You’ve Been Told You Only Have Two Options.
You Have Four — and Nobody’s Told You About Them.

💰 Benefit 1 — You Can Walk Away With More Total Money Than Any Cash Offer

Here is something Pace Morby says all the time and it is true — “Why did the seller do a creative finance deal? There were 40,000 reasons why she did it.” Meaning she got $40,000 more than any cash buyer offered her. With seller financing, the purchase price is set closer to market value. You receive monthly payments — principal plus interest — instead of a discounted lump sum. The total you receive over time almost always exceeds what any cash buyer would have paid.

📋 Benefit 2 — You Can Legally Spread Out Your Tax Bill and Keep More Money

This is something almost no one talks about and it is one of the most powerful benefits of seller financing. When you sell a house for cash, the IRS taxes your entire capital gain in the year of sale. That can push you into a higher tax bracket and cost you thousands in one single hit. However, the IRS has a specific rule — called the installment sale method — that changes everything for seller finance deals.

Under IRS installment sale rules, you only pay capital gains tax on the portion of the profit you receive each year. You do not pay it all at once. As a result, you stay in a lower tax bracket, keep more money working for you each year, and pay significantly less total tax in many situations.

This is especially powerful for retirees. A large one-time cash sale income spike can push you into a higher Medicare premium bracket (IRMAA) or affect your Social Security taxation. Spreading the income over years through seller financing prevents that entirely.

Always consult a qualified tax professional for advice specific to your situation. This is educational information, not tax advice.

🛡️ Benefit 3 — You Can Protect Your Credit and Avoid a 7-Year Foreclosure Stain

A foreclosure stays on your credit report for 7 years. It can drop your score by 100 points or more. It can prevent you from getting loans, renting an apartment, and in some cases even certain jobs. With a Subject-To deal, we take over your mortgage payments the moment we close. The foreclosure clock stops immediately. Your credit record stays clean — like nothing ever happened.

Furthermore, selling before foreclosure eliminates the risk of a deficiency judgment — a situation where the bank auctions your home for less than you owe and then sues you for the difference. That means you could lose your house AND still owe the bank tens of thousands of dollars. A Subject-To deal wipes that risk out completely.

Think about what a clean credit record means for your future — the ability to rent, borrow, or eventually buy again. That is worth protecting. And with the right creative deal, it is completely possible even if you are already behind on payments.

📬 Benefit 4 — You Can Turn Your House Into a Monthly Income Stream

Instead of one lump sum — take monthly payments. This is especially powerful for retirees, people on fixed incomes, or anyone who wants predictable cash flow without the headaches of being a landlord. You sell the house. You hand over the keys. You never deal with tenants, repairs, or property taxes again. And every month — a payment arrives in your account. Plus interest.

With seller financing you earn interest on the outstanding balance — just like a bank does. The IRS-set minimum interest rate (Applicable Federal Rate) for 2025 ranges from 4.16% to 4.61% depending on the term. But most seller finance deals are negotiated at higher rates. You go from being a homeowner to being a note holder — and that is a completely different financial position.

A seller finance note also has three potential paydays for you: the down payment at closing, monthly payments over the term, and the balloon payoff at the end. Sellers who understand this structure consistently walk away with more than any cash buyer would have offered.

👨‍👩‍👧 Benefit 5 — Leave Your Kids Money, Not a Mortgage

Here is a sobering fact — 37% of Americans die with an unpaid mortgage. Over 75% of parents plan to leave their home to their children. But nearly 70% of those kids will sell it anyway because of the costs involved. If the house still has a mortgage, your kids inherit that debt too. What was meant to be a gift becomes a financial burden.

A seller finance deal changes this entirely. Instead of leaving your kids a house with a mortgage — you leave them a monthly income stream. The note — the legal document that represents your right to receive payments — is a financial asset. It can be passed to your heirs in your estate plan. The payments keep coming after you are gone. Your kids do not have to deal with property taxes, maintenance, or an inherited loan. They simply receive money every month.

And if your heirs want cash instead of monthly payments, the note can be sold to a note buyer for a lump sum. This gives them complete flexibility. You turn your biggest asset into generational wealth — not generational debt.

Always work with an estate planning attorney to make sure your note is properly included in your estate plan. Done right this is one of the most powerful wealth transfer tools available to everyday homeowners.

🚫 Benefit 6 — You Keep the 5–6% That Would Have Gone to an Agent

No agent is involved in a creative finance deal. That means no 5–6% commission being deducted from your proceeds. On a $200,000 home that is $10,000 to $12,000 you keep. On a $300,000 home that is $15,000 to $18,000. This is money that would have disappeared — gone to agents who get paid regardless of how well the sale goes for you.

Beyond the commissions you also skip the repairs, staging costs, open houses, and months of waiting that come with a traditional listing. Creative financing is faster, cleaner, and more financially beneficial for the right seller.

⚡ Benefit 7 — You Choose the Terms — Not the Bank and Not the Buyer

In a traditional sale you take what the market gives you. In a creative finance deal the terms are negotiated between you and us. The purchase price. The interest rate. The down payment. The length of the term. The balloon payment date. All of it is flexible and structured around what works for your specific situation.

