Question 1

What is a creative offer in real estate?

Accepted Answer

Any offer that wins on financing terms instead of price alone — most often seller financing, but also wraps, subject-to, and lease options. Instead of competing on price like a cash buyer, you compete on what the terms are worth.

Question 2

What is "terms value" and why does it matter?

Accepted Answer

It's the dollar amount that below-market seller-financing terms are worth compared to a market-rate loan on the same property, discounted to today's dollars. It's the honest way to answer "how much is this rate actually saving me?"

Question 3

How do I figure out how much I can overpay using better-than-market terms?

Accepted Answer

Max financed overpay answers exactly that: the extra price you could roll into the note at these terms and still break even against a market-rate loan at the original price. Offer less than that ceiling and the gap is your margin.

Question 4

Do I get the full terms value if I sell or refinance early?

Accepted Answer

No. The value of a below-market rate builds up month by month, so exiting early — through a sale, a refinance, or a balloon — only banks part of it. That's why this tool shows the value at your expected hold separately from the value at full term.

Question 5

What's the difference between interest-only and a balloon here?

Accepted Answer

Interest-only is an entry option — the balance doesn't move for a period at the start. A balloon is an exit option — the balance comes due at a set date. You can combine both.

Question 6

What market rate should I use for comparison?

Accepted Answer

The rate a borrower with average credit could get on a conventional loan of the same term — a public mortgage-rate survey is a reasonable reference. Add roughly 0.5-1.0% for an investment property. Too low a rate overstates your terms value; too high understates it.

Question 7

What happens if the buyer defaults on a seller-financed note?

Accepted Answer

The seller can foreclose, the same as a bank would. A meaningful down payment gives the buyer real skin in the game and is the seller's main protection.

Instant Creative Offer Calculator