I recently attended a webinar on subject-to (SubTo) real estate strategies and I’m trying to better understand the potential downsides—especially in the context of today’s housing market.
From what I gathered, the model relies heavily on:
- Taking over existing mortgages
- Continued price stability or appreciation
- Seller cooperation long-term
What I’m unsure about is how this holds up if:
- Prices decline significantly
- Sellers change their situation or expectations
- Financing/liquidity tightens
For those who are more skeptical of these strategies, what are the biggest failure points you’ve seen or expect? Are there examples where this has gone wrong in past cycles?
Not looking for promotion—just trying to pressure-test the risks before forming an opinion.
u/Best-Law-7775 — 9 days ago