Welcome to the podcast Real Estate Investing with Coach Carson. I'm your host, Chad Carson. You can also call me Coach. And this is a show to help you get out of the financial grind so you can do more of what matters. And in today's episode, I'm talking about a strategy called buying

properties subject to the mortgage. Now, this is an old strategy that's become popular again

lately, primarily because in a high interest rate environment of 7 and 8% 30-year mortgages,

this is a strategy where you could buy properties with 2, 3, and four percent mortgages by taking over payments

on existing properties. But as you'll hear in this episode, I have mixed feelings about this

strategy. It's definitely one that I use, especially early in my career. But I kind of look at it

like a power tool. Like if you're a carpenter using these amazing power tools, they can help you

build a house, but they can also hurt you if you don't use them correctly. So listen to this episode to hear my thoughts on buying subject too. This is another episode that I recorded with Michael Zuber and his show one rental at a time. And he's allowed me to republish it here for all of you. So I hope you enjoy it and please let me know if you have any questions or comments. You can leave a comment below if you're watching on YouTube or if you're listening to this, send an email to podcast at coach carson.com. And if you're new to the podcast, be sure to hit the subscribe button so you don't miss anything. I have a new episode that comes out every Monday. Now let's get to the interview. All right, folks. We have the man, myth, the legend, somebody known as Coach Carson.

How you doing, buddy?

Doing great, Michael.

Good to be here.

Thanks.

Awesome, man.

Folks, if you haven't got his latest book, the small and mighty investor, you are

truly missing out.

You can get it, I'm sure, on bigger pockets or now I think it's even available on

Amazon.

So do yourself favor, go check that on. How was that right in that book? It was a bear, let's be honest, but it was a passion. It was a passion project. And, you know, the thing that makes it fun is the stories. Like, I love hearing stories about people. And so I have the framework and the ideas that have worked for me. But then when you go find dozens of other people who've also been able to succeed as small investors, that's, it's inspiring. And so it makes it, makes it fun. Yeah. Well, one of the things I want to do in our quick conversations together is highlight creative financing options, because I think if we go through a broken housing market, there will be people that are lucky enough to have cash and go get a bank loan and all of that. But I think it's going to be, this is going to be the early 80s. It's going to be 81, 82, 83. A lot of the transactions, and I think a larger percentage of the transactions over the next two years will be done creatively. There's a gentleman that I'm sure you've heard of that it's also a bigger pockets author

Pace Morby talks about subject two all the time right he's the sub two guy why don't you

kind of give your spin on sub two because I know you've done it been around it a while and you

have kind of experience there that I simply don't have yeah so any seller financing I'm going to

get the subject to specifically though any creative financing is just sticking outside the box. It's not just going to the bank, putting 20% down, which is great, by the way. If you can do that, like, absolutely, that's great. But we're in an environment where it's tough to make deals work using the standard financing. So seller, seller financing, subject to, subject to is a, a type of purchase of a

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