Subto Mentorship with Pace Morby
Gator Lending with Pace Morby
Transaction Coordinator certified with Pace Morby
SPRE Investments TC Solutions
Provides transaction coordination services to support buyers and investors in their creative finance real estate acquisitions.
Standard cash transaction: A property is purchased with cash or hard
money, with no financing contingency.
Standard financed transaction: A property is purchased with financing from
a traditional bank with a financing contingency.
Wholesale transaction: A property is purchased by an investor who doesn’t
intend to close it for their portfolio. There is an A contract from the
seller to the investor and a B-C contract from the investor to the end buyer,
who could then use the property as an investment, primary, or secondary
residence.
Lending (Private and Short Term): The process of loaning money for short-term
transaction funding or long-term secured financing. Lending varies from
investing because investors gain ownership or equity, whereas lenders do not,
receiving only a flat return or interest.
Loan Sponsorship: The process of acting as the qualifying entity or person
to obtain a loan for an investment project with a partner.
Seller Carry A property owned free and clear with the seller acting as the
bank to “carry” the loan for a new buyer.
SubTo: A property is purchased with the seller’s existing lien(s) staying in
place, with the buyer continuing payments on behalf of the seller while
taking title and ownership.
Hybrid: A property is purchased with the seller’s lien(s) staying in place,
AND all or a portion of the seller’s equity is held as a second position lien, a
“hybrid” of seller carry and SubTo.
Novation: This agreement is often used when a seller has the desire to profit
from a home renovation, but they do not have the means.
The investor will then partner with the seller to renovate the house and
share profits on the sale.
Wrap-Dispo: This type of transaction usually occurs after an investor has
bought a non-cash-flowing property and needs to build their own
equity. The investor buys the property subject to the original seller's loan
and then “wraps” that loan into a new loan they have built on their own
equity into an end buyer to purchase the property.
Servicing: A third-party company that receives monthly payments from
buyers and disperses funds to lenders, taxes, insurance, and any additional
obligations.