How we buy houses: three structures, not one number
Most cash buyers have exactly one way to buy, which is why that conversation always turns into how far down they can talk you. How we buy houses depends on what you need, because we can structure a purchase three different ways and they reach very different numbers.
This is the whole reason we ask what you need before we say anything. Price and terms are a trade. A high number is often reachable 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 simply different deals, and only you know which one your situation can take.
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.
The straightforward 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 depends on a stranger's mortgage approval, and no appraisal to come in low and collapse the sale a month in.
The trade is the price. Cash today is worth less than the same amount spread over time, and we are also taking on the repairs, the holding costs, and the risk of reselling. If your number assumes something close to full retail, all cash is usually the structure least likely 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 substantial equity, and the total matters more to you than getting all of it at once.
Instead of handing you the whole amount at closing, we make you the lender. We pay you monthly, at an agreed rate, over an agreed term, secured against the house. If we stopped paying, you would have the same remedy a bank has.
This is usually how a seller reaches the number they actually wanted. We can pay considerably more when we are not paying all of it today, because our own cost of money drops out of the arithmetic. It can also spread your tax exposure across years rather than landing it in one, which for some sellers turns out to be the larger benefit. Your accountant is the right person to tell you whether that applies to you.
What this one costs you
You do not get your money at closing, and you are relying 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 it is the monthly payment rather than the price that 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 paying it. For a seller who owes close to what the house is worth, this is often the only structure that works at all, because after costs there is simply no equity left to fund a conventional sale.
It solves a specific and very common problem: the house is not really the issue, the payment is. An inherited property with a mortgage still running. A job in another state. A payment that quietly stopped being affordable. Selling conventionally 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. The loan stays in your name and you remain legally liable on it until it is refinanced or paid off, so its payment history keeps affecting your credit: an advantage while payments are made, and a serious problem if they are not. And almost every mortgage contains a due-on-sale clause entitling the lender to demand the full balance when the property changes hands. Lenders rarely exercise it while payments arrive on time, but they are within their rights to, and 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 the answer is that none of them work and listing is genuinely your better option, and we will say that too.
For seller financing and subject-to we would rather you had your own attorney read the paperwork. That is not a formality we are ticking off. Both carry obligations that outlast the closing, and you should have somebody in your corner who is 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. Somebody who has to clear a number to buy their next place cares about the total. Somebody facing a deadline cares about speed. If we only bought one way, the answer to most people would be 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, including when the answer is that none of them can.
- Is buying subject-to the existing mortgage legal?
- Yes. Buying a property while an existing mortgage stays in place is legal and long established. What matters is that it is documented properly and that you understand two things: the loan stays in your name until it is refinanced or paid off, and nearly every mortgage contains a due-on-sale clause allowing the lender to 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 remains reported in your name, so its payment history continues to affect your credit, for better and for worse. If we pay on time, which is the entire basis of the arrangement, that history is positive. But you are relying on us to do it, and you should treat that as a real consideration rather than 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 statutes governing purchases from homeowners in default or foreclosure, including written notice and cancellation rights. Those 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 transactions but they are not the same as handing over a deed for cash, and 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 already know your number. Tell us what it is and we will tell you straight whether we can work with it. About two minutes, no obligation, never a fee. If we are not the right answer for your situation, we will say so.