Need cash now but also want long-term payments? We can do that — it is called a hybrid deal. Need to close in 10 days to stop foreclosure? We can do that too. Want to maximize the total you receive over 5 years? We structure the seller finance terms around that goal. There is no one-size-fits-all here. Every deal is built around you.

Most sellers have never heard of this — because most agents can’t do it and make nothing from it. Here is the simple truth: we purchase your property and take over your existing mortgage payments. The loan stays in your name temporarily, but we make every payment from day one. We hold the deed. You are free.

This is the most powerful tool for sellers who are behind on payments, facing foreclosure, have little equity, or need to move fast. The moment we close and take over payments — your credit is protected. The foreclosure stops. You walk away clean.

Subject-To is the right option when:

Seller protection note: In a Subject-To deal the mortgage temporarily remains in your name while we hold the deed and make the payments. We take this responsibility seriously. We can discuss additional protections — including deed-in-lieu agreements and payment monitoring arrangements — that give you peace of mind. Learn more about stopping foreclosure →

Imagine this. Your home is worth $200,000. A cash buyer offers $140,000. You accept — because what else are you going to do? You pay off the mortgage, pay the agent, pay closing costs, and walk away with maybe $110,000–$120,000. That is the typical outcome most sellers accept without question.

Now imagine a different path. We agree to buy your home at $185,000. We make monthly payments to you — principal plus interest — over 5 years. No agent involved. No commissions. You end up receiving $185,000 plus thousands in interest — often totaling over $200,000. On the same house that a cash buyer offered $140,000 for.

That is seller financing. You act as the lender. We make payments to you the same way a buyer would pay a bank — except you are the bank. And because the IRS treats this as an installment sale, you pay taxes gradually on your gains instead of all at once. The longer the term, the more you earn in interest and the more tax-efficient the deal becomes.

Why seller financing gets better the longer it goes:

Seller finance is the right option when:

Maybe you need some cash immediately — moving expenses, paying off a debt, covering a pressing financial need. But you also don’t want to accept a fully discounted cash offer and leave tens of thousands on the table. A hybrid deal gives you both.

We pay you a portion of the purchase price in cash at closing — giving you immediate money to work with. Then we make monthly payments to you for the remaining balance over an agreed term. You get the immediate relief of cash today plus the long-term benefit of ongoing payments and interest.

This structure is completely custom. We build it around what you actually need. The split between upfront cash and future payments is negotiated based on your specific goals. No two hybrid deals look the same — that is the point.

Hybrid is the right option when:

A lease option is an agreement where we lease your property for a set period — typically one to three years — with the right to purchase it at a pre-agreed price at the end of that term. During the lease period we pay you monthly rent. At the end of the term we either purchase the property or the agreement ends.

This is different from a standard rental. Because we have a financial stake in the future purchase, we treat the property as if we already own it. Maintenance, upkeep, and property care are our responsibility during the lease. You collect rent and wait for the eventual sale.

Key terms to understand:

Lease option is the right option when:

Not sure which fits? That is exactly what our free consultation is for.

Is Subject-To real estate legal in Oklahoma?

Yes — Subject-To is 100% legal in Oklahoma and across the United States. The strategy has been used by real estate investors for decades. The key concern most sellers have is the due-on-sale clause in their mortgage — a provision that allows lenders to demand full repayment if the property is transferred. However, the Garn-St. Germain Depository Institutions Act of 1982 (12 U.S.C. § 1701j-3) is federal law that governs exactly when lenders can and cannot enforce this clause. Additionally, most lenders never enforce it in Subject-To deals because the loan is still being paid on time. Thousands of Subject-To deals are completed nationwide every year. Every deal we do is closed at a licensed Tulsa title company with proper documentation. We recommend you consult a real estate attorney before entering any agreement. Read the federal law here →

What is the due-on-sale clause and should I worry about it?

A due-on-sale clause is a provision in most mortgages that says the lender can demand full repayment if the property is transferred without their consent. In theory, a Subject-To deal could trigger this clause. In practice, lenders almost never enforce it — because the loan is still being paid every month. The lender has no financial reason to call a performing loan due. Pace Morby has completed over 2,000 Subject-To deals and has written extensively about this topic in his Wall Street Journal bestselling book “Wealth Without Cash.” The due-on-sale clause is a concern worth understanding — but not worth losing sleep over when working with an experienced investor who has proper protections in place.

My attorney or agent says they’ve never heard of Subject-To. Does that mean it’s not legitimate?

Not at all. Creative financing is a specialized area of real estate investing that most general attorneys and real estate agents are simply not trained in. Their job is to help clients list properties, close standard loans, and handle traditional transactions. Subject-To, seller finance, and other creative structures are investor strategies that operate in a different world. The fact that your agent or attorney hasn’t heard of it doesn’t mean it isn’t legitimate — it means they are not specialists in this area. We recommend you consult with a real estate attorney who has experience with creative finance transactions specifically. They exist — and they will confirm that these are completely valid and legally documented strategies.

