There are a variety of options (a wrap note, subject-to transfer, installment sale, master lease, equity roll, & many others) but we typically structure deals as a "wrap". Meaning you finance the full purchase price, wrapping your existing loan balance + your equity, while your loan stays in place. We make one payment to a third-party loan servicer each month, who pays your lender their amount and forwards the rest to you.

Your lender stays protected (payments are never missed), your loan stays current, and we'll work with you to find the structure that meets your needs for cash flow, tax deferral, and overall return while also giving us the financing terms we need to make it a great deal for everyone.

Most loans have a due-on-sale clause, but the seller finance structures work because we take specific steps to protect both you and your lender: payments continue uninterrupted through a neutral third-party servicer, your lender's first-position lien stays fully intact and protected by our recorded wrap note in second position, the property insurance and other lender requirements remain in full compliance, and the loan performs exactly as it always has.

We structure the transaction to minimize disruption to your lender's position—title can be recorded in ways that maintain continuity, and because nothing about their security or payment stream changes, there's typically no trigger for review. Lenders rarely call a performing loan, even if they do notice, because there's no upside for them and it creates unnecessary cost and hassle.

We document a clear escalation plan in the purchase agreement from day one. First step is always addressing their specific concern—usually providing updated documentation, demonstrating payment history, or adjusting title structure. Often, temporarily placing title back in your name or into an entity you control satisfies their requirements while keeping the loan in place. These remedies are fast and preserve the favorable loan terms. Only if those solutions fail (extremely rare) would we refinance with our own lender.

All payments run through a licensed third-party servicing company. Each month, the servicer collects our payment, immediately forwards your lender's amount (keeping your mortgage current), and deposits your portion into your account. You get full monthly reporting, complete visibility, and the peace of mind that a professional intermediary is handling the money and documentation.

Yes, completely. Federal law explicitly permits property sales with existing financing in place—this isn't a loophole, it's an established legal structure used throughout commercial real estate. The key is proper documentation and execution. Whether we use a wrap note, subject-to transfer, or hybrid structure, the transaction is documented through recorded deeds of trust, promissory notes, and servicing agreements that protect all parties involved.

You're protected by a recorded deed of trust or mortgage, just like a bank. If we default, you have the right to reclaim the property—and we structure these agreements to use forfeiture whenever possible, which is significantly faster and simpler than foreclosure. Forfeiture lets you regain ownership in weeks rather than months, with minimal legal expense. The third-party servicer documents every payment and notice, creating a clear paper trail for enforcement.

Bottom line: you keep all payments we've made (including any down payment), you get the property back quickly, and you can resell it, refinance it, or keep it. Many sellers come out ahead because they've collected income while the property appreciated, giving them even better options than they started with.

Absolutely—it's one of the biggest advantages. Under IRS Installment Sale rules (IRC §453), you pay capital gains taxes as you receive payments over time, not all at once when the property sells. This means you avoid a massive tax hit in year one, stay in lower tax brackets by spreading income across multiple years, and keep control of money that would have otherwise gone to the IRS—earning interest on it instead.

In a traditional sale, you might net 60-70% after taxes, then invest what's left. With seller financing, you're earning interest on 100% of the sale price while deferring taxes, plus you typically get a higher purchase price. The combination—tax deferral, interest income, and premium price—often puts significantly more money in your pocket over time. We recommend running the numbers with your CPA, but most sellers find the tax treatment alone makes this worth serious consideration.

Because you're getting benefits a traditional sale can't offer—and your total return often exceeds a cash sale. A slightly lower interest rate allows us to pay you a higher purchase price (often 10-20% above an all-cash offer) while keeping our debt service manageable. You're also receiving steady monthly income, deferring capital gains taxes through installment sale treatment, and earning interest on money that would have otherwise gone to taxes.

When you add it together—higher sale price, tax deferral, monthly cash flow, and interest income—your net return frequently exceeds what you'd earn from a lower cash price, paying immediate taxes, and reinvesting what's left at market rates. It's about maximizing your total economic benefit, not just the interest rate in isolation.