Creative Financing Thoughts

[Ken M.]

Be aware - Subject To is creative financing

Land Contracts are creative financing

Lease Options are creative financing

Wraps are creative financing

Owner Financing is creative financing

However "Subject To" is Not "Land Contract" which is not "Lease Option" which is Not "Wraps" which is Not "Owner Finance"

Be aware

Chevrolet is a type of car

Ford is a type of car

Mercedes is a type of car

Yugo is a type of car

Buick is a type of car

However "Chevrolet" is Not "Ford" which is not "Mercedes" which is Not "Yugo" which is Not "Buick"

There are advantages to using the right terms in order to get the correct answer to your question. 

[Don Konipol]

Quote from @Ken M.:

Be aware - Subject To is creative financing

Land Contracts are creative financing

Lease Options are creative financing

Wraps are creative financing

Owner Financing is creative financing

However "Subject To" is Not "Land Contract" which is not "Lease Option" which is Not "Wraps" which is Not "Owner Finance"

Be aware

Chevrolet is a type of car

Ford is a type of car

Mercedes is a type of car

Yugo is a type of car

Buick is a type of car

However "Chevrolet" is Not "Ford" which is not "Mercedes" which is Not "Yugo" which is Not "Buick"

There are advantages to using the right terms in order to get the correct answer to your question. 

Subject to financing became popular in the late 1960s and early 1970s when almost all residential loans were assumable without qualifying.  Jimmy Napier, Bill Nickerson, Al Lowery and Robert Allen came across the fact that a buyer could merely purchase a property “subject to” an existing loan and didn’t have to “assume” the loan.  The big advantage to the buyer was (is) no personal liability and no decrease in borrowing capacity.  

I purchase a couple of dozen SFR in Houston area back then all either subject to or owner financing with no personal liability.  Sold most of them with the same financing “attached”.  Of course having a transferable mortgage at  a 7.5% fixed rate was BIG when current rates were 16% for a new loan - IF you could get one!