Frequently Asked Questions
We understand you may have more questions and that’s ok! That is what we are here for, to make sure you understand all your options and all questions have been answered! We answer questions you didn’t even ask! We realize that most people looking to sell their house have questions about our process. That’s why we’ve provided answers to the most common questions about selling your house to us below. If you still can’t find the answer that you’re looking for, feel free to call or text us at: 210-444-2443.
A cash offer is just that, a cash offer. You sell your home at a very discounted rate as is and walk away with cash in hand.
This is beneficial to the seller who is looking for a quick solution to selling their home. Most cash buyers can close within 7 days. We understand sometimes this option works best considering the condition of the property and the ease of selling as is and selling fast.
In real estate, creative financing is non-traditional or uncommon means of buying land or property. Creative financing gives the seller more options to sell their home and get what they are looking for without paying commissions or selling their home for pennies on the dollar.
Creative financing also helps buyers obtain financing on a home without needing a traditional mortgage through a bank.
Creative financing offers you the seller more options than selling your home for cash which requires you to sell the home at a very discounted price. Also eliminates the need to sell your property with a realtor. Creative Financing is just another tool for you to get what you want and what you deserve out of your home. More money in your pocket, credit and tax benefits, less stress. And who doesn’t want that?
You name it we can help! See below a few of the situations TMG E-Vestments helps out with!
- We can help you stop foreclosure and save your credit.
- We help tired landlords who are tired of the day to day of being a landlord.
- We help people who have inherited a property and don’t know what their options are for selling.
- We help people who are delinquent on taxes or have pending liens.
- We help people who have little to no equity.
- We help people who are looking to get top dollar for their home without having to pay a huge commission or make any repairs to their home.
Just to name a few!!
Subject To-Buying a property “subject-to” means a buyer essentially takes over the seller’s remaining mortgage balance, without making it official with the lender. It’s a popular strategy among real estate investors.
To a borrower, the advantage is that the rate will remain constant, and the monthly payment will remain the same throughout the life of the loan.
The lender is taking the risk that interest rates will rise and that it will carry a loan at below-market interest rates for some or part of the 30 years.
Subject to real estate can provide an instant solution to an urgent problem.
Also, because the buyer is responsible for making mortgage payments on time, this can improve the seller’s credit score. In addition, the seller will not have to pay closing costs, fees, or make repairs. Also has some tax benefits!!!
Seller financing is a loan provided by the seller of a property or business to the purchaser. When used in the context of residential real estate, it is also called “bond-for-title” or “owner financing.”
In seller financing, the seller takes on the role of the lender. Instead of giving cash to the buyer, the seller extends enough credit to the buyer for the purchase price of the home, minus any down payment. The buyer and seller sign a promissory note (which contains the terms of the loan).
You, the buyer, sign both a promissory note (promising to repay the loan) and either a mortgage or a deed of trust (allowing the seller to foreclose if you fail to pay). In return, the seller signs a deed transferring title to you. Because you hold the title, you can sell the house or refinance.
Another benefit of seller financing to an owner is, after the sale of the home, s/he would be receiving a steady monthly income. In some cases, owners can avoid or spread out paying capital gains tax on the sale of their property by delaying the ultimate sale of their property.
Seller or owner financing provides a solution for buyers who ordinarily wouldn’t be able to obtain conventional financing. However, in some situations seller financing makes the seller a lender. When this happens, it is not prohibited under the Dodd-Frank Act.
A combination of a subject to and seller finance.
So we’re doing a hybrid. We’re doing subject to on the existing mortgage and seller finance on the debt or equity that the seller is going to carry for us. There is no debt in place so debt is created in the form of a promissory note or deed of trust.
We create an instrument or document that says Buyer owes me this much, he put this much money down and he still owes me this much money for this amount of time.
What if we have a deal with a mortgage in place for $100k but they want to sell the house for $200k which means they have $100k in equity and $100k in debt.
For this, we would create 2 documents. The first one for payment to the bank and the second one for the payment to the seller.
Creative Financing is a solution for everyone and if used in the right way can benefit buyers and sellers. Find out more!
We absolutely love this question! With TMG E-Vestments we make sure you’re covered!
We get it and we understand completely your hesitation here.
What happens to your property if we don’t perform, our company goes out of business or we die?
Although this has not happened to me or my team, we place layers of safety measures in place to prevent anything from happening making sure you’re covered!
Just like you would never jump into a car blindly accelerate full throttle crossing a residential street. You place layers to protect yourself and others. You put your seat belt on, you look in all directions before moving forward, accelerate slowly, and come to a complete stop when you see a stop sign, potential person, or car crossing in front of you to prevent injuries, destruction, and even death.
So, we provide layers:
1. We have a strict screening policy on who we either rent or resell to using underwriters (property management and or MLO’s) to ensure pride of ownership.
2. We have a reserve in place to take care of your mortgage if anything happens.
3. The reserve is in place also for damages that may occur.
4. If the damages are greater than the reserve then we have homeowners insurance to cover the extent as well as a warranty subscription.
5. We use a third-party servicing company to ensure your payments get made on time first, then insurance and HOA’s, and any other fees.
6. If we get abducted by aliens and we miss even one payment, you will get your property back immediately on day 31 of our late payment through a document called a performance deed. And at the very least your mortgage has been paid down, and we have maintained or corrected any credit issues from when you sold the property to us. You keep any money paid up to this point and benefit from any upgrades to the property.
If we have failed in any of these steps then I have failed myself, my family, and my team and I did not do my due diligence and I have lost a lot of money, time, and respect. Which WILL NOT HAPPEN!
Our goal is to not give your house back! As promised our goal is to hold this property as part of our portfolio and have it be a win-win for all parties,
Our relationship is more important and is more than just a simple sale. Integrity is what our foundation is built on.
When considering a Subject To or Seller Finance transaction we require all of our clients to sleep on it for a period no shorter than 24-48 hours.
This is like getting married! It isn’t something we want to jump into. We’ll be in this relationship for quite some time. We have to be sure this is right for both of us!
So once you know and understand how the process works for whatever option you choose, Sleep on it! We’ll touch base in 24-48 hours to ensure we are the right fit for you and your situation. And if you decide we’re a good fit we’ll move forward to the next steps!!
Another great question! What makes us different is we educate sellers and buyers on all their options. We don’t just buy properties, we offer solutions. We will walk you through all your options and help you choose what works best for your situation. If the solutions provided don’t work for you then at least you have learned about your options and know what to expect when moving forward! We are not interested in winning! We win when you win.
Again we don’t buy properties, we offer solutions. We can help you relocate wherever you need to. We can help you find a rental or even in some cases find another home to buy through our creative financing options! We will also provide movers if needed. Not to worry, we’re here to help.
No, not at all. We’re Creative Financing Investors not Real Estate Agents. There are no commissions to be paid. If we give you a number that is the number you walk away from the table with. And we pay all closing costs and fees. We buy the property as is, no repairs needed.