Hello, my name is Mark, and I am reaching out on behalf of Honey Home Offers

I am currently preparing an offer for your listing.

My offer will be ABOVE your asking price and can be closed within 10 days and less, without bank finance contingency.

"So, what’s the catch?"

I can’t “just send you my number”.

Instead, I need to engage you in a conversation in order to collaborate and structure a win-win deal that benefits both of us.

This kind of conversation is known as “creative finance”.

“Not Interested.”

That’s okay creative fiance is not for everyone.Before you go please understand that most sellers misunderstand what creative finance means period.

1. “creative finance” DOES NOT EQUAL “seller finance”

   Creative finance is an approach that may, or may not, involve seller finance; while seller finance is just one of the many tools in the creative toolbox. This is worth emphasizing because seller finance DOESN’T work for most people, most of the time; at least not by itself. That said, creative finance gives us many other options to consider when seller finance isn’t the solution, or can only be part of the solution.

2. “creative finance” DOES NOT EQUAL “sketchy”

   In fact, it’s usually the opposite! Recent interest rate hikes and declining property values have changed the game and enabled creative finance to create better outcomes for most sellers in most situations (as compared to “bank financed” or “cash only” options). This is also why creative finance is rapidly gaining popularity amongst all kinds of sellers, including busy professionals and savvy investors. It’s no longer just for “motivated sellers” and “tired landlords”.

3. “creative finance” IS entirely legal and commonplace"

   There is a standardized purchase agreement addendum available in all 50 states, agents always receive their rightfully earned commission, and creative transactions have been taking place since the country was founded. In fact, creative finance is even more common than traditional finance in certain parts of the country, and also for certain asset classes (such as farms and commercial buildings).

"Okay, how might I benefit."

Generally speaking, there are many possible benefits, but not all of them apply in all situations:

• Increased Purchase Price: Sellers can gain a significantly higher overall purchase price.
• Larger Commission: Agents can gain a significantly larger commission.
• Faster Close: Transactions can close in a matter of days (rather than weeks or months).
• Less Pain: Sellers can avoid lost rent, short-sale, and/or foreclosure.
• More Closed Deals: Agents can avoid lost listings (for difficult-to-sell properties).
• No Contingencies: Negotiated deals rarely “fall through” at the last minute.
• Earned Interest: If desired, sellers can earn interest on any amount not paid immediately at close.
• Reduced Taxes & Wealth Transfer: If desired, sellers can spread payments out over time, potentially reducing tax liability, and/or transferring wealth to family and friends.

“Okay, what would a conversation look like?”

Creative finance is a collaborative process, not an adversarial negotiation.

By way of analogy, rather than fighting over who gets to eat more of the pie, we all get to chat openly and honestly in order to learn that one of us likes the crust and the other likes the filling; and then we both get to eat a whole pie portion of the thing we care about most.

You will control and steer the conversation, not us.

We’ll ask you a few questions that sound like: “would you rather have THIS or THAT”... e.g. would you rather receive more money spread out over a longer period of time, or less money in a shorter period of time, etc.

We’ll ask about your existing loans and liens… how much debt remains, what your monthly payments look like, whether each loan is amortized or interest-only, etc. .

We’ll ask about operating expenses… easy stuff like HOA fees, utilities, etc.

And, in the end, your answers will help us all understand whether, for example, you prefer lease option, subto, or seller finance, some combination of all three, or something else entirely (these terms are all explained below).

And, here are a few examples to help illustrate what’s possible.

Don’t worry if you don’t immediately see an example below that matches your specific situation. No matter what your situation is, the chances are that we have the experience, knowledge, and tools required to structure a deal that’s right for YOU.

1. The Distressed Seller (an example of “subto”):

   Jon lost his job shortly after purchasing a home just one year ago with only 5% down. As a result, he held a very low equity position, which meant that traditional offers required him to come out of pocket at least $30,000. Instead, we used a technique known as “subto” (short for “subject to existing mortgages”) which allowed him to exit the property without paying a penny. Rather than paying off the existing mortgage and replacing it with a new one in our name, we kept the existing mortgage in the seller's name and took over the responsibility for making the mortgage payments. We also paid all closing costs for both parties, including the agent commission, transaction fees, escrow costs, etc.

2. The Working Professional (an example of “lease option”)

   Laura chose to relocate during Covid. She considered holding onto her property and becoming a landlord, but the thought of traveling back and forth was unappealing. She also worried about lost rent during vacancies, and she didn’t want to hire a property manager (who could easily fail, and probably cost more than her net rent). Together, we decided that the best strategy was a master lease agreement with an option to purchase after 10 years. We gave her $20,000 at close (so she could buy a new home in her new hometown), became the landlord, staged the property for airbnb, managed the property, and now keep only ~$200 each month in order to build up an emergency fund for repairs and unexpected expenses. The rest is sent to Laura. She is delighted because she gets a check each and every month (which she calls “mailbox money”) and doesn’t have to worry about occupancy, repairs or anything else. Additionally, in a few years, we’ll be able to refinance the property and buy her out of the property free and clear.

