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Seller financing & refinance takeouts.

The full creative seller financing playbook: seller-carry notes, subject-to, wrap-around mortgages, the Morby method, sub-to + carry combos. Direct lenders on Ask Speedy provide the refinance takeouts that replace seller notes with conventional financing at stabilization.

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Structures

Five seller financing structures.

Seller carry (owner financing)

Seller acts as the lender — promissory note + deed of trust. Buyer pays seller directly. Common rate 5-9%, balloon 5-10 years typical.

Subject-to (sub-to)

Buyer takes title; seller's mortgage stays in place. Buyer pays the existing mortgage. Refinance takeout removes seller eventually.

Wrap-around mortgage

New loan "wraps" the existing one. Buyer pays the wrap lender; that lender pays the underlying note. Used when existing rate is below market.

Morby method

Sub-to + seller carry combined. Take title subject-to existing mortgage; seller carries second-position equity note. Low/zero down acquisition.

Sub-to + carry + bridge

Stack: subject-to the senior, seller carries some equity, bridge funds the gap. Refinance takeout from direct lender at exit.

See also: Deal Structures for the full creative financing playbook.

FAQ

Seller financing, answered.

What is seller financing in real estate?
Seller financing (also called owner financing or seller carry) is when the seller acts as the lender. The buyer makes payments directly to the seller per a promissory note + deed of trust. Negotiable rate, term, and balloon. No bank or direct lender involved in the initial transaction.
How do direct lenders fit into seller-financed deals?
Direct lenders typically come in on the refinance takeout. The buyer holds the seller-carry note for a period, then refinances to a direct lender (DSCR, hard money, or perm) — paying off the seller and replacing the seller note with conventional financing.
Is seller financing legal in all states?
Yes, seller financing is legal in all 50 states, but specific structures (subject-to, wraps) have state-by-state regulatory considerations. Owner-occupied seller financing falls under Dodd-Frank rules with stricter requirements. Investor-to-investor seller financing has more flexibility.
What is the Morby method?
The Morby method combines subject-to acquisition with seller-carry financing. Buyer takes title subject to the existing mortgage, and seller carries a second-position note for the remaining equity. Combines low-down acquisition with seller-financing flexibility. Refinance takeout from direct lenders at stabilization.

Seller financing takeouts, sourced direct.

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Updated 2026-05-10