• Pace Morby

How to Get Funds For A Creative Financing Deal

Let’s be honest, not every deal you find in the real estate market is going to be golden.


Even after you do your comps, understand the property and value something as an asset, a lot of success in real estate investing is going to come from your ability to negotiate terms.


We want to work with our sellers to make sure that every deal we take is a win for every party involved. That may include:

  • Real estate agent’s making their commission.

  • Sellers making the amount of money they were hoping for and getting out of an annoying or painful situation.

  • Buyers gaining possession of assets at an acceptable price that allows them to scale and invest.

  • Closing agents making their assignments and verifying all paperwork so everything is above PAR.


I’ve been investing for years and although every deal I go for I strive for 0% interest and no money down, that’s not the exact reality every time.


This is what I do to negotiate with sellers and get the funds needed to the closing table.


Negotiating a real estate deal


We always try to make sure that everyone is happy with the terms of an investment.


Especially if you’re approaching sellers who may not have heard about subject to or seller financing deals in the past, they try to understand how it works in terms of what they already know.


That means they may ask you for what the bank thinks their house is worth and interest that the bank would charge. The point of creative financing is establishing your own terms that work better for everyone.


If you approach a conversation telling a seller that they get no down payment and make 0% interest on a property they’re giving to you, it doesn’t sound very appealing. I know I wouldn’t take a deal like that.


My tactic here is to show the seller instead of a lot of interest over time, I’m willing to raise the final price of the property so they make the kind of money they would have made on interest any way, but no one has to track a complicated formula for interest.


The point is they make more money period. Who doesn’t want a steady stream of income that secures your exit out of something you want to be out of anyway.


That’s just one tactic and still, sometimes they want more money. If you want the deal then you may need to secure funds.


How to get the funds to close a negotiation


The easiest way for SubTo members to secure funding for the deals they’re closing – like how to raise money for closing costs or a negotiated down payment – is to find a private lender.


If you wanted to pay the cost of interest a bank would give you on a loan, why wouldn’t you just get a mortgage anyway? Private lenders let you negotiate terms on loans, too. You don’t have to abide by the Fed that regulates banks; you can pay 1% or 2% if that’s a deal for you and your lender.





Everyone makes money, you get a property and your seller is happy with the money coming in.


Now, I help SubTo members learn how to negotiate with sellers and we do live calls with sellers for on the spot learning and closing deals all the time.


We also learn other ways of funding deals, but that’s just a perk that comes with when you join our community.