How do we Finance our deals?

What is a Creative Financing?

A typical Real Estate transaction looks like this: 1. Buyer makes offer on property. 2. Seller accepts offer. 3. Buyer gets loan from bank. 4. Closing Agent arranges everything and completes paperwork. 5. At closing, seller gets paid (or their current mortgage is paid off), the buyer receives a Deed of Trust and a Mortgage (which makes the property "collateral" for the loan and gives the bank the right to foreclose if payments stop. 6. The buyer then takes possession of the property and starts making mortgage payments to the lender. And then keeps on making payments until the loan is paid-off.

90% of the time, that system works fine. However, there may be some conditions in which a bank or financial institution might not want to lend on a particular property. Some examples include:

Conventional Loans, like FHA loans, VA loans, etc. will require a property to Appraise at a certain value before lending on it. It must be habitable and not require any significant repairs. This would disqualify 99% of the properties we seek to purchase.
As a Buyer, you might be in a situation where your credit is "less than attractive" to a lender. This can be true even if you have a high score, and NEVER have late payments. Common causes include carrying too much debt (DTI). In these cases, a Borrower would not be able to get a loan for a property.
In many cases, a Real Estate Investor may want to purchase a property in a method which preserves their cash, so it can be used to repair the property or on other projects.

So in these cases, what is a Buyer that wants to buy a property, and a Seller that wants to sell it to them, to do. The answer is that they have to think out of the box and use some Creative Financing techniques to make the transaction happen.

Creative Financing in real estate refers to ways an individual can purchase land or properties that are for sale other than the traditional Lender involved method. Albeit not the norm, these methods are far from illegal or shady, and are used every day by investors everywhere.

It works in both up & down markets, and is particularly attractive when interest rates are on the rise.
It is very flexible. Several methods can be combined to forge a deal that is advantageous to the Buyer & Seller.
It is less risky. The property is the collateral and you don't have to sign Personal Guarantees or risk your assets or Credit.
It is more relationship based. A relationship and partnership is formed.

It is fast. By not having to undergo Bank underwriting and qualification, the process is shortened by weeks, and a deal could literally take a day or two from start to close.
It has no supply limit. There is no arbitrary number of loans you can have in your name, nor Debt-to-income concerns.
All terms in a Creative Finance Deal are negotiable. Try getting the bank to change terms.

Why would someone use creative financing options?

We employ Creative Financing in our business. When we do, the objective is the same as when we employ traditional financing, to acquire a distressed property that an owner wishes to be rid of, in as quick and mutually beneficial method as possible.

Our philosophy when employing Creative strategies is to get the Buyer the outcome they are seeking (sales price, short closing time, avoid foreclosure, etc.) in exchange for the Terms we need (Rate, payment, length of deal, etc.) to make the deal work.

These deals are more common with off-market sales, but they absolutely will work with on-market properties (i.e., listed by a realtor on the MLS). We work with agents all the time to educate and understand some of these non-traditional methods. The biggest difference in calculating the deal is that now the commission (or finder's fee) will be taken into account.

If you are interested in selling a property by one of these methods, please contact us and speak to an Acquisitions representative for more information. If your property or situation appears to be a good fit for one of these methods, we look forward to working with you to solve your problem and get your property sold.

Creative Financing Deal Types

Seller financing, also known as owner financing, is a real estate transaction in which the property seller acts as the lender rather than the buyer obtaining a traditional mortgage from a bank. Instead of receiving the full purchase price at closing, the seller allows the buyer to make payments over time according to mutually agreed-upon terms, including the interest rate, payment schedule, and loan duration.

Seller financing can provide an alternative path to homeownership or property acquisition when conventional financing is unavailable, difficult to obtain, or undesirable for either party. These arrangements can offer flexibility in structuring the transaction and may help facilitate a sale by expanding the pool of potential buyers. However, both parties should carefully evaluate the legal, financial, and tax implications before entering into a seller-financed agreement and should seek professional legal and financial advice when appropriate.

