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Is there still opportunity in today’s real estate market for agents and investors? According to Chris Prefontaine, founder of Smart Real Estate Coach and a 4 time best selling author, the answer is yes, but the opportunity looks different than it used to. Through strategies like owner financing, lease purchases, and subject-to deals, agents and investors can structure deals that create three separate paydays: cash up front, monthly cash flow, and profit at the back end. Millions of homeowners own their properties free and clear and many are open to creative terms instead of demanding all cash. The market does not have a deal problem. It has a deal structure problem, and the agents who learn to solve that problem are the ones building lasting wealth instead of one time commission checks.
There’s No Deal Problem. There’s a Deal Structure Problem.
Every year, most real estate agents walk past several deals that could change their financial life.
Not because the deals aren’t good. Because the agent doesn’t see themselves as the buyer.
They see a seller who needs a discount, can’t qualify for a traditional sale, or has a property that doesn’t fit the typical buyer pool. So they either pass on the lead entirely or hand it off to an investor for a referral fee.
Chris Prefontaine has spent decades showing agents and investors a different way to look at those situations. And in this episode, he makes the case that the opportunity in today’s market might be bigger than ever, if you know how to structure the deal.
Who Is Chris Prefontaine?
Chris Prefontaine is the Chairman and Founder of Smart Real Estate Coach, a four time best selling author, a former Forbes Business Council member, and a three time Inc. 5000 honoree for fastest growing companies.
He has helped students across North America complete hundreds of creative real estate transactions. And he has done it while navigating the 2008 housing crash, 9/11, COVID, and a near tragic family event. His business was built to survive any market, because it had to.
Most Agents Are Sitting on Deals They’ll Never See Again
Here’s the uncomfortable truth Chris opens with. Most agents come across multiple investment-worthy opportunities every single year.
A seller who can’t get their price through a traditional sale. A property that needs work nobody wants to finance. A free and clear home owned by someone who doesn’t need a lump sum, they need monthly income.
These situations get passed over constantly. Not because they’re bad deals. Because the agent was trained to think like a salesperson, not a principal.
Chris’s challenge is simple. What if you took some of those deals down yourself?
Why Creative Financing Is More Relevant Than Ever
There’s a perception that creative financing, things like owner financing and subject-to deals, are fringe strategies. Something you’d only see in a late night infomercial.
Chris makes the case that the opposite is true right now. With interest rates where they are, more sellers and more agents are open to creative solutions than at almost any point in recent memory.
Millions of homeowners across the country own their properties completely free and clear. No mortgage. No bank to satisfy. And a meaningful number of them don’t need all their equity in cash today. They need income, certainty, or a buyer who will take care of the property they spent decades in.
That is an enormous, largely untapped pool of opportunity.
Owner Financing: A Win for Both Sides
Owner financing means the seller acts as the bank. Instead of the buyer getting a traditional mortgage, they make payments directly to the seller under agreed terms.
Chris breaks down why this can be a genuine win-win. The seller can often get closer to their asking price than they would in a discounted cash sale, while receiving steady income over time, sometimes with favorable tax treatment. The buyer gets terms that don’t depend on a bank’s approval process, which matters enormously when rates or lending standards make traditional financing difficult.
Chris shares a real example of a 30 year owner financing deal in the episode that illustrates exactly how the structure works in practice and why both sides walked away satisfied.
The Three Paydays Model
This is probably the single most important concept in the episode.
Traditional real estate income looks like this: you do the work, you get a commission check, and that’s it. One payday.
Creative deals can be structured to generate three:
- Cash up front at the time the deal is structured
- Monthly cash flow for as long as the deal is in place
- A back end payday when the property is eventually sold or refinanced
Chris’s point is that wealth isn’t built by transactions. It’s built by structure. Three smaller, well-structured deals can create more lasting financial impact than ten traditional commission checks, because the income doesn’t stop after closing.
Subject-To Deals: Access to Rates That No Longer Exist
A subject-to deal means the buyer takes ownership of a property while leaving the seller’s existing mortgage in place. The buyer makes payments on that existing loan, often at an interest rate dramatically lower than anything available today.
