Wyatt Reed shares how he went from factory worker in small-town Tennessee to owning 150+ properties using creative finance and seller financing.

After early flips left him cash-poor, Wyatt pivoted to a model that blends BRRRR-style acquisitions with back-end seller financing—often using land contracts—to generate strong monthly cash flow while acting as the bank instead of a landlord.

In this episode, Wyatt breaks down:

• Combining BRRRR with seller financing for flexible exits

• Anchoring low offers before pitching creative terms

• Minimal rehabs focused on essentials only

• Ideal property types and markets

• Average cash flow of ~$650 per deal

• Interest rate spreads (buy ~7%, sell ~11%)

• Finding buyers fast via Facebook Marketplace

He also shares scaling lessons, lender transparency, and advice for new investors: focus on lead flow and deal-making before tools or automation.

Watch at https://www.youtube.com/@Sub2Investor

Visit https://www.sub2investor.com/ for resources.

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Hans debunks claims from a popular Airbnb influencer alleging that subject-to (sub2) real estate deals are illegal and constitute conspiracy to commit mortgage fraud.

The influencer argues that systematically targeting sellers for sub2 deals and concealing transfers from lenders violates due-on-sale clauses, risking legal action. Hans counters with evidence: HUD-1 settlement statements and closing disclosures include line items for sub2 transactions, suggesting federal recognition.

A specialized attorney’s document clarifies that due-on-sale clauses grant lenders the option to accelerate loans but do not prohibit transfers or constitute fraud. Lenders rarely enforce these clauses if payments are timely, often adopting a “don’t ask, don’t tell” stance. Hans critiques a cited Reddit “horror story” as a case of poor investor conduct, not systemic illegality. No known lawsuits target sub2 investors for due-on-sale violations.

Hans urges transparency and ethical practices.

Visit https://www.sub2investor.com/ for resources.

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Hans interviews Dan Deppen from Call the Underwriter, a service ensuring compliance for seller financing in real estate.

Dan explains the importance of underwriting to vet borrowers’ ability to repay, particularly for owner-occupied loans under Dodd-Frank, which sets a low bar for compliance but requires validating income and providing TRID disclosures (Loan Estimate and Closing Disclosure). Lease options require upfront underwriting to ensure future compliance if converted to seller financing.

Ideal borrowers include self-employed individuals with decent credit (620+) or ITIN borrowers with consistent payment histories. Contracts for deed face the same regulations as traditional mortgages. Proper underwriting enhances loan value for potential sales to note buyers. Dan warns against risky practices like deeds in lieu, which may be challenged legally.

Visit https://www.calltheunderwriter.com/ for compliance services and https://www.sub2investor.com/ for Hans’ resources.

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Hans shares a clear blueprint for scaling massive passive income through creative finance, emphasizing subject-to purchases and seller financing.

For beginners, he outlines a two-year plan: Year 1 involves securing 7 deals (1 in Q1, 1 in Q2, 2 in Q3, 3 in Q4) at $400/month cash flow each, totaling $2,800/month. Year 2 targets 12 deals (1/month), adding $4,800/month, for a total of 19 deals and $7,600/month after two years. Benefits include low/no-money-down acquisitions, long-term buyer retention, and equity spreads from amortizations or payoffs.

Hans stresses avoiding shiny object syndrome, focusing on a clear vision, and leveraging seller financing over landlording for scalable, passive income.

Visit https://www.sub2investor.com/ for coaching and tools.

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Hans explains why targeting on-market MLS listings is a top strategy for finding subject-to deals in June 2025, especially for beginners.

With rising interest rates and slower markets, motivated listing agents—eager for commissions—act like motivated sellers, making them ideal partners for creative finance deals. Benefits include: 1) Agents’ motivation to close, 2) Free practice handling objections, 3) Sellers signaling intent to sell, 4) Properties in good condition, and 5) Agents aiding negotiations. While commissions (2.5-3%) must be paid, Hans prioritizes full agent fees and uses his deal evaluator to determine cash offers to sellers.

