I negotiated a first and second mortgage package, where the buyer took out two loans simultaneously to cover the purchase price. The first mortgage covered 80% of the property value, while the second covered 10%, allowing the buyer to avoid private mortgage insurance. The transaction benefited by reducing the buyer’s monthly payment and initial costs. This structure provided financial flexibility and made homeownership more accessible.
Through a lending relationship, I was able to secure a portfolio loan for my clients. My client was a strong self-employed borrower but did not fit the typical lender's criteria. The lender was fantastic and provided a competitive rate for the loan.
One of the main stumbling blocks for clients today with significant equity in their present home is the fear of loss. They simply do not want to sell their present home until they are assured they have found a suitable replacement. We have a program call buy before you sell. It involves advancing up to 75% of the current home's value minus current debt using a deferred sales agreement. This frees equity to allow the client to be a non contingent buyer with a sizable down payment. Once they have acquired their new home, they then sell the trailing property. The program is not a bridge loan, meets Conventional loan guidelines for disposition of the current residence so that the client qualifies for the new property loan obligation, and costs a one time fee. The added benefit is the client can do repairs, paint and stage the prior home for maximum resale without having the stress of living in the home while it is on the market.
Helping families achieve their real estate dreams is incredibly rewarding. Recently, I assisted a family up-size to a new home much sooner than they expected, by leveraging the equity they had built up in their current property. Initially, they believed that moving to a larger house was years away due to the financial constraints of funding a new deposit, but they had a new born on the way and wanted to browse all available options. By remortgaging their existing home, we were able to release a significant amount of equity. With the increased market value of their property and a substantial portion of their mortgage already paid off, they had ample funds available. The remortgage process was straightforward. We obtained a new valuation of their home, secured a favorable remortgage deal, and freed up the necessary funds. This enabled the family to make a competitive offer on their desired new home without the pressure of selling their current property first. The result was a smooth and expedited transaction, allowing them to settle into their dream home much sooner than anticipated. By unlocking their home’s equity, the family turned their dream of up-sizing into a reality. If you’re in a similar situation, consider remortgaging to release equity—it could be the key to moving into your dream home faster than you think.
Creative financing can be a valuable strategy for investors looking to get favorable terms. Two popular methods of creative financing are "Subject To" and "Seller Financing." Each offers unique advantages and considerations. Subject To Financing What is Subject To Financing? "Subject To" is a financing option where an investor takes over the existing mortgage payments of a property, but the original homeowner's name remains on the mortgage. The property’s title transfers to the investor, which means they gain control and ownership of the property, although the mortgage is not formally assumed. EXAMPLE: Property Value: $300,000 Existing Mortgage Balance: $270,000 Monthly Mortgage Payment: $1,265 Investor Downpayment: $30,000 Agreement Duration: 8 years, after which the investor will refinance with a conventional loan. How it Works: The investor gives a downpayment of $30,000 to the seller and takes over the monthly mortgage payments of $1,265. The title of the property is transferred to the investor, though the mortgage remains under the seller’s name. After 8 years, the investor plans to refinance the property to pay off the original mortgage. Benefits for Investors: Gain property ownership without securing a new mortgage. Potentially less expensive upfront compared to obtaining a new mortgage. What is Seller Financing? Seller financing occurs when the property’s seller finances the purchase directly, acting as the lender. The buyer makes payments to the seller under agreed terms instead of a bank. EXAMPLE: Property Value: $300,000 Down Payment: 10% ($30,000) Loan Amount: $270,000 Interest Rate: 3% Loan Duration: 15 years How it Works: The buyer makes a $30,000 down payment, and the seller finances the remaining $270,000 at a 3% interest rate over 15 years. Monthly payments are around $1,863, directly payable to the seller. The seller retains a lien on the property as security until the loan is fully paid. Benefits for Buyers: More flexible terms than traditional bank mortgages. Potentially lower closing costs and quicker transaction process. Benefits for Sellers: Continuous income stream from interest payments. Potential tax benefits by spreading out income receipt. Both "Subject To" and "Seller Financing" are powerful tools in a real estate investor's arsenal, offering ways to facilitate property transactions that might not be possible through traditional financing routes.
I once secured a purchase contract with a delayed closing to allow the buyer to save additional funds for a down payment. This flexibility enabled the buyer to proceed without immediate financial strain and allowed the seller to plan their move comfortably. The transaction benefited from the mutual agreement, which met both parties' timelines. The extended period ensured a stress-free transition for everyone involved.
Hard money loans are a quick and hassle-free way to snag properties and supercharge your real estate ventures. The flexibility and ease of hard money lending makes seizing opportunities fast and giving investors the edge they need in this fast-moving real estate world.
Seller financing is one of the creative financing techniques I use in a real estate transaction. Under this arrangement, the buyer acquires a loan from the seller. The parties involved benefit from the flexibility since the conditions and interest rates are flexible. This is how the parties benefit from such a transaction: Flexibility: Through the seller financing arrangement, the buyer will be able to bypass a traditional lender. Fast Acquisition: The seller might be willing to extend the loan; this would help buyers with early acquisition due to the seller's financing. Higher Returns: By negotiating with the seller, the buyer will be in a position to get a good interest rate. Less Risk: The buyer will be able to fix his interest and terms of seller financing, hence giving the investment a solid financial footing. More Negotiation Leverage: Since the buyer will have more bargaining power to negotiate directly with the seller, he will be able to demand a better price on the property.
I once closed a subject-to deal where the seller needed extra time to move out. We agreed on a three-month period during which I covered the mortgage payments while starting renovations. This arrangement allowed the seller to transition smoothly and gave me a head start on the rehab. Once the seller moved out, the place was fully renovated, and I flipped it on the MLS for a significant profit. It was a win-win situation, despite the four-month timeline.