creating 38-year remaining terms with hidden second liens
In that environment, bad deals don’t just fail quietly—they hurt sellers, destroy credit, and invite scrutiny that affects everyone.
Vena’s Rule: One of These Must Be in Abundance
According to Vena, a subject-to deal must deliver at least one of the following in a meaningful way—or a solid combination of two:
Strong cash flow (over $300/month, net of real reserves)
Real equity (more than 20% after true repairs)
Short payoff horizon (within 10 years)
No equity. No cash flow. Decades left on the loan?
That’s not creative investing. That’s risk transfer—to the seller.
The Line That Stopped the Room
This is the line we kept coming back to during the meeting, because it cuts through all the hype:
“Magic exit strategies don’t save bad deals. If a deal won’t work as a normal long-term rental or a straight retail sale, don’t buy it—no matter what the terms.”
Lease-options, future appreciation, “I’ll figure it out later” thinking—none of that fixes fundamentals. A calculator does.
And when investors ignore that reality, it’s not just their future at stake. Subject-to defaults don’t just wipe out deals; they damage real people’s credit and lives.
That’s how strategies get regulated out of existence.
Subject-to, seller financing, creative structuring—these are powerful tools. But they demand more skill and discipline in today’s market, not less.
What’s Next: Thriving in the “New” Market
That’s why Vena is launching a live online master class on the 10th, focused on how to actually succeed in this market—not the recycled hype version of it.
In this workshop, she’ll cover how to:
Make smart deals in a flat or even declining market
Build real evaluation skills and stress-test your portfolio
Solve problems you may already have (stuck rehabs, negative cash flow, ballooned loans)
Get your mindset right when sitting on the sidelines feels safer—but isn’t
It’s practical. It’s direct. And it’s built for investors who want to be around five and ten years from now, not just five deals from now.
It’s on the MAREI Calendar – check your local REIA if you are not a member of MAREI.
Final Thought
Subject-to isn’t the problem.
Bad analysis is.
And as Vena makes clear, this market doesn’t reward speed or blind optimism—it rewards education, ethics, and the willingness to do the math.
That’s exactly the conversation we want happening inside MAREI.
Vena Jones-Cox
More from Vena
OH Please! You want to be creative, go it alone & save a few bucks exposing both parties to Law suits than suffer the consequences.
Either hire a Broker or Lawyer & pay the price. Commissions & lawyer fees can be negotiable & or carried.
Ken Collyard
yes, spending a few dollars to get it right up front saves you $1000 when it all goes wrong.