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How Sellers Win with Creative Financing Real Estate

The more I talk about creative financing, subject to, or seller finance, the more I hear a big misconception, that I’m taking advantage of the seller.

Creative financing, while not new, isn’t something that a lot of people understand; this is true not only for sellers, but a lot of real estate agents as well.

Guys, here’s the thing that people often miss about this…

Everyone wins in creative finance.


Check out my one-on-one conversation with one of my Subto students below:

How Sellers Win in Creative Financing

Whether I’m a wholesaler or a fix and flipper, here’s the reality of the situation – in order for me to win, the seller has to lose.

A seller has to sell their home for between 50-60% of the value of that property and in a lot of cases, there’s no financial benefit for them.

There are of course any number of personal benefits for selling and there’s a lot of reasons why a person might have to sell their home.

In these types of scenarios, the seller is able to get the time and convenience they need; meanwhile, I’m the only one who actually benefits financially in these deals.

However, with creative finance, I can structure a deal where the seller can actually make more money.

Here’s a great example of this:

A seller that I worked with bought a property with a VA loan with her husband over the summer.

Tragically, they both caught COVID-19 and her husband died a month after they bought the property.

Because her husband was the primary breadwinner and he had been several years before retirement, she wasn’t able to get his pension.

And she now owes the full retail price and then some on the property she just bought, without the benefit of ongoing income.

And this isn’t an isolated case.

These types of situations happen all the time for sellers and the problem with a lot of real estate agents is that they try to put their brains into the seller’s head.

What do I mean by that?

I mean that an agent or even someone who has sold a house before will immediately ask why didn’t the seller just rent out their house?

Because a lot of sellers don’t think the way a real estate agent, a wholesaler, or a fix and flipper thinks.

They’re more worried about what they will do now that they’ll be selling their home.

Guys, never ever put your brain in the seller’s head!

Let’s go back to my earlier example – this poor lady had to move into her son’s home after the death of her husband.

Do you really think she’s thinking about renting out the house for some extra cash?

When I became aware of this deal, I bought her house subject to, helped her move into her son’s home, and gave her the money she needed to keep afloat.

Now a realtor would say that I lost money because I overpaid on this house, however I didn’t use any of my own money and no one asked for my credentials.

The payment on the house is $1800 and I’m renting it out for $2800.

This house was in danger of being foreclosed and the seller was already a month behind.

By using creative financing, she was able to sell the home, move into a new one, and was able to make money instead of losing it through closing costs, realtor costs, etc.

How exactly did I take advantage?

The end result for many of the sellers I work with and many of the sellers my students work with is that they get the money they need, without paying any extra costs.

And at the end of the day, we’re able to help someone out of a situation they don’t want to be in.

Now that’s what I call a win win situation.

If you’re ready to get started doing real estate deals, then don’t wait. Come join us at Subto!


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