Seeking help with Subject - To Purchase

[Alton Warren]

Hey BP family,

Quick question for those actually doing subject-to deals in Texas…

I’ve got a live opportunity with a seller willing to walk away with what’s owed, and the existing loan is sitting around 3.6% — so I’m seriously considering a subject-to structure.

Before I move forward, I want to make sure I do this 100% correctly and ethically.

For those experienced:

• What are your must-have protections on these deals?
• Any surprises you ran into your first few times?
• How are you handling insurance and communication with the lender?

And most importantly —
Who in DFW is actually closing these deals? (title companies or reps)

I’m taking action right now and want to build this part of my business the right way.

Appreciate any guidance.

— Alton Warren

[Ken M.]

Quote from @Alton Warren:

Hey BP family,

Quick question for those actually doing subject-to deals in Texas…

I’ve got a live opportunity with a seller willing to walk away with what’s owed, and the existing loan is sitting around 3.6% — so I’m seriously considering a subject-to structure.

Before I move forward, I want to make sure I do this 100% correctly and ethically.

For those experienced:

• What are your must-have protections on these deals?
• Any surprises you ran into your first few times?
• How are you handling insurance and communication with the lender?

And most importantly —
Who in DFW is actually closing these deals? (title companies or reps)

I’m taking action right now and want to build this part of my business the right way.

Appreciate any guidance.

— Alton Warren

Actually a Wrap and Subject To are two entirely different techniques that may seem similar but have huge legal differences. It's best not to confuse the two.

If you and the seller are both happy with doing the Wrap, that is the better way to go. As mentioned, the Due on Sale is real and can be called, so you need to be in a position to pay it off on short notice, either by personal reserves or by a bank or hard money lender loan.

As of April 2026, it is not a problem commonly, to have a bank call a loan unless payments are being missed. However, there is a "Guru" going around the country pushing "no money down" SubTo in a careless fashion, so the danger of having loans called may increase significantly. Your Wrap needs to be done properly.