• Pace Morby

Do sellers assume all the risk of selling their home through owner financing

Buying homes the traditional way is going to end up with your eviction.


Let me tell you what I mean.


Seeing how interest rates have done nothing but climb recently, anyone who might have been able to hop on the train of buying a house might be out of the game now. There are some lucky people who were being pushed out of the homebuying game when it was super competitive and still have down payments high enough to partially balance out interest rates.


But for the majority of people looking to get into a home now – or if younger home buyers are looking to get into a home now – buying a home the traditional way is not an option.


They also don’t have the cash to buy a home outright. So, they may turn to creative financing options like subject to - or as I like to call it, Subto - contracts, novation agreements, or owner financing.


I advocate for these kinds of sales in any market because not only are they better for buyers, but sellers also make more money off the deals.


If creative financing is better for everyone, then why doesn’t everyone do it?


Honestly, I think fewer people do seller financing – otherwise called owner financing – because they don’t understand what they are going to gain from it.


Most people don’t sell their home through owner financing because they either think you have to have the whole house paid off to the bank first, or because they think they’ll gain more through a traditional mortgage.


If I were trying to buy your house that you own outright, and I was offering the same amount of money as a different seller, it probably wouldn’t matter to you where your money came from.


You get your money either way.


Now, in this same scenario, if I approach you with $200k more, but you would get gradual payments instead of a lump sum, you’re more likely to take my deal.


Why’s that?


Because you have more to gain from taking my deal than if you didn’t.


Plus, sellers often think they assume all the risk of the sale if they sell through owner financing, but that’s also not true.


I go over some of the risks in home buying in general – whether through a bank or some other way – in this video.





Now, do you assume more risk by having someone pay off a debt you have, or by being stuck in a property you don’t want or can’t afford?


Like I said, it’s all about pain versus gain.


What could you gain if you understood creative financing the way the SubTo community does? You could be making a whole lot more money and retain a lot more assets with fewer risks.


And all you have to do to learn if creative financing could benefit and change your life is figuring out how it works by joining SubTo.