The traditional way to sell a home is to list it with a real estate agent and wait for a buyer to come along. However, there are many other ways to sell your home, some of which are more unconventional.
Creative Financing
Creative financing is a broad term that refers to any type of financing that is not a traditional mortgage. This could include things like seller financing, rent-to-own, or even bartering.
Seller Financing
Seller financing is when the seller agrees to finance the buyer’s purchase of the home. This can be a good option for buyers who do not have a traditional mortgage or who cannot afford a large down payment.
Rent-to-Own
Rent-to-own is a type of lease agreement that gives the tenant the option to purchase the home at the end of the lease term. This can be a good option for buyers who are not yet ready to commit to buying a home or who need time to save up for a down payment.
Bartering
Bartering is when the seller agrees to accept goods or services in exchange for the home. This can be a good option for sellers who are looking for a unique way to sell their home or who need to sell their home quickly.
Novation Agreements
Both seller and buyer partner up to do any needed repairs to the property in order to increase the value of the property and either sell it, or keep it.
Subto
A subject-to transaction is a type of creative financing in real estate where the buyer takes over the seller’s existing mortgage. This means that the buyer does not have to obtain a new mortgage from a bank or other lender. Instead, they simply take over the payments on the seller’s mortgage..
BiggerPockets
BiggerPockets is a community of real estate investors who can provide advice and support to sellers who are looking to sell their home unconventionally. BiggerPockets is a good option for sellers who are looking to sell their home to an investor.
Other Creative Financing People
There are a number of other people and companies that specialize in creative financing. Some of these people and companies include:
- Pace Morby
- Dave Ramsey
- Grant Cardone
- Robert Kiyosaki
- The Rich Dad Company
- The Financial Gym
Which Option is Right for You?
The best option for you will depend on your individual circumstances and needs. If you are not sure which option is right for you, it is a good idea to speak with a financial advisor or real estate agent.