Episode #956 "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. ~~~~ Join BiggerPockets for FREE 👇 https://www.biggerpockets.com/signup?utm_source=owned_media ~~~~ Expand Your Investing Knowledge With the BiggerPockets Books: https://store.biggerpockets.com/?utm_source=owned_media ~~~~ Find an Investor-Friendly Agent in Your Area: http://biggerpockets.com/agentmatch ~~~~ Find Investor-Friendly Lenders: http://biggerpockets.com/findlenders ~~~~ Property Manager Finder: https://biggerpockets.com/findapm ~~~~ Hear Dave and Henry on the “On the Market” Podcast: https://link.chtbl.com/OTM ~~~~ The Hidden Risks of “Subject To” Real Estate w/Eddie Speed: https://www.biggerpockets.com/blog/on-the-market-206?utm_source=youtube&utm_medium=description&utm_campaign=none ~~~~ Creative Financing: How To Use It In Real Estate: https://www.biggerpockets.com/blog/creative-financing?utm_source=youtube&utm_medium=description&utm_campaign=none ~~~~ Connect with Tanner on BiggerPockets: https://www.biggerpockets.com/users/tannerl23?utm_source=youtube&utm_medium=description&utm_campaign=none ~~~~ Connect with Dave: BiggerPockets: https://www.biggerpockets.com/users/davem27?utm_source=youtube&utm_medium=description&utm_campaign=none Instagram: @thedatadeli or https://www.instagram.com/thedatadeli/ ~~~~ Connect with Henry: BiggerPockets: https://www.biggerpockets.com/users/henryw22?utm_source=youtube&utm_medium=description&utm_campaign=none Henry: @thehenrywashington or https://www.instagram.com/thehenrywashington/ Show notes at: https://link.chtbl.com/BPRE 00:00 Intro 01:20 Ditching Dentistry to Invest 04:35 Finding Creative Financing 06:15 A Perfect Deal on Paper 09:42 Scoring a 3% Interest Rate? 12:14 Things Go Really Wrong 20:33 A Massive "Gray Area" 25:01 A Chance of Recovering? 29:45 What Tanner Would Do Differently