In this Q&A Thursday video, Chris Prefontaine addresses investor concerns about the safety of "subject‑to" (sub‑2) real‑estate deals following misconduct by a Pace Morby student who allegedly mishandled seller payments. He acknowledges that bad actors exist in any industry but emphasizes that sub‑2, when executed correctly, remains a win‑win strategy for investors and sellers. Prefontaine outlines two key safeguards: (1) securing a qualified attorney who can train coaches on proper deal structuring and paperwork, and (2) using updated, legally‑compliant documents that avoid triggering due‑on‑sale clauses and adhere to emerging state regulations (notably in Arizona and Florida). He reassures viewers that the Smart Real Estate Coach community has already adjusted its attorney‑training and paperwork to reflect these changes. The video concludes with a promotional call‑to‑action, directing viewers to free books, strategy calls, and discovery sessions via smartrealestatecoach.com/getgoing and 3paydaysbooks.com, positioning the "3 Paydays" trademarked system as a comprehensive, ethical approach to creative real‑estate investing.
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So the big question here, guys, is can we still buy subject to existing mortgages, sub to, after Pace Morby student sort of messed up big time is what I'm hearing out in the field and screwed around with sellers not paying their bills. Hey guys, welcome to this week's Q&A Thursday. You know, this is coming hot and heavy from people in our community and people outside our community. But the big question is, with everything going on, in light of everything going on with, as usual, someone messing up and doing things incorrectly, not moral, not ethical with respect to sub-2 deals, there's a lot of questions flying around like, can we still buy sub-2? Well, here's the deal, guys. There are bad apples in every industry of insurance, real estate, you name it, financial planning that go off and do stupid shit and they screw up things for the moral, ethical investors out there trying to do good and do good things for people and help people. Creative real estate is interesting because when done properly, it's a win-win and you're just looking to help people. That's it. Now, I'm aware that someone or maybe a handful of someone's students screwed up. I get it. But here are the facts. There are always going to be pivots in each niche in real estate. For example, that we're in, for us, it's sandwich leases or lease purchase. We call them AO. They're sign-outs, one of our exit options. Owner financing in, in sub-2. To the point of this, as things pivot, you'll need the right attorney on your team. That's it. It's not brain science, guys. You need the right attorney on your team. There's one constant in real estate that's going to keep changing and these things are going to keep happening, right? So there's going to be legislature, there's going to be laws, and that's okay. It's to protect people. So in the Smart Real Estate Coach community, we have exactly that example because some new laws are sort of playing around. They haven't passed yet, but being talked about as of the time of this filming anyway, they might be in place now in Arizona and in Florida for the 2 that I heard most recently. And with that student from the sub-2 camp screwing everything up, we have our attorney training our coaches this month. It's already scheduled on how to properly do sub-2 deals. A, the way we always do them with the right structures paperwork-wise, how you paper the deal to be a win-win, how you paper the deal to protect the sellers, all those things that are done properly so as to not trigger a due-on-sale clause or do anything incorrectly, immorally, or unethical. And that's— so that's step 1. Step 2 is because of everything that's going on, our attorney has adjusted the paperwork and the papering of this thing, I call it, to make sure it's done even better in light of everything going on. So don't panic over the idiots that mess up. Do pick The right community and the right attorney and go out and help a bunch of sellers the right way. Short, short answer, right? Just go out and help a bunch of sellers and do the right thing. If you're curious on how to learn how to do this properly, by all means, get all of the free books. I'm about— I'm big on free. If you've seen this kind of creative real estate for the first time, not sure where to get started, go to smartrealestatecoach.com/getgoing for free books, strategy calls, and a whole bunch more. We're going to help you get going the wicked smart way. We've been after this for over a decade. Doing exactly that. Go over to 3paydaysbooks.com and get yourself the free books, and then you can simply reach out to us because we'll message you as soon as you get the free books and they're free. You won't put a dime in for shipping. Just give us your address and then go ahead and message us and we'll go ahead and get a strategy call with you, a discovery call, so we can kind of go through your life, your habits, your work, your, your skill sets, and understand how and when to fit creative real estate into your world. To go off and create the right way. 3 Paydays, we've trademarked that federally, works incredibly well and it works on 4 strategies that we have, not just one. See you next week on the next Q&A Thursday, guys.
