In Episode 80 of the Real Life Planning Podcast, Cynthia Meyer, CFP®, CFA®, ChFC® reviews the creative strategy of "subject to" financing, where an investor takes over payments on a seller’s existing mortgage without assuming the loan. Cynthia breaks down how it works, who it's for (hint: definitely not beginners), and the legal and financial risks every real estate investor must understand before pursuing this advanced tactic.

" The “subject to” financing strategy can be a powerful strategy for a certain slice of real estate investors, but it can also be dangerous depending on the execution.” - Cynthia Meyer

This week on Real Life Planning Podcast:

💡What does “subject to” financing actually mean, and how does it work in real life? [00:01:55]

💡Who would sell their home this way—and why? [00:02:44]

💡What are the major benefits for experienced investors? [00:06:03]

💡What are the risks of “subject to” and what could go wrong? [00:07:40]

💡What best practices can reduce risk in a “subject to” transaction? [00:14:06]

Takeaway Quotes:

" This is really something that requires knowledge, strong systems, good legal support, lots and lots of cash reserves, and really good systems and processes to make this work."-Cynthia Meyer

" It's a real estate business strategy. We've been seeing more about this as interest rates have gone up."- Cynthia Meyer

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Real Life Planning, LLC is an Investment Advisor registered with the States of New Jersey, New York, Texas, Virginia, and California. All views, expressions, and opinions included in this communication are subject to change. This communication is not intended as an offer or solicitation to buy, hold or sell any financial instrument or investment advisory services. Any information provided has been obtained from sources considered reliable, but we do not guarantee the accuracy, or completeness of, any description of securities, markets or developments mentioned. Our current disclosure brochure, Form ADV Part 2, is available for your review upon request, and on our website, REALLIFEPLANNING.COM.

"Subject To" Financing: Risks and Benefits