Advantages of Seller Financing

Expands the pool of potential buyers who may not qualify for conventional financing.
Can result in a faster sale and reduced time on the market.
Allows flexible negotiation of loan terms, interest rates, and repayment schedules.
May provide the seller with a steady stream of income through monthly payments.
Can reduce or eliminate certain lender-related closing requirements and delays.
May allow the seller to defer capital gains taxes over multiple years, depending on tax circumstances.
Buyers may face fewer qualification requirements than with traditional lenders.

Disadvantages of Seller Financing

The seller assumes the risk of buyer default and potential foreclosure proceedings.
The seller does not receive the full purchase price at closing.
Ongoing loan servicing and payment tracking may be required.
Existing mortgages may contain due-on-sale clauses that could create complications.
The seller's capital remains tied up in the property rather than being available for other investments.
Buyers may face higher interest rates or larger down payment requirements than conventional financing.
Legal documentation and compliance requirements can be complex and require professional assistance.

If this method seems like something you'd wish to explore in order to get your property sold, quickly and fairly, click here and submit your information.

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A seller second mortgage is a financing arrangement in which the property seller provides a secondary loan to the buyer while the buyer obtains a primary mortgage from a traditional lender. In this structure, the first mortgage lender holds the primary lien position on the property, and the seller's loan is secured by a second lien. The seller-financed portion often helps bridge the gap between the buyer's available cash, down payment, and the total purchase price.

Seller second mortgages can make transactions possible when a buyer cannot meet the down payment requirements or financing limitations of a conventional lender. The terms of the second mortgage, including the interest rate, payment schedule, maturity date, and repayment structure, are negotiated between the buyer and seller. Because the seller's loan is subordinate to the primary lender's mortgage, the seller assumes additional risk in exchange for facilitating the sale.

Advantages of a Seller Second Mortgage

Helps buyers purchase a property with less cash required at closing.
Can bridge financing gaps that might otherwise prevent a transaction from occurring.
Expands the pool of qualified buyers for the seller.
Allows sellers to potentially earn interest income on the financed balance.
May enable sellers to achieve a higher sale price by offering flexible financing options.
Can facilitate faster transactions when buyers have difficulty securing sufficient conventional financing.
Provides flexibility in structuring repayment terms to meet the needs of both parties.

Disadvantages of a Seller Second Mortgage

The seller assumes greater risk because the second mortgage is subordinate to the primary lender's lien.
In the event of foreclosure, the first mortgage lender is paid before the seller receives any proceeds.
The seller does not receive the entire purchase price at closing.
Many primary lenders have restrictions regarding secondary financing that must be carefully reviewed.
Additional legal documentation and compliance requirements may increase transaction complexity.
The buyer carries multiple loan obligations, increasing overall debt service requirements.
Default by the buyer can result in collection costs, legal expenses, and potential loss of the seller-financed balance.

If this method seems like something you'd wish to explore in order to get your property sold, quickly and fairly, click here and submit your information.

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Subject-to financing, commonly referred to as a "subject-to" transaction, is a real estate acquisition strategy in which a buyer takes ownership of a property while the seller's existing mortgage remains in place. Rather than obtaining a new loan or formally assuming the existing mortgage, the buyer acquires title to the property and agrees to make the payments on the seller's existing loan. The mortgage remains in the seller's name, but the buyer becomes responsible for maintaining the payments according to the terms of the existing loan.

Subject-to transactions can be attractive when the existing mortgage has favorable terms, such as a low interest rate, low monthly payment, or minimal loan balance. These arrangements may allow buyers to acquire properties with less cash and fewer financing hurdles than traditional purchases. However, subject-to transactions carry unique legal and financial risks, including the possibility that the lender could invoke a due-on-sale clause requiring the loan balance to be paid in full. Because of these complexities, both parties should seek qualified legal and financial guidance before entering into a subject-to agreement.

Advantages of Subject-To Financing

Allows buyers to benefit from an existing mortgage with potentially favorable interest rates and terms.
May require significantly less cash than obtaining a new conventional loan.
Can facilitate a faster closing with fewer lender-related delays.
May help sellers dispose of properties that are difficult to sell through traditional methods.
Can provide solutions for sellers facing financial hardship, relocation, or time-sensitive situations.
Buyers may avoid some of the qualification requirements associated with traditional mortgage financing.
Creates opportunities for investors to acquire properties while preserving existing financing.

