How we buy houses: three structures, not one number
Most cash buyers have only one way to buy. That is why the talk always turns to how far down they can push you. How we buy houses depends on what you need. We can set up a purchase three different ways, and each one reaches a very different number.
This is why we ask what you need before we say anything. Price and terms are a trade. You can often reach a high number if you are flexible about when you get paid.
If you need all of it on Friday, the number comes down. Neither is a trick. They are just different deals, and only you know which one your situation can handle.
Structure 1 of 3
All cash
Our own funds, closed in about one to three weeks.
Suits you if: you need speed, certainty, or to be out from under the house quickly.
This is the simple one. We buy the house outright with our own money, you pick the closing date, and a title company handles the rest. There is no lender, so nothing hangs on a stranger's loan approval. And there is no appraisal to come in low and sink the sale a month in.
The trade-off is price. Cash today is worth less than the same amount paid over time. We also take on the repairs, the holding costs, and the risk of reselling. If your number is close to full retail, all cash is usually the least likely way to reach it.
Structure 2 of 3
Seller financing
You carry the note. We pay you over time, usually at a higher total price.
Suits you if: you own the house outright or have a lot of equity, and the total matters more to you than getting it all at once.
Instead of paying you the whole amount at closing, we make you the lender. We pay you monthly, at an agreed rate, over an agreed term, with the house as security. If we stopped paying, you would have the same remedy a bank has.
This is usually how a seller reaches the number they really wanted. We can pay a lot more when we are not paying it all today, because our own cost of money drops out of the math.
It can also spread your tax bill across several years instead of landing it all in one. For some sellers, that turns out to be the bigger benefit. Your accountant can tell you whether it applies to you.
What this one costs you
You do not get your money at closing, and you are counting on us to keep paying. That is a real risk, and the paperwork is what manages it. Expect a properly recorded note and mortgage or deed of trust, not a handshake and a promise.
Structure 3 of 3
Subject-to the existing mortgage
Your loan stays in place and we take over making the payments.
Suits you if: you have little or no equity, and the monthly payment, not the price, is what is crushing you.
We buy the house and take title, but your existing mortgage is not paid off at closing. It stays where it is, and we take over the payments.
If you owe close to what the house is worth, this is often the only structure that works at all. After costs, there is simply no equity left to fund a normal sale.
It solves a very common problem. The house is not really the issue; the payment is. An inherited house with a mortgage still running. A job in another state. A payment that quietly became too much.
A normal sale can take months you are still paying for. And an all-cash number has to come in under the loan balance before it makes sense for the buyer.
What this one costs you
Understand two things before you consider this. First, the loan stays in your name, and you stay legally liable on it until it is refinanced or paid off. Its payment history keeps affecting your credit. That helps while payments are made and hurts badly if they are not. Second, almost every mortgage has a due-on-sale clause. It lets the lender demand the full balance when the property changes hands. Lenders rarely use it while payments arrive on time, but they have the right to. A buyer who tells you that risk does not exist is misleading you.
Which one you end up with
You do not have to work this out yourself, and you should not have to. Tell us the address and the number you need. We will tell you which of the three can reach it, what it would look like in practice, and where the catch sits in each one.
Sometimes none of them work, and listing is truly your better option. We will say that too.
For seller financing and subject-to, we would rather you had your own attorney read the paperwork. This is not a box we are ticking. Both come with obligations that last beyond closing. You should have someone in your corner reading them for you.
Common questions
Common questions
- Why do you have more than one way of buying?
- Because price and terms are a trade, and different sellers need different sides of it. Someone who has to clear a number to buy their next place cares about the total. Someone facing a deadline cares about speed. If we only bought one way, most people would hear a number lower than they need. And we would lose deals we could have done.
- Which one will I end up with?
- Whichever one reaches your number without breaking. Tell us what you need, and we will tell you which structures can get there. That includes telling you when none of them can.
- Is buying subject-to the existing mortgage legal?
- Yes. Buying a house while the existing mortgage stays in place is legal and long established. What matters is that it is documented properly and that you understand two things. First, the loan stays in your name until it is refinanced or paid off. Second, nearly every mortgage has a due-on-sale clause. It lets the lender call the balance due when the property transfers. Lenders rarely act on it while payments are being made, but they are entitled to. Anyone who tells you that risk is zero is not being straight with you.
- What happens to my credit with subject-to?
- The loan stays reported in your name, so its payment history keeps affecting your credit, for better and for worse. If we pay on time, which is the whole basis of the deal, that history is positive. But you are counting on us to do it. Treat that as a real concern, not a formality. Ask us how we handle payments and what happens if one were ever missed.
- Can you use these if I am behind on payments or in foreclosure?
- Often this is where they help most, because a seller in default usually has less equity than the situation needs. Be aware that many states have specific laws on buying from homeowners in default or foreclosure. They include written notice and cancellation rights. Those laws exist to protect you. We follow them, and you should expect any buyer to.
- Do I need my own lawyer?
- For seller financing or subject-to, we would rather you had one, and we will say so before you ask. These are ordinary deals, but they are not the same as handing over a deed for cash. The paperwork is where your protection lives. We are not going to pretend a rushed signature is in your interest.
Tell us your number and we will tell you which structure reaches it
You do not need a number ready, or photos, or a plan. Want to know your real options, even the ones that do not involve us? Call and ask.
Sabrina usually picks up. (615) 576-8827