Most homeowners have never heard the terms subject-to, owner finance, or custom offer structures. But these creative financing structures can be the difference between walking away with $30,000 and walking away with $60,000 on the same property.
Here's a plain-English breakdown of each — no real estate jargon required.
Why Creative Financing Exists
Traditional cash buyers are limited by what a property is worth to them after repairs, holding costs, and resale profit. Creative financing structures work differently — they allow buyers to pay more for a property because they're not constrained by the same math.
When used correctly, creative financing can benefit both the buyer and the seller. The buyer acquires a property with less upfront capital. The seller receives more money than a cash offer would provide.
Subject-To (Subject to Existing Financing)
In a subject-to transaction, the buyer takes title to your property while your existing mortgage stays in place. The buyer makes your mortgage payments going forward — but the loan remains in your name.
How it benefits sellers: When buyers take over your existing mortgage, they can offer you equity above and beyond what a cash buyer would pay. They're acquiring a property without needing new financing, which means they can pay more.
Example: You owe $120,000 on a property worth $200,000. A cash buyer might offer $150,000. A subject-to buyer might pay $180,000 — taking over your $120,000 loan and paying you $60,000 in equity.
Important consideration: Your mortgage remains in your name until it's paid off or refinanced. Work with an experienced buyer who has a track record of honoring these commitments. Tallbridge has closed hundreds of subject-to transactions.
Custom Offer
Custom Offer is a contract replacement. Instead of a direct sale, the buyer steps into your position in the sale — typically in situations where the property is already under contract or where the buyer wants to control the sale process.
In real estate wholesaling, custom offer structures allows Tallbridge to market your property to end buyers while protecting your interests. You still receive your agreed price — we make our profit from the end buyer's higher purchase price.
How it benefits sellers: You get a guaranteed price, don't have to manage showings or negotiations, and close when you want.
Best for: Properties with strong equity where you want speed and certainty without the hassle of the traditional market.
Owner Finance (Seller Financing)
In owner financing, you become the bank. Instead of receiving a lump sum at closing, you receive monthly payments over time — often at a higher total price than a cash sale.
How it benefits sellers: You can sell a property that might not qualify for traditional bank financing — and receive a higher purchase price in return. Monthly income replaces a lump sum.
Example: A property worth $150,000 might sell for $165,000 owner financed at $1,200/month. You receive more total money than a $140,000 cash offer.
Tax consideration: Owner financing can spread capital gains over multiple years through the installment sale method. Consult a tax advisor for your specific situation.
Best for: Sellers who don't need all cash immediately and want higher total proceeds.
How Tallbridge Uses Creative Financing
When you request an offer from Tallbridge, we evaluate your property for all three options. In many cases, a creative financing offer is 15-30% higher than our straight cash offer for the same property.
We present all options side by side so you can see the real numbers and choose what works best for your situation. There's never pressure — just options.
If you have questions about how subject-to or custom offer structures might apply to your specific property, call us at 1-866-492-1158. We're happy to walk through it.