Disadvantages of Subject-To Financing

Most mortgages contain a due-on-sale clause that may allow the lender to demand full repayment upon transfer of ownership.
The existing mortgage remains in the seller's name, potentially affecting the seller's credit and borrowing capacity.
If the buyer fails to make payments, the seller's credit may be negatively impacted.
Insurance, escrow, and servicing arrangements may require careful coordination.
Some lenders may object to the transfer if it becomes known.
Legal and documentation requirements can be more complex than traditional purchases.
Both parties may face financial and legal risks if the transaction is not properly structured and documented.

If this method seems like something you'd wish to explore in order to get your property sold, quickly and fairly, click here and submit your information.

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A novation agreement is a legal arrangement that substitutes one party in an existing contract with a new party while preserving the original contract's terms and obligations. In real estate investing, novation agreements are commonly used when an investor enters into a purchase agreement with a property owner and then later transfers their contractual rights and obligations to another buyer with the seller's consent. Unlike a simple assignment, a novation creates a new contractual relationship among the parties and releases the original party from future obligations under the contract.

Novation agreements can be particularly useful when a property requires repairs, marketing, or other value-enhancing efforts before being sold to an end buyer. They may allow investors to facilitate transactions without taking title to the property while providing flexibility for sellers and buyers. Because novations involve the replacement of contractual parties and legal obligations, properly drafted agreements and legal review are essential to ensure compliance with applicable laws and regulations.

Advantages of Novation Agreements

Allows a transaction to proceed without the investor necessarily taking ownership of the property.
Can provide flexibility for investors seeking to market properties to end buyers.
May create opportunities to increase a property's marketability before resale.
The seller remains directly involved in the final sale transaction.
Can be useful when traditional assignments are restricted or less desirable.
May reduce certain holding costs associated with acquiring and reselling a property.
Provides a clear legal framework for transferring contractual obligations with all parties' consent.

Disadvantages of Novation Agreements

Requires the consent and cooperation of all parties involved.
Legal documentation can be more complex than a standard assignment agreement.
Improperly structured agreements may create regulatory or licensing concerns in some jurisdictions.
The investor may incur marketing, repair, or administrative costs without a guaranteed sale.
Transactions may take longer to complete due to additional negotiations and documentation requirements.
Buyers, sellers, and title companies may be unfamiliar with the structure, requiring additional explanation and coordination.
Professional legal review is often necessary to ensure compliance with state laws and contractual requirements.

If this method seems like something you'd wish to explore in order to get your property sold, quickly and fairly, click here and submit your information.

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A loan assumption is a real estate transaction in which a buyer takes over the seller's existing mortgage and becomes responsible for making the remaining loan payments under the original terms of the loan. Unlike obtaining a new mortgage, the buyer assumes the existing loan balance, interest rate, repayment schedule, and other loan provisions, subject to the lender's approval when required. Upon completion of a qualified assumption, the lender may release the seller from future liability, depending on the terms of the assumption agreement.

Loan assumptions can be particularly attractive when the existing mortgage carries an interest rate that is lower than current market rates. This financing strategy may reduce borrowing costs for the buyer while helping the seller market the property more effectively. However, not all mortgages are assumable, and lender approval, qualification requirements, assumption fees, and other conditions may apply. Buyers and sellers should carefully review the loan terms and consult legal and financial professionals before pursuing a loan assumption.

Advantages of Loan Assumption

Allows buyers to benefit from an existing mortgage with potentially below-market interest rates.
May reduce monthly mortgage payments compared to obtaining new financing.
Can lower certain closing costs associated with originating a new loan.
May simplify the financing process when the lender permits assumptions.
Can make a property more attractive to potential buyers.
Allows buyers to preserve favorable loan terms that may no longer be available in the current market.
May result in faster loan processing compared to obtaining a completely new mortgage.

Disadvantages of Loan Assumption

Not all mortgage loans are assumable.
Most lenders require the buyer to qualify financially before approving the assumption.
The buyer must typically provide cash or secondary financing to cover the difference between the purchase price and the remaining loan balance.
Assumption fees and lender requirements may increase transaction costs.
The approval process can be time-consuming depending on the lender.
Some sellers may remain liable for the loan if a formal release of liability is not obtained.
Existing loan terms may include provisions that are less favorable than current financing alternatives in certain situations.

