Creative financing

Creative financing: seller financing, subject-to, and lease options

Creative financing can make deals work when traditional loans don't, for buyers, sellers, and investors alike. I help clients structure and negotiate seller-financed and other creative deals, with real estate attorneys handling the legal work.

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  • Daniel EllingtonLicensed Illinois Real Estate Broker
  • Infiniti PropertiesBrokerage since 1991, Homewood office
  • IL License #475211812Chicagoland and throughout Illinois

Who this is for

Sellers

Owners who own free and clear and want monthly income, a higher price, or a faster sale.

Investors

Buyers looking for low-down-payment acquisitions and better terms than banks offer.

Buyers who can't get a loan yet

Buyers rebuilding credit or self-employed buyers who need a path to ownership.

How it works

  1. Explore the options Seller financing, subject-to, lease options, and hybrids.
  2. Run the numbers Price, down payment, rate, term, and balloon timing that work for both sides.
  3. Negotiate terms Written offers with clear terms and protections.
  4. Attorney-drafted documents Notes, mortgages, and agreements prepared by real estate attorneys.

What I do for you

  • Offer structuring for seller-financed purchases
  • Analysis of whether terms cash flow for the buyer
  • Negotiation with sellers who are open to terms
  • Coordination with real estate attorneys and title companies
  • Experience with seller-financed multifamily deals

Know the risks

Subject-to deals leave the seller's existing loan in place, and most mortgages include a due-on-sale clause that lets the lender call the loan if the property is transferred. Illinois also has specific consumer protections for installment contracts, especially for homes in Cook County.

Creative financing carries real legal and financial risk for both sides. Every deal should be drafted and reviewed by a real estate attorney, and sellers should understand exactly what they're agreeing to.

Common questions

What is seller financing?

The seller acts as the lender. The buyer makes a down payment and monthly payments to the seller under a promissory note secured by a mortgage, usually with a balloon payment after a set number of years.

What does buying subject-to mean?

The buyer takes ownership while the seller's existing mortgage stays in place, and the buyer makes the payments. It can offer low upfront cost and a low interest rate, but the loan stays in the seller's name and the lender may call it due under the due-on-sale clause.

What is a lease option?

A lease with the right, but not the obligation, to buy the property at an agreed price within a set time. Part of the rent or an upfront option fee may go toward the purchase.

Is seller financing a good idea for sellers?

It can be: monthly income, a potentially higher price, and a broader pool of buyers. The risks are buyer default and being paid over time instead of all at closing. An attorney should draft the documents and a solid down payment helps protect you.

Are there special rules for installment contracts in Illinois?

Yes. Illinois has specific requirements for installment sales contracts on residential property, including in Cook County. Have a real estate attorney review any contract for deed or installment arrangement.

This page is general information, not legal, tax, or lending advice. Consult a real estate attorney, CPA, or lender about your situation.

Other investor strategies

Wholesaling

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Novations

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Fix and flip

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BRRRR

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Multifamily rentals

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House hacking

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Out-of-state investors

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All investor services

Investor overview

Want to explore a creative deal?

Call or text Daniel directly, or send a message. Most inquiries get a same-day response.

708-625-8788
Infiniti Properties, 2401 183rd St, Homewood, IL 60430
Brokerage 708-206-3000  |  IL License #475211812

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What Our Clients Say About Us

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Daniel Ellington: Chicago’s Best Real Estate Broker
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Adam Bevan
Adam Bevan
11 months ago

Dan was an excellent representative for us and I wouldn't hesitate to work with him again

Lorenzo Douglas
Lorenzo Douglas
8 months ago

Daniel has been amazing for me as an out of state investors. Very response, pretty decent comps. He's gone above and beyond for me.

Jared Rowntree
Jared Rowntree
7 months ago

Daniel was absolutely phenomenal during our house hunt and closing. Any time an issue came up, Daniel took it in stride and helped everybody involved to have a smooth process. He is wildly friendly and knowledgeable, and was invaluable to us as First Time Homebuyers; he kept us informed and up to date the second anything changed. I wouldn’t hesitate to hire Daniel again for my next house, and the next ones after that.

Michael Van Kley
Michael Van Kley
4 months ago

Daniel was great. I would use him again.

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