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Creative Real Estate Financing
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Updated over 1 year ago, 04/28/2023

User Stats

16
Posts
18
Votes
Connor Lewis
  • Rental Property Investor
  • Lexington, KY
18
Votes |
16
Posts

Interested in Creative Financing Strategies

Connor Lewis
  • Rental Property Investor
  • Lexington, KY
Posted

Hello BP community!

I'm starting to learn about creative financing strategies and it seems like this might be normalized among sellers in the next few decades. I'm primarily interested in subject to deals/seller financing. I'm going to be diving into those in the near future. From those who have done them or are very informed what it comes to putting one together, can you share your experiences? I've heard a lot of the upside when it comes to them, but I'm also interested in some of the potential downsides to a subject to/seller finance deal. I appreciate any and all advice/shared experience. Thanks!

User Stats

13,249
Posts
19,252
Votes
Joe Villeneuve
Pro Member
#4 All Forums Contributor
  • Plymouth, MI
19,252
Votes |
13,249
Posts
Joe Villeneuve
Pro Member
#4 All Forums Contributor
  • Plymouth, MI
Replied

You pay the seller who might be doing this because they can't make the payments and want to avoid a foreclosure.  They are still the one that needs to make the actual payments.  What if they don't?

Account Closed
  • Investor
  • Scottsdale Austin Tuktoyaktuk
4,138
Votes |
4,205
Posts
Account Closed
  • Investor
  • Scottsdale Austin Tuktoyaktuk
Replied
Quote from @Connor Lewis:

Hello BP community!

I'm starting to learn about creative financing strategies and it seems like this might be normalized among sellers in the next few decades. I'm primarily interested in subject to deals/seller financing. I'm going to be diving into those in the near future. From those who have done them or are very informed what it comes to putting one together, can you share your experiences? I've heard a lot of the upside when it comes to them, but I'm also interested in some of the potential downsides to a subject to/seller finance deal. I appreciate any and all advice/shared experience. Thanks!

Here's a post I did on Subject To that may help

Using Subject To, to Get "Free" Properties

https://www.biggerpockets.com/forums/311/topics/1060320-using-subject-to-to-get-free-properties-a-quick-guideline

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User Stats

83
Posts
68
Votes
Yael Lederman
  • Miami, FL
68
Votes |
83
Posts
Yael Lederman
  • Miami, FL
Replied

Here's a resource I like on seller financing: https://retipster.com/mortgage...

User Stats

9,861
Posts
5,545
Votes
Eliott Elias#5 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
  • Investor
  • Austin, TX
5,545
Votes |
9,861
Posts
Eliott Elias#5 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
  • Investor
  • Austin, TX
Replied

You want to target one of two things, ideally both. 1. cash flow 2. equity. The biggest risk is the due on sale clause with subto.