Question about buying with creative finance

Question about buying with creative finance

Portland, OR · Member since 2023 · 10 posts · 3 votes

Hello, I am looking into buying my first rental property and i'm exploring different creative options for financing the purchase.  I understand seller carry and assumable loans very well, however I am having a hard time understanding how to buy a house creatively when the seller still has a mortgage on the property. I'm mainly looking into Subject To and Lease options. I still don't understand the structure and how everything works in this kind of creative deal. Anything helps, Thanks!

0Reply
39 views

4 Replies

Jump to latestLatest
  • Michael SmytheBusiness Member
    Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
    2y

    It isn't as easy as the above post makes it sound.

    Typically, an investor isn't doing this with Class A properties or people.

    So, you'll have to deal with nonpayment issues and evictions, and buyers walking away from properties.

    You also don't want to screw the seller who you took over the mortgage for. In many states, that can lead to legal issues.

    Logical Property Management4.9460 Reviews
Join the conversationCreate a free account to reply, vote on answers and follow this thread.