In this Q&A session, Chris Pre ("Chris Pre") addresses the Wicked Smart real‑estate community about the surge in subject‑to (sub‑2) property deals emerging after the COVID‑era forbearance period. He explains what a sub‑2 transaction is, why sellers are motivated to sell their homes subject to existing debt, and how investors can capitalize on this trend. Chris provides practical resources: a free script toolkit (smartrealestatecoach.com/toolkit), a financing arm called Wicked Smart Finance for deal‑by‑deal funding, and a long‑term business‑credit program (Fund and Grow at smartrealestatecoach.com/fundandgrow). He also promotes the weekly free Wicked Smart Sit‑Down webinars where members can practice scripts, ask questions, and receive coaching. Throughout, he emphasizes positioning oneself as a sub‑2 specialist to generate generational wealth and advises building business credit to handle future market shifts.
Chapters
Hey there, it's Chris Pre. Welcome to a Q&A Thursday. I want to talk to you about something that keeps coming up in our community. The cool thing about having the wicked smart community that we have, if you're not familiar with it, is that it tends to be a really cool microcosm of society in that we've got 100+ associates. They're in Slack every day. They're on Zoom every week with us. And we get to hear what's going on in the market. Trends, are things slowing down? Are more sellers calling back? Is it taking less or more calls to get a deal? And what came up last week, like rampant over the last few weeks actually, is, Chris, how can we prepare better? How can we script better? How can we deal structure better to handle sub-2 deals? Now sub-2, if you're not familiar with it, just simply means you're buying a property subject to the existing underlying debt that the seller has. That underlying debt is going to stay in the seller's name. You are buying the property like any other purchase you would do conventionally. The difference is on the settlement statement. If you've ever bought a home for your own set, your own family, on the HUD settlement statement, it says a line item that basically is the new money from your loan coming to the table. Instead, it says subject to existing financing, and whatever that amount is due at that time, it goes on to the HUD-1. Okay. So you're buying this property, and the, the, the reason these are ramping right now, and the reason we're getting a lot of demand from them, the reason I want to help you get in front of this major trend, is that people need help right now coming out of this COVID chaos. They do. Look, it's been a couple years as of the time of this filming, and now they're just starting to surface because all that happened in its simplest form is people kicked it down the road. Banks kicked it down the road. They did the forbearances, they put it on the back, they kicked it down the road, and now— It's pay time. And so we're getting calls with people saying anywhere from, hey, I need help with $4,000 in arrears and take my property, to I'm $50,000 behind, take my property. And some of these have a lot of equity, sadly. So instead of the bank getting that property through foreclosure, the seller getting a 7-year nightmare— and now why do I say that if you're new to this? You have a foreclosure on your credit. I'm not a credit expert, please. I'm not an attorney. But it's going to take about 7 years for that to wash out and correct itself, and for people looking at your credit to not care about it. And so how can you prep for that besides being on the weekly Wicked Smart sit-downs that we do that are free, that you could talk scripts with us, you can do question and answers with us? Besides being on that every week, and besides being in our community— if you're not in our Wicked Smart community now, there are plenty of ways to get involved. But aside from that, let me give you a couple hints. I'm going to equip you here even if you're not in our community because I want you to take some kind of action. And you can get yourself ahead of this trend and start putting together 3 paydays per deal and start really piling your income and your generational wealth. Go to smartrealestatecoach.com/toolkit. You will get all our scripts for free. That's a nice start. Now, what happens when you get on the phone, you're comfortable with that script we just gave you for free, and they start calling you? Or they say, yeah, tell me more. Or, yeah, I'm all screwed up. I need to, I need to have you help me. Because there are lists you can buy with just call after call after call that they need your help. 2 things I'll tell you. Number one, we have one of our affiliate companies in the Wicked Smart Companies is Wicked Smart Finance. Wicked Smart Finance is set up to fund deals even though we teach no money down. There's opportunities that come up where people say, okay, I can't do that deal, it needs money. So we've created Wicked Smart Finance to finance our higher-level associates in their deals that might require money that are really good deals they shouldn't pass up. Now some of you can do that at the other levels. It's just going to be a buy submission, uh, deal-by-deal basis. So that's why I'm bringing it up here. That is a short-term play for you. Hey Chris, I've got a killer deal, I need help. We'll talk about it. But better for you, short and long term, is to go to Fund and Grow. Simply go to smartrealestatecoach.com/fundandgrow. You're going to learn there how to establish business credit That's not your personal Social Security number. This was key for me coming out of the crash and establishing the right pathway and the right credit. I don't care if you have zero entity now. This company will even set up your first entity and then show you how to build business credit in that entity. And this is not a short-term band-aid. This is a 2, 3, 4, 5, a decade-long process you'll go through with them. You'll stay with them and you'll beginning to— you begin to build your credit in your business name. That starts as low as $10,000 or $25,000 or $50,000, and over several years will grow to $500,000 to $1 million. Now, you are in a position to handle any trend. You're in a position to handle any headache that might come with your existing deals, even if you're doing deals no money down, and you'll be at ease with the fact that it's all in your business name and not yours. That's the best way I can tell you to prep to get ahead of this sub-to demand where people are going to need you as their guide. When you can position yourself as the expert, when you can position yourself as the authority and get ahead of all these homeowners that need your help and specialize in this sub-to niche, you are going to create some serious wealth for yourself and for generations to come in your family. I'd love to interact with you more on this. So I know I referenced the toolkit earlier so you can get all our free scripts. There's a whole bunch of stuff in there for you. You're gonna be surprised at what we're willing to give you for free. In there also is directions on how to get to, how to register for our weekly Wicked Smart Sit Down. Let me tell you something, you're going to be with 100 people typically on a weekly basis for free, and you're going to interact with myself personally or my son-in-law Zach or my son Nick or one of our head coaches, and you're going to have time, 50 minutes, to ask anything you want and to take in a free seminar every single week. We want you to be exposed to this amazing niche. We want you to be able to change generational wealth in your family, and be able to do that nationwide or in your backyard with the buyers and sellers that need your help. smartrealestatecoach.com/toolkit. I guarantee you this Thursday when we interact on that together, you're gonna consider it time very well spent.