Will a Subject-To deal hurt my credit?

No — as long as the payments are being made on time. In a Subject-To deal we take over your mortgage payments. As long as we make those payments consistently, your credit is not affected — the loan still shows as active and current on your credit report. In fact, for sellers who are already behind on payments and facing foreclosure, a Subject-To deal actually protects their credit by stopping the foreclosure process and bringing the account current. This is one of the most significant benefits for sellers in distress.

What happens if you stop making payments on a Subject-To deal?

This is a fair and important question and you should ask it before entering any Subject-To agreement. Since the mortgage temporarily remains in your name, if payments stopped your credit could be affected. This is why it is critical to work only with reputable, experienced local investors who have a track record of honoring their commitments. We take our payment obligations seriously and have additional safeguards we can discuss — including deed-in-lieu agreements, payment monitoring arrangements, and escrow protections — that give you legal recourse in the unlikely event of non-payment. We strongly recommend all sellers consult with a real estate attorney before closing any Subject-To deal.

How does the IRS treat seller financing? What about taxes?

The IRS classifies seller-financed sales as installment sales. Under the installment sale method (reported on IRS Form 6252), you only pay capital gains tax on the portion of the profit you receive each year — not all at once in the year of sale. This can result in significant tax savings by keeping you in a lower bracket, avoiding income spikes that affect Medicare premiums (IRMAA) or Social Security taxation, and allowing more of your money to compound over time. The interest income you earn on the note is reported separately as ordinary income. Always consult a qualified tax professional for advice specific to your situation.

Can I do seller financing if I still have a mortgage on the property?

Seller financing works most cleanly when you own the property free and clear. If there is still a mortgage, it gets more complicated because of the due-on-sale clause in your existing loan — the sale could trigger your lender to demand payoff. In that case a Subject-To structure or a hybrid deal may be more appropriate. This is exactly why we have a consultation with you first — to understand your specific situation and find the structure that actually works given your existing loan, your equity position, and your goals.

Can I sell my seller finance note later if I need cash?

Yes — a seller finance note is a financial asset that can be sold to a note buyer for a lump sum of cash. Note buyers (also called note investors) purchase performing real estate notes at a discount to their remaining value. This gives you the flexibility to convert your monthly income stream into a lump sum if your circumstances change. Your heirs also have this option if they inherit the note. Always consult with a financial advisor or note broker to understand the current market for notes and what you might receive.

Can I leave a seller finance note to my children in my estate?

Yes — a seller finance note is a legal asset that can be included in your estate plan and passed to your heirs. The monthly payments continue going to whoever holds the note after you are gone. Instead of leaving your kids a house with a mortgage attached — which 37% of Americans do — you leave them a monthly income stream. Your heirs can keep receiving payments, sell the note for cash, or let it run to term. Work with an estate planning attorney to ensure the note is properly titled, documented, and included in your plan.

What protections do I have as a seller in a creative finance deal?

Every creative finance deal we do is closed at a licensed Tulsa title company with proper legal documentation. In a seller finance deal you hold a promissory note secured by the property — meaning if we default you have the right to foreclose and reclaim the property. In a Subject-To deal we can structure additional safeguards such as deed-in-lieu agreements. All agreements are legally binding contracts. We strongly recommend every seller consult with a real estate attorney before signing anything to make sure they fully understand their rights and protections.

Why hasn’t my real estate agent ever mentioned any of this?

Real estate agents earn their income from commissions on listed properties — typically 5–6% of the sale price paid at closing. Creative financing deals do not involve traditional agent commissions. As a result, most agents either don’t know how to structure them or have no financial incentive to bring them up. This is not a conspiracy — it is simply how the industry is set up. Agents are trained to list and sell. Investors who specialize in creative finance are trained to structure deals. They are two different skillsets. We bring this up because we can actually do it — and because you deserve to know all your options.

How long does a seller finance deal typically last?

The term of a seller finance deal is completely negotiable and can be structured for as long or as short as makes sense for your goals. Common terms range from 3 to 10 years. A shorter term means you receive your money faster. A longer term means you earn more in total interest. Many deals also include a balloon payment — a lump sum payoff at the end of the term. We structure the term around your specific financial goals and timeline during the negotiation process.

Can I do a creative finance deal if I am already in foreclosure?

Yes — Subject-To is specifically designed for this situation. We can often close fast enough to stop the foreclosure process before it completes. The moment we take over the payments the foreclosure clock stops. Your credit is protected. However timing is everything — the sooner you reach out the more options we have available. Learn more about our foreclosure help page →

How do I know which creative finance option is right for me?

The right option depends entirely on your specific situation — your equity, your timeline, whether you need cash now or later, your tax situation, and your long-term financial goals. The best way to figure it out is a free no-pressure conversation with us. We listen to your situation, walk through all four options honestly, and give you our recommendation. You are never obligated to accept anything. Call us at (918) 300-3787 and let’s figure it out together.