If this method seems like something you'd wish to explore in order to get your property sold, quickly and fairly, click here and submit your information.

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A lease option, also known as a rent-to-own agreement, is a real estate arrangement that combines a standard lease with an option for the tenant to purchase the property at a predetermined price within a specified period. The tenant (optionee) pays the property owner (optionor) an option fee for the right, but not the obligation, to buy the property in the future. During the lease term, the tenant typically occupies the property and pays monthly rent, with a portion of that rent sometimes credited toward the future purchase price.

Lease options are often used as a creative financing strategy to help buyers who may not currently qualify for traditional financing but intend to purchase the property in the future. They can also benefit sellers by generating rental income while securing a potential future sale at an agreed-upon price. The terms of the agreement, including purchase price, option period, rent credits, and maintenance responsibilities, are fully negotiable and must be clearly documented in the contract.

Advantages of a Lease Option

Allows buyers to control a property with less upfront capital than a traditional purchase.
Provides time for buyers to improve credit or financial standing before obtaining financing.
Locks in a future purchase price, which may benefit buyers in rising markets.
Generates rental income for sellers during the lease period.
Expands the pool of potential buyers for sellers.
Can include rent credits that contribute toward the purchase price.
Offers flexibility for both parties to structure mutually beneficial terms.

Disadvantages of a Lease Option

Buyer may lose the option fee if they do not exercise the purchase option.
Purchase price is fixed, which may disadvantage buyers if market values decline.
Sellers may be locked into a price below future market value in rising markets.
Maintenance and repair responsibilities can become a point of dispute if not clearly defined.
Financing is not guaranteed at the end of the lease term.
Legal complexity requires clear contract drafting to avoid misunderstandings.
If the buyer fails to exercise the option, the seller must relist or re-market the property.

If this method seems like something you'd wish to explore in order to get your property sold, quickly and fairly, click here and submit your information.

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Private lending refers to real estate financing provided by individuals or private entities rather than traditional institutional lenders such as banks or credit unions. Private lenders can include individual investors, family offices, real estate investment groups, or specialized private lending companies. These loans are typically secured by real estate and are structured based on the agreement between the borrower and lender, allowing for greater flexibility in terms, underwriting standards, and closing timelines compared to conventional financing.

Private lending is commonly used by real estate investors for fix-and-flip projects, bridge financing, or acquisitions where speed and flexibility are critical. Loan terms may include higher interest rates, shorter durations, and customized repayment structures such as interest-only payments or balloon payments. Because private loans are primarily asset-based rather than income-based, they place greater emphasis on the value and equity of the property rather than the borrower’s credit profile.

Advantages of Private Lending

Faster approval and closing timelines compared to traditional bank loans.
More flexible underwriting criteria, often focused on property value rather than credit score.
Can be used for distressed properties or non-traditional investment scenarios.
Allows financing for fix-and-flip or short-term investment strategies.
Negotiable loan terms, including interest rate, duration, and repayment structure.
Useful for borrowers who may not qualify for conventional financing.
Can provide bridge financing between acquisition and long-term funding.

Disadvantages of Private Lending

Typically higher interest rates and fees than conventional mortgages.
Shorter loan terms, often requiring refinancing or sale upon maturity.
Larger down payments or equity requirements may be required.
Less regulatory protection compared to institutional lending.
Risk of default can lead to faster foreclosure or asset recovery by the lender.
Loan terms can vary widely, requiring careful review of agreements.
May increase overall project costs and reduce profit margins on investment deals.

If this method seems like something you'd wish to explore in order to get your property sold, quickly and fairly, click here and submit your information.

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An FHA 203(k) rehab loan is a government-backed mortgage program that allows homebuyers and homeowners to finance both the purchase (or refinance) of a property and the cost of its renovation or repairs within a single loan. Insured by the Federal Housing Administration (FHA), the 203(k) program is designed to encourage the rehabilitation of older or distressed properties by making it easier to fund necessary improvements that may otherwise prevent a traditional mortgage approval.