Chris explains why this strategy has become significantly more valuable in the current rate environment. Millions of homeowners are sitting on mortgages at rates from a few years ago that simply aren’t available to new buyers. Subject-to investing allows buyers to essentially step into that existing, favorable financing.
It requires careful structuring and proper disclosure, which Chris addresses directly in the conversation. But done correctly, it’s a legitimate and increasingly relevant strategy.
Think Like a Problem Solver, Not a Salesperson
One of the more important mindset shifts Chris talks about is how to approach a seller conversation in the first place.
Instead of walking in with a listing presentation, the goal is to understand the seller’s actual situation. What do they need? Cash now? Monthly income? To be free of the property without the hassle of repairs and showings?
Sometimes the right answer for that seller is a traditional listing. Sometimes it’s a creative purchase. The agents who win in this space are the ones who diagnose the situation first and present the right solution second, rather than forcing every conversation toward the same outcome.
Avoid Shiny Object Syndrome
Chris is direct about this. The real estate and investing space is full of strategies, courses, and “next big things.”
His advice is to commit to one strategy, learn it deeply, and execute it consistently before chasing the next idea. Constantly switching approaches is one of the most common reasons people never build real traction. Creative financing isn’t complicated in concept, but it takes repetition and mentorship to execute well.
Find a Mentor Who Has Survived Multiple Cycles
Chris has been through 2008, 9/11, COVID, and the rate environment shifts of the last few years. That kind of experience is exactly what he recommends people look for in a mentor.
Markets change. Lending standards change. What worked five years ago might not work today. But someone who has successfully navigated multiple cycles has already solved the problems you’re about to encounter. Learning from that experience shortens the learning curve dramatically.
Why This Skill Set Doesn’t Expire
Here’s the long-term case Chris makes. Markets will keep changing. Interest rates will go up and down. Lending standards will tighten and loosen.
But the ability to look at a seller’s situation and structure a deal that works for everyone involved, that skill doesn’t expire. It’s valuable in a hot market, a crashing market, and everything in between.
That’s the real takeaway. Not a specific tactic for a specific moment. A way of thinking that holds up across every market cycle Chris has lived through, and he’s lived through several.
The Real Point
Most people assume the opportunity in real estate has shrunk because the market has changed. Chris’s argument is that the opportunity hasn’t gone anywhere. It just requires a different structure than it used to.
For agents specifically, this episode is an invitation to stop thinking purely in terms of commissions and start thinking about which of the deals crossing your desk this year could actually become assets you own.
Stop passing up the good deals. Learn how to take them down yourself.
🎧 Listen to the full episode here (embed your player above)
Connect with Chris: smartrealestatecoach.com
Free Book: 3paydaysbooks.com/Mike
KEY TAKEAWAYS
- Stop letting good deals walk away. Most agents see multiple investment opportunities every year. The question is whether you’re prepared to act on them yourself.
- Creative financing is more relevant than ever. Owner financing and subject-to deals are becoming increasingly accepted by sellers and agents alike.
- Find a mentor who has survived multiple cycles. Learning from someone who has navigated 2008, COVID, and rate shifts shortens your learning curve significantly.
- Avoid shiny object syndrome. Commit to one strategy and execute it consistently rather than constantly chasing new approaches.
- Free and clear properties create massive opportunity. Millions of homeowners own outright and many are open to payments over time instead of a lump sum.
- Think like a problem solver, not a salesperson. Understand the seller’s situation first. Sometimes the answer is a listing. Sometimes it’s a creative purchase.
- Owner financing creates win-win scenarios. Sellers can get closer to their price. Buyers get terms that don’t depend on a bank.
- Three paydays beat one commission check. Upfront cash, monthly cash flow, and backend profit. Wealth comes from structure, not single transactions.
- Subject-to deals unlock rates that no longer exist. Buyers can step into existing low-rate financing that isn’t available to new buyers today.
- This skill set never expires. Markets and lending change constantly, but knowing how to structure a deal stays valuable in every cycle.
