Seller financing for a free and clear house

[Tikii Williams]

Question to my BP colleagues. I have a seller that want market price for his home. The home is completely paid for, and the only rehab that needed is interior paint and new carpet. I'm trying to structure a deal, and the only thing I can come up with is a subto or seller financing. Is that possible if the house is free and clear? 

[Roy N.]

@Tikii Williams

If the vendor owns the house free and clear, there is nothing to "sub to", so that is not an option.

Vender financing is an option, but you need to be solving a problem for the Vendor - if the house were very run down, the market not moving at all, or it is more important for the vendor to maximize their return than to have the funds all at once.

Even when you identify a problem to be solved, there is typically a large educational component to demonstrate to the Vender they will make more money and, potentially pay less tax, if they carry a mortgage on the house.