Custom Solutions

Flexible Real Estate Structures Built Around the Property, Financing, and Seller's Goals

Not every property fits a standard cash offer. We design custom transaction structures — seller financing, hybrid deals, installment sales, and more — built around what actually works for your situation.

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At a Glance

Available

Varies by Structure

Estimated Timeline

Varies

Equity Required

Varies by Agreement

Closing Costs (Seller)

Customized

Structure Type

Best Fit For

Complex situations that don't fit a standard cash offer

Plain English

How This Works

Creative finance is a broad category that covers any real estate transaction structure that isn't a traditional cash purchase or conventional listed sale. It includes seller financing, hybrid transactions, installment sales, lease options, balloon payment structures, and combinations of the above.

These structures are used when a standard approach doesn't serve the seller's goals well — whether because of tax considerations, the need for ongoing income, a property with unique characteristics, or a situation that simply doesn't fit any off-the-shelf solution.

Not every situation qualifies for every structure. We evaluate each property and seller individually and design an approach that reflects the actual circumstances involved. All creative finance transactions should be reviewed by a qualified real estate attorney and, where applicable, a tax advisor.

The Process

Step by Step

Understand the Seller's Goals

We start by understanding what the seller actually needs — whether that's immediate cash, ongoing income, tax efficiency, or something else.

Review the Property and Existing Financing

We look at the property's value, condition, any existing liens, and the current mortgage situation if applicable.

Design One or More Potential Structures

Based on the seller's goals and the property details, we design one or more transaction structures that could work.

Review Payments, Term, Interest, and Balloon Provisions

We walk through the terms of the proposed structure in detail — what the seller receives, when, how, and under what conditions.

Complete the Transaction Through Title and Legal Process

All creative finance transactions close through a licensed title company with proper legal documentation. Independent legal review is strongly recommended.

Fit Check

Who This Is Best For

Sellers with significant equity who want an ongoing income stream rather than a lump sum
Situations with tax considerations where an installment sale may be more efficient than a lump-sum receipt
Properties with unique characteristics that make traditional cash offers difficult
Sellers who are open to flexible timing on receiving proceeds
Complex situations involving multiple liens, unusual ownership structures, or non-standard property types

Why It Works

Key Benefits

Designed Around Your Goals

No two creative finance deals look the same. The structure is designed around what actually works for you, not a template.

Potentially More Favorable Tax Treatment

Installment sales may allow sellers to spread capital gains recognition over time. Consult a tax advisor to understand how this applies to your situation.

Access to a Buyer When Others Won't Qualify

Creative structures can allow a transaction to close in situations where traditional buyers can't obtain financing.

Income Stream Options

Seller financing can generate ongoing monthly income rather than a single lump-sum payout.

Flexibility on Timing and Terms

Payment timing, balloon provisions, interest rates, and term length can all be customized to reflect what makes sense for the seller.

Important to Understand

Considerations

Every transaction involves tradeoffs. Here is what to keep in mind with this approach.

Creative finance structures are more complex than standard real estate transactions. Independent legal review by a licensed real estate attorney is strongly recommended before signing any agreement.

Not every seller qualifies for every structure. The appropriateness of any given approach depends on the specific property, the seller's situation, and the terms that can realistically be agreed upon.

If seller financing is involved, the seller takes on the role of a lender and assumes associated risks, including the risk that the buyer defaults on payments.

Tax implications vary significantly by structure. We strongly recommend consulting with a qualified tax advisor before completing a creative finance transaction.

Balloon payment provisions mean a lump sum will be due at a future date. Understand when that date is and what happens if the buyer cannot meet that obligation.

Illustrative Example

Example Seller Scenario

Educational Example Only

A homeowner owned a property outright with no mortgage and significant equity. A standard cash offer would have triggered a large capital gains tax in the year of sale. The seller was also interested in generating monthly income rather than receiving everything at once.

Through a seller-financed transaction, the seller received a meaningful down payment at closing and monthly installment payments over a defined term, with a balloon payoff at the end. The installment structure spread the capital gains recognition across multiple tax years. All terms were reviewed by the seller's attorney and tax advisor before closing.

Example shown for educational purposes only. Actual terms, timing, eligibility, tax treatment, and proceeds vary by property and transaction. Consult a qualified tax and legal professional before entering any seller-financed agreement.

Example shown for educational purposes only. Actual terms, timing, eligibility, and proceeds vary by property and transaction.

Common Questions

Frequently Asked Questions

What exactly is seller financing?

Seller financing means you act as the lender instead of a bank. The buyer makes monthly payments to you directly over an agreed term, with a balloon payoff at the end.

Is seller financing safe?

It involves risk, as with any lending arrangement. The buyer could default. The terms of the agreement, including how default is handled, should be clearly documented and reviewed by an attorney.

Do I need an attorney for creative finance deals?

Yes. We strongly recommend independent legal review for any creative finance transaction. These deals have more moving parts than a standard sale and the documentation matters.

What is a balloon payment?

A balloon payment is a lump sum due at a specific future date — often at the end of a seller-financed loan term. The buyer must pay off or refinance the remaining balance at that point.

Can you combine structures?

Yes. Some transactions combine elements of multiple structures — for example, a seller-financed note alongside a partial cash payment at closing. We'll design whatever combination fits the situation.

Ready to See Which Option Fits?

Tell us about your property and we'll go over every option that makes sense for your situation — no pressure, no obligation.

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