How a 3% Interest Rate Cost Me Over $180,000 (Avoid My Mistake) w/Tanner Litchfield
"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 strategy
The “due on sale" clause which can easily lose you an entire property if called
Why you MUST understand the zoning and rules for your rental property BEFORE you buy it
The “gray area” of creative financing that is putting new and veteran investors at risk
Why having a solid network in your investing area can stop you from getting burned
And So Much More!
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