There are two primary types of FHA 203(k) loans: the Limited (or Streamline) 203(k), which covers non-structural repairs and smaller renovation projects, and the Standard 203(k), which can include major structural repairs and larger-scale rehabilitation work. Loan funds are typically disbursed in draws as renovation milestones are completed, with oversight from lenders and FHA-approved consultants in many cases. This structure makes the program especially useful for investors and homeowners looking to add value to properties in need of repair while using a single, long-term financing solution.

Advantages of an FHA 203(k) Rehab Loan

Combines purchase (or refinance) and renovation costs into a single mortgage.
Requires a lower down payment compared to many conventional rehab financing options.
Backed by the FHA, making it more accessible to borrowers with lower credit scores.
Can be used to finance significant improvements, including structural repairs (Standard 203(k)).
Expands property options by allowing buyers to purchase fixer-uppers that may not qualify for traditional financing.
Renovation funds are disbursed in controlled draws, helping ensure project oversight.
Can increase property value through financed improvements.

Disadvantages of an FHA 203(k) Rehab Loan

Requires additional paperwork, inspections, and lender oversight compared to conventional loans.
Renovation timelines and contractor requirements can be strict and heavily regulated.
FHA mortgage insurance premiums increase the overall cost of the loan.
Limited contractor flexibility in some cases due to lender approval requirements.
Longer closing timelines due to the added complexity of renovation approval.
Borrowers must meet FHA qualification standards, including property eligibility rules.
Funds are disbursed in stages, which may impact contractor scheduling and cash flow.

If this method seems like something you'd wish to explore in order to get your property sold, quickly and fairly, click here and submit your information.

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A short sale is a real estate transaction in which a property is sold for less than the outstanding balance owed on the mortgage, with the lender’s approval. In this situation, the seller is typically experiencing financial hardship and is unable to continue making mortgage payments or sell the property for enough to fully satisfy the loan. The lender agrees to accept the reduced payoff amount as full or partial satisfaction of the debt, often to avoid the longer and more costly foreclosure process.

Short sales are commonly used as an alternative to foreclosure and require lender involvement throughout the transaction. The process can be lengthy because the lender must review the seller’s financial situation, evaluate the proposed sale price, and approve the final terms. Buyers interested in short sales often benefit from purchasing properties below market value, but they must also be prepared for potential delays and uncertainty during the approval process.

Advantages of a Short Sale

Allows sellers to avoid foreclosure, which may have a more severe impact on credit.
May reduce the overall financial damage compared to a completed foreclosure.
Buyers may acquire properties below market value.
Can present opportunities for investors seeking discounted acquisitions.
May be less disruptive than foreclosure for occupants of the property.
Helps lenders avoid the time and expense associated with foreclosure proceedings.
Can facilitate a negotiated resolution between borrower and lender.

If this method seems like something you'd wish to explore in order to get your property sold, quickly and fairly, click here and submit your information.

Disadvantages of a Short Sale

Requires lender approval, which can be slow and uncertain.
The process can take several months or longer to complete.
Sellers may still face credit damage, though typically less than foreclosure.
Lenders are not obligated to accept a short sale offer.
Properties are often sold “as-is,” with limited or no repairs.
Buyers may encounter competition from other investors and purchasers.
Additional documentation and negotiation are often required throughout the process.

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A contract for deed, also known as a land contract or installment sale agreement, is a real estate financing arrangement in which the seller finances the purchase of the property directly for the buyer. Under this structure, the seller retains legal title to the property while the buyer takes possession and makes installment payments over time. Once the buyer fulfills all payment obligations under the contract, legal title is transferred from the seller to the buyer.

Contract for deed arrangements are often used when buyers are unable to qualify for traditional mortgage financing. They can provide a pathway to homeownership or property acquisition with more flexible qualification requirements. However, because the seller retains title until the contract is fully paid, these agreements require careful drafting and clear terms regarding payment schedules, maintenance responsibilities, default provisions, and transfer of ownership.

Advantages of Contract for Deed

Allows buyers to acquire property without traditional mortgage financing.
May require less stringent credit or income qualifications.
Provides a structured path to ownership through installment payments.
Can enable sellers to earn steady income over time from financed sales.
May facilitate faster transactions compared to conventional lending processes.
Offers flexible terms negotiated directly between buyer and seller.
Expands opportunities for buyers who may not qualify for bank financing.