TIMESTAMPS
0:00 Why agents should buy more of their own deals
0:22 Introduction to Chris Prefontaine
2:15 Chris’s journey from builder to investor
3:33 Lessons learned from the 2008 market crash
4:45 The hardest part of investing: getting started
5:32 Why finding the right mentor matters
6:35 Avoiding shiny object syndrome in real estate
7:20 Current opportunities in today’s market
8:30 Rising demand for creative financing solutions
9:20 Why free-and-clear properties are attractive opportunities
10:03 Introduction to owner financing strategies
10:57 How to approach sellers with creative solutions
12:49 Real-life example of a 30-year owner-financing deal
15:13 Understanding the Three Paydays model
16:01 Why proper buyer qualification matters in rent-to-own deals
17:25 How subject-to investing works
19:07 Market opportunities in Florida and distressed markets
20:45 Predictions for the next real estate cycle
22:03 Distressed sellers vs motivated sellers
24:15 Why creative financing isn’t going away
26:00 How agents can add creative financing to their business
27:10 There is no deal problem, only a deal structure problem
28:24 Resources, books, and training opportunities
ABOUT CHRIS PREFONTAINE
Chris Prefontaine is the Chairman and Founder of Smart Real Estate Coach, a four time best selling author, former Forbes Business Council member, and three time Inc. 5000 honoree for fastest growing companies.
Through Smart Real Estate Coach, he has helped students across North America complete hundreds of creative real estate transactions while building scalable businesses. Having navigated the 2008 housing crash, 9/11, COVID, and a near tragic family event, Chris rebuilt his business around strategies designed to thrive in any economic cycle.
Website: smartrealestatecoach.com
Free Book: 3paydaysbooks.com/Mike
LinkedIn: Chris Prefontaine
Instagram: @chrisprefontaine_
Facebook: Chris Prefontaine
Podcast: Smart Real Estate Coach Podcast
YouTube: Smart Real Estate Coach
FAQ — PEOPLE ALSO ASK (USE GUTENBERG FAQ BLOCK IN WORDPRESS)
What is subject-to real estate investing?
Subject-to investing means a buyer takes ownership of a property while the seller’s existing mortgage stays in place. The buyer makes payments on that existing loan rather than getting new financing. This allows buyers to access interest rates from the original loan, which are often far lower than current rates. It requires careful structuring and proper disclosure to all parties, but done correctly it is a legitimate and increasingly popular strategy, especially in higher rate environments.
How does owner financing work in real estate?
In owner financing, the seller acts as the lender. Instead of the buyer obtaining a mortgage from a bank, they make payments directly to the seller under agreed upon terms, including price, interest rate, and length of the loan. This can benefit sellers who want steady income and may receive a price closer to their asking amount, while buyers get terms that do not depend on traditional bank qualification. It is especially useful for properties or buyers that don’t fit conventional lending criteria.
Can real estate agents invest in their own deals?
Yes, and Chris Prefontaine argues most agents are leaving significant opportunity on the table by not doing so. Agents regularly encounter sellers and properties that don’t fit a traditional sale, situations that could become creative financing deals the agent structures and holds themselves. This requires thinking like a principal rather than only a salesperson, but it allows agents to build long-term assets and cash flow in addition to commission income.
What is the three paydays model in real estate?
The three paydays model refers to structuring a deal to generate income at three separate points: cash up front when the deal is structured, ongoing monthly cash flow while the deal is in place, and a backend payday when the property is eventually sold or refinanced. Chris Prefontaine teaches this as an alternative to relying on a single commission check, with the goal of building wealth through structure rather than one time transactions.
Is creative financing legal and viable in today’s market?
Yes. Strategies like owner financing, lease purchases, and subject-to deals are legal when properly structured, documented, and disclosed to all parties involved. Chris Prefontaine notes that these strategies have become increasingly accepted by sellers and agents, particularly because millions of homeowners own properties free and clear and may be open to receiving payments over time rather than a lump sum. As with any real estate strategy, proper legal documentation and disclosure are essential.
What is a lease purchase in real estate?
A lease purchase, sometimes called a rent-to-own arrangement, allows a tenant to rent a property with an agreement to purchase it at a later date, often at a predetermined price. This can help buyers who need time to improve their financial position while giving sellers reliable income and a committed future buyer. Chris Prefontaine emphasizes that proper buyer qualification is critical to making these arrangements work for both parties.
