Why Most Creative Finance Offers Never Reach The Seller

Question

One thing I’ve noticed is that many investors already understand subject-to, seller financing, wraps, and lease options — but still struggle getting offers accepted on MLS properties.

It seems like the real bottleneck is often the listing agent. A lot of offers probably die before the seller even sees them because agents are uncomfortable with the structure or don’t fully understand how the offer works.

Experienced investors seem to approach the communication side very differently, especially when presenting creative offers on listed properties.

Curious how others here have handled the listing agent side of MLS creative finance deals.

Kelly Boulton · Answer

I'm not sure about Michigan, but in the two states I've been licensed in, Florida and New York, you have a legal duty to present all written offers or counteroffers.  Maybe the bar to get licensed is low, which does saturate the field with a lot of subpar agents, but even the terrible agents I've had to collaborate have been aware that they have to present the offer.  And if they aren't aware, I kindly remind them :)

Drew Sygit · Answer

Pretty sure that legally, agents are required to present all offers to their seller client.

Of course, the bar is so low to get an agent license, that it's often not done.

Kelly Boulton · Answer

I've found that the best way to do this is to take a couple steps ahead of sending your offer:

1-Have an actual conversation with the agent when requesting a showing.  Ask a few questions and have a knowledgeable positive attitude.

2-Create a short, yet simple doc that explains the method of financing you intend to use.  Personally, I have one for sub-to, seller fin, and lease options and I include this with each creative offer I make.

3-Don't just talk to or ask the agent about how the sellers feel regarding creative financing.  Submit an actual offer. It's the fiduciary duty of an agent to present ALL offers to their client.  If you send an actual offer, with your info doc, they HAVE to show the sellers.

If you are relying on the listing agent to draft the offer, just be firm and clear about what you would like. Most agents in Florida are transaction agents.  This means they can represent the buyer and seller, which creates an opportunity for them to receive both sides of the commission available. It's in their best interest to take you seriously at the end of the day. If for some reason they refuse, draft the offer yourself, or find an agent that will do so. I'm a realtor that works primarily with real estate investors on both sides. I haven't come across many like me, but we exist.  Feel free to reach out if I can assist in any way.  I'm happy to share the verbiage for my creative finance "how-tos".