Subject To or to not Subject To?

[Jordan Alexander]

Hi everyone,

I follow Pace Morby and a couple of other creative finance masters on social media. When it comes to creative finance, I personally lean more towards seller finance as I like getting to work with owners and building relationships with them. I'm not opposed to subject to, but my fear is whoever I am taking over the existing mortgage from will not continue making the payments. How do you mitigate this risk? Is it just as simple as entering your account information in their mortgage payment portal and making sure the payment comes from your account? Thoughts?

Thank you!

[Nicole Heasley Beitenman]

I'd never enter into a sub-to agreement unless I was the one making the payments. What's common practice? I'd talk to some investors experienced in sub-to, and possibly an attorney.