CREATIVE FINANCING when property is listed with a real estate agent?

I have been studying and working with a coach to begin my real estate investor career. I have looked at several properties and have quite a few to choose from (of course I have not done complete due diligence yet). I haven’t been able to find properties in my area yet though that are FSBO. I have found several under FMV that are listed with agents. I do not money to pay for these through conventional means so I want to purchase using OPM - preferably subject to since I do not know of any private sources to get money from yet since I have just began networking and meeting people.
Before I plunge in and do all of the due diligence and research I wanted to see if subject to is an option when a property is listed with an agent or if this is not something that happens.
And if this doesn’t happen, what are other creative financing possibilities that would work with a property listed with an agent? I have been looking for a month for FSBO by looking on a ton of websites, driving around countless hours, etc. and just haven’t come across anything that is in the bread and butter area or places that are not warzones in my area. I live in St. Louis. Thank you for your help!


The answer is “No.” You will not be buying sub2 through an agent. Forget that. Really. Agent’s will completely run from that scenario, if the agent’s broker doesn’t reject your financing scheme in the first place.

If you don’t have any money, then you’ll need to partner with someone who does, or perhaps depend on VERY short term seller financing. Many sellers are willing to carry 100% financing if it’s not going to be long before they get all/most/part of their money.

10% down seems to be a magic number in my experience. However, it doesn’t always have to be MY money. If could be from someone else; partner, mom and dad, friend, whatever.

That said, if you’ve got 10% to put down, agents are more apt to push your offer, since they’ll get paid… and the seller gets some spending money…and the closing costs are covered.

Frankly, if the seller is financing you, and there is a loan on the property…you’ll still be doing a sub2 deal in effect. It will probably be disguised as either a Land Contract, or All Inclusive Trust Deed (A.I.T.D.), or Land Trust, etc.

A straight forward sub2 deal is where you take a naked title, subject to the existing liens. This is not the same thing as buying through a Land Trust, etc.

Lastly, sub2 doesn’t mean “no money.” It takes money to find the good deals, and it takes some money (not necessarily a lot…) to close on the deal.

Money to close doesn’t mean down payments. I’m talking about giving the seller enough cash to put up a security deposit on a place to rent, or money to move (which might include money to rent another house), or just a small amount of spending money.

It’s not unusual for me to give a seller $2,000 to move. However, that’s not my first offer. My first offer is based on what I discover the seller’s financial options are/were and motivation for selling is. Then I work from there. Sellers have agreed to accept twenty dollars from me as long as I covered all their closing costs.

Bottom line, as far as I’m concerned the more creative you need to be, the more problems you need to look at solving. If the house is a wreck, and nobody will get new financing on it, in it’s present condition, then why not ask for temporary financing from the seller, in return for slightly more than a cash price offer, and then fix the place, and get it refied/sold/flipped, etc.

There’s so many ways to go about this that you just need to focus on solving problems.

PM me, since my links always get removed, and I’ll forward you 50 ways to do nothing down deals that I got from a guru over 25 years ago that still rocks like a star.