Description

Are you truly protecting yourself when you take over someone’s mortgage? Are your disclosures clear? Is your paperwork defensible? And if a lender enforced the due-on-sale clause tomorrow, would your deal survive?

In this fan-favorite replay of the REI Freedom Podcast, host Jeremy Beland sits down with creative finance expert Caleb Christopher to break down what most investors misunderstand about subject-to transactions.

Sub-to deals can be powerful wealth-building tools. But when structured improperly, they can expose investors to legal risk, damaged reputations, and long-term financial consequences. Caleb pulls back the curtain on the most common mistakes investors make and explains how to structure creative financing deals the right way safely, legally, and ethically.

Caleb Christopher is the founder of Creative TC, DOS Guard, and Creative Title. After becoming an accidental landlord and discovering creative finance through Rich Dad Poor Dad, Caleb recognized a dangerous gap in the industry: plenty of education on getting deals, but very little guidance on closing them correctly.

In this episode, he shares practical strategies for evaluating sub-to opportunities, protecting sellers, mitigating due-on-sale risk, and building a professional team that ensures your deals hold up long-term.

Key Topics Covered

• How Caleb transitioned from accidental landlord to creative finance specialist
• What makes a strong sub-to candidate, including equity position and seller flexibility
• Red flags investors should avoid, especially negative equity and future mortgage plans
• The dangers of “naked sub-to” deals without proper documentation
• Why full transparency and early disclosures protect both parties
• How balloon payments can severely restrict exit strategies
• Understanding the due-on-sale clause and how lenders enforce it
• Why maintaining a positive seller relationship is critical post-closing
• Building a team that understands complex creative transactions

The Reality of the Due-On-Sale Clause

The due-on-sale clause is not theoretical. It can be enforced. Certain lenders are more aggressive than others, and when it happens, investors without a plan can find themselves in serious trouble.

Caleb explains how proper structuring, seller communication, and services like DOS Guard can provide peace of mind and reduce exposure. The goal is not to avoid risk entirely, but to manage it responsibly.

Common Investor Mistakes

• Taking over payments without proper legal documentation
• Failing to understand the seller’s long-term housing goals
• Disclosing risks too late in the process
• Structuring deals that limit resale options
• Operating without experienced transaction and legal support

Creative finance requires uncommon competence. Without it, you risk becoming the case study no one wants to be.

Connect with Caleb Christopher

Instagram: @fcalebchristopher
Creative TC: creative-tc.io

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This replay episode is packed with real-world lessons for investors, operators, and entrepreneurs who want to combine freedom, impact, and profitability.

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