Creative Financing for Realtors

What Is Creative Financing

Not every buyer needs a bank to close. Creative financing is a set of structures where H&M Property Partners, as a capital partner, closes directly with your seller on terms other than a traditional mortgage payoff. The three structures we use most often:

● Subject To: we take over the payments on the seller's existing loan and close on the property, without a new loan being originated.

● Hybrid: a smaller cash payment to the seller at closing combined with a Subject To structure, used when the seller has some equity but not enough to justify a full cash-out.

● Seller Finance: the seller carries the financing directly, on terms we agree to at closing, typically used when a property is free and clear.

Each of these lets us close on properties that would otherwise sit on the market, particularly when the seller does not have enough equity for a traditional sale to make sense, or when a fast, uncomplicated close matters more to them than maximizing top-line price.

How We Work With Listing Agents

We close directly and we do not retrade a deal once we have agreed to terms. If our numbers do not work on a property, we say so up front, we do not tie up your listing and circle back with a lower offer later.

Commission is straightforward. On a Cash Proposal, we pay 6 percent on the second cash offer as dual agency. On an Option Offer, commission follows your existing listing agreement. If you have a question about a specific listing, ask us directly rather than guessing, we would rather have that conversation early.

Why the Terms Look Different Than an All-Cash Offer

A creative financing offer is not a lower offer dressed up differently. It is often the only offer available for a seller who does not qualify for a fast, all-cash sale, whether because of the property's condition, the seller's equity position, or their timeline. We present these terms because they solve a problem a conventional buyer cannot, not because we are trying to get a discount your seller would not otherwise accept.

Agent FAQ

-Who is on title? H&M Property Partners LLC closes and holds title directly. We are not assigning the contract to another buyer before closing.

-How fast can we close? Timelines vary by structure, typically comparable to or faster than a conventional financed buyer, since we are not waiting on a lender's underwriting.

-Is this a wholesale deal? No. We close directly as the buyer of record. There is no assignment fee and no daisy chain of buyers between contract and closing.

-What if my seller has questions? We are glad to get on a call with you and your seller together, before or after an offer is submitted.