Disadvantages of Contract for Deed

Seller retains legal title until the contract is fully paid, limiting buyer ownership rights.
Buyer may lose all equity built if they default on payments.
Limited legal protections for buyers in some jurisdictions compared to traditional mortgages.
Seller assumes risk of buyer default and potential eviction or repossession processes.
Property maintenance and tax responsibilities must be clearly defined to avoid disputes.
Financing structure can be complex and requires strong legal documentation.
Some contracts may include unfavorable terms if not carefully negotiated or reviewed.

If this method seems like something you'd wish to explore in order to get your property sold, quickly and fairly, click here and submit your information.

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Real estate crowdfunding is a financing method in which multiple investors pool capital together—typically through an online platform or syndication structure—to fund real estate acquisitions, developments, or investment projects. Instead of relying on a single lender or investor, crowdfunding allows a sponsor or operator to raise smaller amounts of capital from many participants to collectively finance a larger transaction. Investors usually receive a proportional share of income, appreciation, or profits based on their contribution and the structure of the deal.

In real estate investing, crowdfunding is often used for residential developments, multifamily properties, fix-and-flip projects, or commercial assets. The structure may be equity-based, where investors own a share of the property, or debt-based, where investors act as lenders receiving fixed returns. While crowdfunding can provide access to real estate opportunities with relatively low minimum investments, it also requires careful due diligence on the sponsor, project, and platform, as risk levels and returns can vary significantly.

Advantages of Real Estate Crowdfunding

Allows investors to participate in real estate projects with relatively low capital requirements.
Provides access to diversified real estate opportunities across markets and property types.
Enables passive investing without direct property management responsibilities.
Can offer attractive returns depending on the structure and performance of the project.
Expands access to institutional-quality deals that may otherwise be unavailable to individual investors.
Offers flexibility in choosing between debt-based or equity-based investments.
Allows developers and sponsors to raise capital more efficiently from multiple investors.

Disadvantages of Real Estate Crowdfunding

Investments are often illiquid, with limited ability to exit before project completion.
Returns are not guaranteed and depend heavily on project performance.
Higher risk due to reliance on sponsor experience and execution.
Platform or sponsor failure can result in partial or total loss of capital.
Fees and profit-sharing structures can reduce net investor returns.
Limited control or decision-making authority for passive investors.
Regulatory and disclosure standards vary depending on structure and platform.

If this method seems like something you'd wish to explore in order to get your property sold, quickly and fairly, click here and submit your information.

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An equity partnership in real estate is a collaborative investment structure in which two or more parties share ownership of a property and participate in its financial outcomes, including profits, appreciation, and sometimes losses. Unlike a traditional lender-borrower relationship, an equity partnership involves shared ownership rights, with each partner contributing value in the form of capital, expertise, deal sourcing, management, or operational support. The specific ownership percentages and responsibilities are defined in a partnership or operating agreement.

Equity partnerships are commonly used in real estate investing to combine resources and scale acquisitions that may not be achievable individually. One partner may provide the majority of the capital, while another contributes deal flow, renovation management, or property operations. These structures can be flexible and highly customizable, but they require clear agreements to define roles, decision-making authority, profit distribution, and exit strategies to avoid disputes.

Advantages of Equity Partnership

Allows investors to participate in larger or more expensive deals than they could individually.
Combines complementary skills such as capital, construction expertise, and management experience.
Reduces individual financial burden by sharing equity contributions and risk.
Can accelerate portfolio growth through pooled resources.
Offers flexibility in structuring ownership and profit-sharing arrangements.
May provide access to experienced partners or strategic relationships.
Can improve deal execution through division of responsibilities.

Disadvantages of Equity Partnership

Requires clear agreements; disputes can arise without well-defined roles and expectations.
Profits must be shared, reducing individual returns compared to solo investing.
Decision-making authority may be limited or require consensus.
Partners may have differing investment goals, timelines, or risk tolerances.
Exit strategies can be complex if one partner wants to sell or restructure ownership.
Poor partner performance can negatively impact the entire investment.
Legal and administrative setup can be more complex than single-owner investments.

If this method seems like something you'd wish to explore in order to get your property sold, quickly and fairly, click here and submit your information.

