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Creative Finance for Realtors
Our caring team is ready to help you and your sellers solve the most difficult challenges when it comes to selling their house. Whether they have little to no equity, need a fast sale, or have a physically distressed property our team is here to help. We are looking to build long-term relationships and together we can improve our community one house at a time.
How Can We Help?
We help realtors make deals out of the following listings utilizing creative finance:
Low equity
No equity
Overpriced
Interest rates blocking buyers
Slow/Winter season
Creative Finance Strategies
Subto
In a typical subject-to transaction, the buyer allows one or more mortgages to stay in place and agrees to make those payments on behalf of the seller. The parties acknowledge the due-on-sale clause and sign the additional paperwork to ensure that the deal not only closes, but that it's smooth and successful for years to come.
The property transfers to the buyer, but the mortgage stays in the name of the seller and on the seller's credit report.
Did you know every transaction is some form of subto? Consider all the rights-of-way, water rights, utility easements, etc... every property is ultimately bought subject to those encumbrances.
But isn't subto illegal? Is it illegal to sell a property subject to the mortgage?
Nope. Technically it's a default of the mortgage contract. That means the lender has the option to call the loan due-on-sale (extremely rare), and if the borrower cures the default, the lender must continue/reinstate the mortgage.
We have multiple strategies for handling a due-on-sale, and it doesn't scare us a bit.
Seller Finance / Seller Carry
Sellers either want or have to finance their equity to their buyer, and a promissory note and mortgage are created for the debt.
This can be combined with subto, making it a hybrid where the seller's equity is secured as a 2nd position lien for the Buyer.