Novations & Creative Finance Startup

When a discount is not available but terms are. Novations, seller finance and subject-to explained plainly, including the parts that get people in trouble.

5 lessons · 41 min

1. 1Why some sellers cannot take a cash discountEquity, not stubbornness, is usually what kills the cash offer.7 min
2. 2Novation: structure, paperwork and who must be licensedYou improve and sell the house on the seller's title for an agreed net.10 min
3. 3Seller finance terms that work for both sidesFive variables decide everything: price, down, rate, term and balloon.9 min
4. 4Subject-to and due-on-sale, honestly explainedYou take title; their loan stays in their name. That is the whole risk.9 min
5. 5Disclosures you must make, every timeThe habit that keeps you in business longer than any script.6 min

Education only — not legal, tax or investment advice, and no promise of income. Rules differ by state; check yours and use a real estate attorney.