3. The Savvy Investor (an example of “subto” + “seller finance”)

   Ruan purchased a home in 2010, before the market exploded, and quickly built up a lot of equity. Then, the market collapsed in 2022. He didn’t need to sell for any particular reason, but he didn’t like the direction the market was heading and wanted to get out. We took over the payments on Ruan’s existing mortgage, began paying $532 each month (as a 6.25% interest-only payment), and will pay one last lump sum of $103,000 in 7 years. Ruan loved the deal for several reasons: 1) he was able to sell the home for $50,000 more than he would have been able to otherwise, 2) he was able to get of the market befohttps://market.honeyhomeoffers.com/creative-offerre his equity slipped away, 3) he didn’t have to execute a 1031 exchange, 4) he didn’t have to pay any capital gain taxes, 5) he didn’t have to become a landlord, and finally, 6) he was able to secure a fixed rate of return on his profit from the sale (i.e. 6.25% interest) without risking it all by investing in the volatile stock market… where he had lost half his savings the year before.

4. The Tired Landlord (an example of “bank finance” + “seller finance”)

   Steffanie owned a million dollar rental property free and clear, but was tired of dealing with tenants and hoped to spend a year in Europe to kick off her retirement. She also needed roughly $300,000 in order to help a family member with healthcare expenses. We obtained a new bank loan for $350,000, which we used to pay all the closing costs for both parties and give Stephanie $300,000 at closing. Then we began paying Stephanie exactly $4,567.13 each and every month for 50 years. Why 50 years? Because, when asked what she valued most, Stephanie said she would rather receive a slightly lower monthly payment for a much longer period of time. She wanted to avoid ever worrying about her retirement “ending”, and she also wanted to gain the ability to easily transfer wealth to her children (by changing the recipient of the monthly check down the road).

These are just a few examples, and it’s probably worth highlighting that only two of these examples involved seller finance, neither of which were “full carry” -> meaning neither were 100% seller financed.

For other sellers, we have used land contracts, executive contracts, and many other various tools to structure deals which met THEIR specific needs and preferences.

More than likely, we can do the same for you.

“So, then, is there anyone who should NOT consider creative finance?”

Absolutely. There are at least three kinds of sellers that creative finance doesn’t work for:

1. Sellers that are eager to become landlords and deal with tenant problems. These people should not be selling in the first place.
2. Sellers with solid equity positions (>= 20%) who absolutely need to use the vast majority of their earnings to do something in the immediate future (like buy another home or pay off some other debt). To be clear, needing to buy another home is NOT a problem in-and-of-itself, even if you want to purchase right away; the deciding factor is whether you need A LOT of money from this sale in order to finance your next purchase.
3. Sellers who have big, bad loans with terms that are worse than those available to buyers like us at this very moment. To clarify, a couple small loans with high rates usually don’t kill a deal. The problem generally becomes too big to solve when these loans exceed ~ 20% of the property value, give or take. But even then, there are options.

“What’s in it for Honey Home Offers?”

The last section kinda gave it away already.

Experienced investors never use cash to hold properties. This means buyers like us need to secure loans just like everyone else, even when we acquire using cash.

And, it’s usually faster, easier, and just better overall for us to make payments on existing loans (think “subto” and “lease option”) and/or get a loan from you (think “seller finance”) rather than jump through hoops with 3rd party banks or hard money lenders.

“Say I’m Interested, what happens if you stop making payments?”

No matter how we structure the transaction, you’ll get the house back AND get to keep every single dollar we ever paid… IF WE MISS EVEN ONE PAYMENT.

Seriously.

No need to suffer a foreclosure process or even hire a lawyer. We can preemptively sign a deed that gives you back possession of your house in the very same transaction where we take possession… and then we can store that deed in escrow so that it automatically transfers to you in the unlikely event that we ever miss a payment (we won’t).

Here’s why this is so important:

Banks and other public lenders (like credit unions) are subject to regulations which make it difficult for them to foreclose on, or hold, property. In turn, this causes banks to perceive “default” (aka “failure to pay”) as a risk, and they have to jack up their rates to compensate for that risk. Rates that make it difficult for buyers like us to “cash flow” properties.

But sellers like you aren’t subject to regulation. This means that it’s entirely possible and commonplace for you to stipulate in the purchase agreement that you get the house back if we miss even one payment. And, while you might think that we (Honey Home Offers) would be opposed to this kind of clause, we are completely okay with it… because it allows us to make a trade… we can give you security and peace of mind in exchange for favorable loan terms (meaning better terms than we can currently get from the bank).

If you were ever wondering why a win-win conversation is even possible, this just might be the simplest answer. We all stand to benefit from this conversation because we can create a risk free situation for you, and we can’t do the same thing for a bank.

“If we do this, can I qualify for a new loan and buy another home?”

This is probably the craziest thing you’ll read today… but, drumroll please… the answer is YES!!!

It’s a little hard to believe, but when we purchase subto, we can make payments via what’s known as a “professional debt servicing company”; and when we do this, 75% of the debt associated with your existing mortgages will be immediately WIPED OUT when you apply for a new loan. Then, after we make payments for 12 months, that 75% becomes 100%.

Feel free to read that last part again. It’s nuts.

It even gets better. Because your name remains on the mortgage, our payments continue to BUILD YOUR CREDIT FOR YOU. Even though the debt is there, banks just pretend it doesn’t exist when you apply for a new mortgage.

Again, absolutely nuts… and exciting!

Conclusion

With all this in mind, I kindly request a three-way call. I hope this information sparks constructive dialogue and the opportunity to explore creative options that may benefit all parties involved.

Thank you for your time and consideration. I look forward to the possibility of working together on this exciting investment opportunity!

Best regards,

Mark

Honey Home Offers

[email protected]

(213) 602-8058

1968 S. Coast Hwy #2253 Laguna Beach, California 92651