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A wraparound mortgage, commonly referred to as a “wrap,” is a form of seller financing in which the seller creates a new loan that includes the remaining balance of their existing mortgage plus additional financing. The buyer makes one combined payment to the seller, and the seller continues to pay the underlying original mortgage while keeping the difference as profit or spread. The original loan remains in place, and the new “wrapped” loan is subordinate to it.

Wrap financing is often used when the existing mortgage has a favorable interest rate or when a buyer cannot qualify for traditional financing. It allows for creative structuring of deals but requires careful attention to loan agreements, particularly due-on-sale clauses and lender restrictions.

Advantages of Wraparound Mortgage

Allows buyers to acquire property without new bank financing.
Can leverage low existing interest rates for favorable terms.
Provides sellers with potential interest rate spread income.
Can facilitate faster and more flexible closings.
Expands the pool of qualified buyers.
May reduce closing costs compared to traditional financing.
Useful in creative or distressed sale situations.

Disadvantages of Wraparound Mortgage

Due-on-sale clauses in the underlying mortgage may create legal risk.
Seller remains responsible for the original loan even after selling.
Requires high trust and proper servicing structure.
Complex documentation and legal structuring required.
Default risk affects both underlying and wrap positions.
Not all lenders permit or tolerate wrap structures.
Can create confusion over lien priority and payment handling.

If this method seems like something you'd wish to explore in order to get your property sold, quickly and fairly, click here and submit your information.

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Hard money loans are short-term, asset-based loans typically provided by private lending companies or individuals. These loans are secured primarily by the value of the real estate rather than the borrower’s creditworthiness or income. They are commonly used in fix-and-flip projects, distressed property acquisitions, and situations requiring fast access to capital.

Hard money loans generally have higher interest rates and shorter repayment periods than conventional mortgages. They are designed for speed and flexibility, allowing investors to close quickly on opportunities that may not qualify for traditional financing.

Advantages of Hard Money Loans

Fast approval and funding timelines.
Based primarily on property value, not credit score or income.
Ideal for fix-and-flip and distressed properties.
Flexible underwriting compared to banks.
Useful for time-sensitive acquisitions.
Can finance properties that are not habitable or bankable.
Often easier to qualify for than traditional loans.

Disadvantages of Hard Money Loans

Higher interest rates and fees.
Short repayment terms, often requiring refinancing or resale.
Larger down payment or equity requirements.
Increased pressure to complete projects quickly.
Risk of default and foreclosure if project fails.
Higher overall cost of capital.
Less regulatory protection than conventional loans.

If this method seems like something you'd wish to explore in order to get your property sold, quickly and fairly, click here and submit your information.

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How do we Finance our deals?

What is a Creative Financing?

Why would someone use creative financing options?

Creative Financing Deal Types

If this method seems like something you'd wish to explore in order to get your property sold, quickly and fairly, click here and submit your information.

If this method seems like something you'd wish to explore in order to get your property sold, quickly and fairly, click here and submit your information.

If this method seems like something you'd wish to explore in order to get your property sold, quickly and fairly, click here and submit your information.

If this method seems like something you'd wish to explore in order to get your property sold, quickly and fairly, click here and submit your information.

If this method seems like something you'd wish to explore in order to get your property sold, quickly and fairly, click here and submit your information.

If this method seems like something you'd wish to explore in order to get your property sold, quickly and fairly, click here and submit your information.

If this method seems like something you'd wish to explore in order to get your property sold, quickly and fairly, click here and submit your information.

If this method seems like something you'd wish to explore in order to get your property sold, quickly and fairly, click here and submit your information.

If this method seems like something you'd wish to explore in order to get your property sold, quickly and fairly, click here and submit your information.

If this method seems like something you'd wish to explore in order to get your property sold, quickly and fairly, click here and submit your information.

If this method seems like something you'd wish to explore in order to get your property sold, quickly and fairly, click here and submit your information.

If this method seems like something you'd wish to explore in order to get your property sold, quickly and fairly, click here and submit your information.

If this method seems like something you'd wish to explore in order to get your property sold, quickly and fairly, click here and submit your information.

If this method seems like something you'd wish to explore in order to get your property sold, quickly and fairly, click here and submit your information.

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