Creative Finance: Flexible Solutions for Real Estate Transactions

Creative finance offers innovative strategies to close deals outside traditional financing. These methods provide unique benefits for buyers and sellers, making real estate transactions more accessible and tailored to specific needs.

Hybrids
A hybrid combines elements of seller financing and a conventional loan. The buyer secures a traditional loan for part of the purchase price while the seller finances the remainder. This approach reduces the buyer’s upfront costs and gives sellers a reliable income stream. It’s a great option when traditional financing alone doesn’t cover the entire purchase.

Wraps
A wraparound mortgage involves the seller maintaining their existing loan while creating a new loan for the buyer that "wraps around" the original. The buyer makes payments to the seller, who uses those funds to pay their original loan. Wraps are ideal for buyers with limited access to conventional loans and sellers seeking consistent cash flow.

Subject-To
In a subject-to deal, the buyer takes over payments on the seller’s existing mortgage while the loan remains in the seller’s name. The buyer gains ownership of the property but benefits from the terms of the seller’s existing loan. Subject-to transactions are a popular choice for buyers seeking favorable loan terms or minimal upfront costs.

Our team specializes in managing these complex transactions, ensuring every detail is handled efficiently. From coordinating inspections and managing timelines to assisting with post-closing tasks, we simplify the process and make creative financing accessible to all parties.