Please bear with us as our website is still under development—but rest assured, our full range of services is up and running, ready to help you every step of the way!
Please bear with us as our website is still under development—but rest assured, our full range of services is up and running, ready to help you every step of the way!
Thank you for visiting 2 Creative Real Estate. We appreciate your interest and are here to help you navigate your real estate challenges with innovative, win‑win solutions. Whether you're selling, partnering, or investing, we're committed to supporting you every step of the way. Enjoy your visit and feel free to reach out with any questions.
When you receive a cash offer on your home, it might seem lower than expected. For example, suppose your property is worth $100,000 in its current condition but has the potential to be valued at $150,000 after $40,000 worth of renovations. Investors typically use a formula to determine their maximum cash offer: they take 70% of the future value (70% of $150,000 = $105,000) and then subtract the renovation costs ($105,000 – $40,000 = $65,000). However, to cover additional expenses like legal fees, closing costs, and securing capital, investors often offer even less—say around $50,000 in cash—while leaving room for negotiation.
If you need cash quickly, that cash offer might work for you. But if your goal is to maximize your overall return, our creative financing solutions can provide much greater value. For instance, instead of a straightforward cash offer of $125,000, we might structure a deal where you receive an $18,750 down payment, with the remaining $106,250 financed over 20 years at 3% interest. This would result in monthly payments of approximately $708.34. Over time, you'll receive not just the upfront amount but also an additional $170,000.40 in payments—substantially more than a one-time cash offer.
Our approach is all about creating win-win solutions that address your specific needs while ensuring that every transaction is handled securely and professionally.
Ensuring Legal Assurance in 'Subject To' Real Estate Transactions
Engaging in "Subject To" real estate transactions requires careful consideration of legal implications to protect all parties involved. We strongly advise sellers to consult with an attorney experienced in creative financing to review and explain the terms of our agreement. This ensures a comprehensive understanding of the transaction and safeguards your interests.
Addressing the Due-On-Sale Clause
A common concern in "Subject To" deals is the due-on-sale clause, which permits lenders to demand full repayment of the mortgage if the property is sold or transferred. To mitigate potential risks:
Legal Consultation: An attorney well-versed in creative financing can assess the likelihood of the due-on-sale clause being enforced and advise on strategies to minimize this risk. For instance, certain transfers, such as placing the property into an inter vivos trust where the borrower remains a beneficiary, may not trigger the due-on-sale clause.
Cornell Law School
Proactive Communication: Maintaining consistent and timely mortgage payments is crucial. Lenders are primarily concerned with receiving payments; ensuring these are up-to-date can reduce the chances of the clause being invoked. While due-on-sale clauses are prevalent, they are not always enforced, especially if the lender continues to receive regular payments.
Quicken Loans
Contingency Planning: In the unlikely event that a lender enforces the due-on-sale clause, having a contingency plan—such as refinancing the property or paying off the remaining loan balance—can provide a clear course of action. Engaging with legal professionals experienced in real estate finance can help in formulating effective contingency strategies.
Foster
By collaborating with legal professionals experienced in creative financing, we aim to facilitate transactions that are transparent, secure, and beneficial for all parties involved.