Financing for "Guaranteed Sales"

I am a real estate agent in Austin. Many teams provide “guaranteed sales” programs to sellers. The team buys the seller’s home for 85-95% of market provided the seller moves up to another home. The purpose of the guaranteed sale is to solve the seller’s problem of having to sell the old home before they buy a new one. This seems to be a highly successful tactic.

I’m not sure exactly what the agent’s charge for the program, but most use lines of credit. I was wondering if there was a way I can get private money or a line of credit to provide this program since I don’t think I can just go to a bank and get a half million dollar line of credit. The investor could specify the guidelines of homes that qualify and then perhaps charge points on the buy.

Are there any investors out there who would loan money for this? My thoughts is that it would be a long-term relationship.

You might check out Wachovia bank they are doing business lines of credit

You might also deal with a Federal Grant.

Also try Private investor or HML I just do not know to many that will go that high of LTV though

How about title seasoning issues when you sell the “Guaranteed Sale” home?

Even though you’re buying at a relatively high price and may only get a 5% - 10% gross spread, when you go to sell the property ultimately…won’t you face title seasoning issues with the ultimate buyer’s lender, if you’re selling within 6 - 12 months?

The program seems to be a great “carrot” to do deals, and I applaud you.

Just curious what your exit strategy is once you buy the home.

I’m not sure about title seasoning. I do know that some investors were willing to buy the note from me and then offer owner financing from people who can’t otherwise qualify.

There is an agent in town who has a similar program and it seems sellers really like getting pretty close to market value. I’m not sure how you get around title seasoning issues besides just offering owner financing or a lease option.

The best way to get money quick and without credit checks and hassle is hard money. In the texas area I would recommend Rob Barney at

Agreed, but you’re not going to get it at 85% - 95% LTV.

Having a clear exit strategy seems paramount, regardless of how the financing is structured.

Still not clear on how the guaranteed sale houses are acquired. Taking title, or no? You mentioned selling a note, or maybe you’re assigning a contract from the seller to an investor?

Great concept if you can make it work.

From what I’ve seen with other brokers, they use a line of credit to purchase the home and take title, but this is only if they don’t sell the house before the seller closes on the home they are moving up to.

They then try to sell the house at market. One strange thing I’ve heard is that they give the seller any profit they get on the sale of the home minus repair costs. I wonder if they’re doing this to avoid capital gains and to create good will with the seller.

Here are some examples: