Creative finance, in plain English.
Seller financing, DSCR loans, balloon notes, and the tax rules behind them. Short, specific, and written by the people who structure and paper these deals every week.
Seller financing explained: how owner-carried notes work, why free-and-clear sellers can offer them, typical terms, and the legal rules that apply.
Seller financing and subject-to are opposite halves of creative finance. Compare equity profile, due-on-sale risk, legality, and when each structure fits.
DSCR loans qualify rental properties on their rent, not the borrower's income. How the debt service coverage ratio works, what lenders look for, and when to use one.
A balloon payment is the lump-sum payoff due when a note matures before it fully amortizes. Why seller-financed notes use balloons and how buyers plan the exit.
How an installment sale under IRS Section 453 spreads capital gains across years of payments, and why it makes seller financing attractive to long-time owners.
When a seller-financed buyer will live in the property, Dodd-Frank generally requires a licensed loan originator and ability-to-repay compliance. What that means in practice.
A step-by-step path to selling a tenant-occupied rental direct to another investor: pricing on rent, finding buyers, closing through title, and when to offer terms.
A seller-carried second sits behind an institutional first mortgage and covers part of the price, cutting the buyer's cash to close. How the hybrid structure works.
Yes, DSCR loans exist below 1.0 coverage: programs run to 0.8, low-ratio tiers reach 0.5, and no-ratio options skip the test. What changes is leverage, credit, and reserves.
Yes: multiple DSCR programs allow Airbnb, VRBO, and other short-term rentals, qualified on expected rental income with no tax returns. What to know before applying.
DSCR down payments run 15% to 30% depending on credit, coverage, and loan size. Where each tier sits, what moves the number, and how seller seconds change the math.