Pitching Subto/Creative Finance

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Pitching Subto/Creative Finance

Patricia K.
Member since 2023 · 2 posts · 1 vote

Hi all. Texting with a few agents and I want to pitch creative finance/subject to. Does anyone have a quick script on how to pitch it/describe it in a few sentences so they don't just immediately say "not interested" I'm having trouble with them being open to hearing about it and potentially bringing it to the seller. Thanks!

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  • Account Closed
    Investor · Scottsdale Austin Tuktoyaktuk · Member since 2021 · 4k+ posts · 4k+ votes
    3y
    Quote from @Patricia K.:

    Hi all. Texting with a few agents and I want to pitch creative finance/subject to. Does anyone have a quick script on how to pitch it/describe it in a few sentences so they don't just immediately say "not interested" I'm having trouble with them being open to hearing about it and potentially bringing it to the seller. Thanks!

    Think of it this way. They are rejecting the information you are currently providing and you want to provide less info?
    0Reply
  • Patricia K.
    OP
    Member since 2023 · 2 posts · 1 vote
    3y

    Huh? I'm simply asking "Would the seller be open to creative finance?" And they say no. I haven't provided any info yet...why would I provide "less info"?

    0Reply
  • Don KonipolBusiness Member
    Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
    3y
    Quote from @Patricia K.:

    Hi all. Texting with a few agents and I want to pitch creative finance/subject to. Does anyone have a quick script on how to pitch it/describe it in a few sentences so they don't just immediately say "not interested" I'm having trouble with them being open to hearing about it and potentially bringing it to the seller. Thanks!

    Any agent that recommends a seller accept a subject to sale put themselves at risk of being sued if the buyer defaults and the seller is harmed.  Amy agent with a hint of knowledge will run away from this situation for self preservation. 

    A BUYERS agent representing the buyer MAY be okay with a subject to transaction, but if they know their market they’ll realize that their chance of this kind of transaction going through to close is a lot less than a conventional sale since once the seller understands the disadvantages and risks they’ll probably reject it.

    A much better pool of sellers for subject to are those that don’t have any equity in their property, so are unlikely to list with a broker since they’d have to come out of pocket to pay the commission.  These sellers often try a FSBO, and may agree to a subject to if it solves their immediate need.  


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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    3y
    Quote from @Don Konipol:
    Quote from @Patricia K.:

    Hi all. Texting with a few agents and I want to pitch creative finance/subject to. Does anyone have a quick script on how to pitch it/describe it in a few sentences so they don't just immediately say "not interested" I'm having trouble with them being open to hearing about it and potentially bringing it to the seller. Thanks!

    Any agent that recommends a seller accept a subject to sale put themselves at risk of being sued if the buyer defaults and the seller is harmed.  Amy agent with a hint of knowledge will run away from this situation for self preservation. 

    A BUYERS agent representing the buyer MAY be okay with a subject to transaction, but if they know their market they’ll realize that their chance of this kind of transaction going through to close is a lot less than a conventional sale since once the seller understands the disadvantages and risks they’ll probably reject it.

    A much better pool of sellers for subject to are those that don’t have any equity in their property, so are unlikely to list with a broker since they’d have to come out of pocket to pay the commission.  These sellers often try a FSBO, and may agree to a subject to if it solves their immediate need.  



    Absolutely Don any agent representing a seller would be a fool to partake in that type of transaction and most brokers I am sure wont allow their agents to do those transactions either.. U have Sub too being marketed add-nauseam by the well known Guru on BP and other social media. Your going to generate a big crop of investors who simply do not have the financial capacity to be transacting in Sub Too and are looking to get into real estate any way they can with no forethought as to what can happen and the risks.  
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  • Jessie Dillon
    Investor · Hopedale, MA · Member since 2021 · 321 posts · 213 votes
    3y

    rather than asking about specific properties, i'd try to get on the phone with as many agents as possible (x/day), and explain who you are and what you do, and just say like, if you're ever sitting on a listing that just won't move for months, or you get a lead that would be underwater if they had to pay commissions/fees, i may be able to make it work this way and pay your commission myself.

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