This no-cost marketing channel lets beginners find low-equity, long-days-on-market deals on Zillow or PropStream.

Visit https://www.sub2investor.com/ for tools and mentorship.

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Hans dissects a deal where a buyer refinanced out of a contract for deed on a duplex, paying him off with a $12,000 check after 3 years, netting $35,661 total profit.

Purchased via seller financing from a tired landlord for $5,000 down at 5% interest, the duplex was sold to an investor for a $29,000 down payment, yielding $212/month cash flow. While losing monthly income is a downside, Hans highlights the win: a near-infinite return on a $11,000 investment, avoiding landlord hassles like maintenance and tenant issues. Challenges included finding a lender for the refinance and navigating an uncooperative underlying seller. 

Hans advocates seller financing over wholesaling for long-term wealth, emphasizing passive income over short-term flips.

Visit https://www.sub2investor.com/ for mentorship and courses.

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Hans breaks down a stellar subject-to deal in a rural Illinois town with a Walmart supercenter, sourced from an expired MLS low-equity list.

The seller, eager to travel, handed over a $238,000 house with a $213,000 loan at 2.99% interest. Hans paid $25,000 cash to the seller, closed with $1,400 in costs, and sold it on a contract for deed for $259,000 at 6.92% with a $26,000 down payment, yielding a $611/month cash flow spread. With no repairs needed, this deal projects $68,000 profit at 5 years, $115,000 at 10 years, and $223,000 at 30 years.

Hans emphasizes the power of seller financing over landlording for passive income, leveraging appreciation and amortization resets if the property is taken back.

Visit https://www.sub2investor.com/ for mentorship and courses.

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Hans dives into the reality of taking back a property sold via lease-option or seller financing (contract for deed or wrap mortgage), a scenario that occurs in roughly 5-10% of deals due to life events like job transfers or divorces.

Downsides include: 1) Emotional/time involvement, 2) Potential property damage costs, and 3) Debt liability during vacancy. However, upsides are significant: 1) It’s like a new acquisition without marketing, 2) New down payment/option fee recoups costs, 3) Principal paydown on underlying debt, 4) Market appreciation boosts value, and 5) Resetting the amortization clock increases profit spreads.

Hans emphasizes building a robust portfolio (20-50 deals) to absorb cash flow dips.

Visit https://www.sub2investor.com/ for coaching and templates.

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Hans compares contract for deed (CFD) and wraparound mortgages for seller financing, detailing their pros and cons for generating passive income.

CFDs keep the seller as legal title holder, offering: 1) Eviction options for defaults (under 20% equity), 2) Quick closings, 3) Lower costs, and 4) Simpler handling of underlying debt. However, CFDs face: 1) Insurance complications, 2) Utility issues, 3) Perception as an inferior product, 4) Buyer selling complications, 5) Refinancing challenges, and 6) Lower note value. Wraps convey title to the buyer, providing: 1) A superior product, 2) Higher down payments/rates, 3) Streamlined structure, and 4) Higher note value. Downsides include: 1) Due-on-sale clause risks, 2) Higher costs, 3) Complexity/time, and 4) Foreclosure requirements.

Choose based on state laws and risk tolerance!

Visit https://www.sub2investor.com/ for templates.

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Hans reveals why lease-options are his go-to exit strategy for creating passive income this 2025.

Combining a lease agreement with a separate option-to-purchase contract, lease-options shine for: 1) Testing tenant-buyers for reliable payments, 2) Securing 3-5% option fees for skin in the game, 3) Allowing evictions for non-payment (unlike seller financing), 4) Enabling fast deal execution, 5) Avoiding closing costs, 6) Being easy to explain to buyers, 7) Using simple paperwork, 8) Aligning with tax strategies for investment properties, 9) Supporting installment sale tax benefits, and 10) Deferring taxes on option fees until exercised or forfeited.

Learn why lease-options pair perfectly with subject-to acquisitions for massive cash flow!

Visit https://www.sub2investor.com/ for coaching and templates.

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