In this episode of Properties to Profits, I unpack one of the most powerful—and misunderstood—strategies in real estate investing: the “subject to” deal. If you’re hitting walls with traditional financing or looking to acquire properties with minimal upfront cash, this approach might be your next move. But be warned: it’s not without risk.

I walk you through how these deals work, why they’re a win for both investors and sellers, and what risks you absolutely need to understand before diving in. Whether you’re a seasoned investor or just getting started, this episode offers the insights you need to evaluate if subject to deals should be part of your investing toolkit.

Key Takeaways

1. Control Without Credit – Subject to deals let you acquire properties by taking over existing mortgages—no credit checks or bank qualifications required.

2. Win-Win for Sellers – This strategy offers immediate mortgage relief to distressed sellers, helping them avoid foreclosure and protect their credit.

3. Risk Requires Readiness – The due-on-sale clause is real. Always have a backup plan—like the ability to refinance or sell—before you close a subject to deal.

Timeline Summary

[0:00] - Why subject to deals are relevant in today’s market

[1:25] - What “subject to” really means and how it works

[2:21] - Benefits for sellers: financial relief and credit protection

[3:13] - Benefits for investors: minimal cash and fast control

[4:39] - The due-on-sale clause: the hidden risk every investor must understand

[6:30] - Why integrity matters—don’t put sellers in worse situations

[8:01] - Real-world example: taking over a two-mortgage home in Canal Winchester

[9:25] - The importance of having an exit and payment plan

[10:13] - Final thoughts: power and pitfalls of this creative strategy

Links & Resources

• Follow me on Instagram: @RealEstateMike02

If this episode gave you a fresh perspective or valuable insight, please rate, follow, and leave a review. And don’t forget to share this episode with your fellow investors. Let’s keep turning properties into profits—together.