Monday, 11 July 2016

Hunter Estess - Creative Financing

Successful real estate investors, like Hunter Estess of Dash Development and Estess Contractors, have made lucrative real estate deals with creative financing methods. Creative financing means using approaches other than standard mortgages to finance a property. Three creative financial  tactics that investors use involve seller-financing, otherwise known as seller-carryback.

                                           Hunter Estess

Investors like Estess may look to the seller as a financier for a desired property. This can be a consideration but the investors need to define what the seller’s needs are, how much the seller owes on the property in question, and whether the seller’s payments are current. Assessing these three qualities will help the purchaser take the next steps in securing the seller’s financial backing in the purchase of the property. If the seller’s property is free and clear, it could be to the seller’s benefit to work with the purchaser. A seller may not want to pay taxes on the whole property at once, or he may be nearing retirement age and want to have some added income but not in one large sum.

Hunter Estess and other real estate developers and investors may also work with the seller in the other two scenarios. If there is a loan current on the property, the purchaser can enact a “subject to” deal wherein he takes ownership of the seller’s loan, with the title in the purchaser’s name but the loan still belonging to the seller. If the seller still has a loan but wants money back on the deal, the buyer can offer the seller a carryback loan. Third party providers can easily manage all of this into one quick, tidy loan.