Real estate investors have two primary paths to profit: buying properties for ownership and equity, or controlling properties for cash flow and optionality without the burden of ownership. Brian Gibbons of REISkills teaches that in the Seller Financing Section of real estate, “the deal is in the finance terms,” allowing investors to control beautiful houses in beautiful neighborhoods using little or no money or credit.

This guide covers both categories — the specific techniques, how they work, and when to use them.

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Buying Strategies

These techniques focus on acquiring ownership of a property. Each has different capital requirements, risk profiles, and exit strategies.

1. Buy “Seller Gets a New 1st Mortgage” then Sub2 Purchase

In this strategy, the seller obtains a new first mortgage on the property, and then the investor purchases the property subject-to that new loan. The seller walks away with cash from the refinance, and the investor takes over payments without formally assuming the loan.

How it works:

• Seller refinances the property, pulling out equity and creating a new first mortgage
• Investor purchases subject-to the new loan, taking control of the property
• Seller receives cash at closing and is relieved of the property management burden
• Investor gets a low-interest, fixed-rate loan already in place

Best for: Sellers who need cash but want to avoid traditional sale timelines; investors who want built-in financing.

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2. Buy Cheaply with Private Lender

Private lenders are individuals or small companies that lend money for real estate deals. They are typically faster and more flexible than banks, though rates are higher.

How it works:

• Find a private individual with capital seeking higher returns than traditional investments
• Negotiate terms directly — interest rate, points, term, and collateral
• Close quickly without bank underwriting or appraisal requirements
• Use the funds to purchase properties at a discount

Best for: Investors who need speed and flexibility; deals that don’t fit traditional lending criteria.

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3. Buy Contract For Deed

A contract for deed (also called a land contract or installment contract) is a purchase agreement where the buyer takes possession and makes payments, but the seller retains legal title until the contract is fulfilled.

How it works:

• Buyer and seller agree on a purchase price, down payment, and monthly payment
• Buyer takes possession and makes payments directly to the seller
• Title transfers only after the final payment is made
• Seller retains legal ownership during the contract period

Key elements of a land contract include the parties, legal description, price and payment terms, buyer’s responsibilities, seller’s right to mortgage, seller’s responsibilities, assignment of the contract, and default provisions.

Best for: Buyers who can’t qualify for traditional financing; sellers who want income and tax deferral.

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4. Buy Rehab with Hard Money Lender

Hard money lenders provide short-term, asset-based loans for fix-and-flip projects. They focus on the property’s value rather than the borrower’s credit.

How it works:

• Lender provides 70-90% of purchase price and up to 100% of rehab budget
• Loan is capped at 65-75% of After-Repair Value (ARV)
• Rehab funds released in draws as work is completed and inspected
• Higher interest rates (10-14%) and shorter terms (6-18 months)

Best for: Experienced flippers with capital reserves and a clear exit strategy.

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5. Buy Retail – Rehab Deal

This strategy involves purchasing a property at or near market value, then renovating it to sell at a premium. It requires strong renovation skills and market knowledge. Retailing is the most difficult section, but you can make the biggest paydays by buying properties, fixing them up, and then selling the property to a homebuyer.

How it works:

• Purchase a property that is priced fairly but has value-add potential
• Renovate to maximize appeal to retail buyers
• Sell at the high end of the market for the neighborhood
• Profit comes from renovation value creation, not deep discounts

Best for: Investors with renovation expertise in strong seller’s markets.

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6. Buy Seller Carry Mortgage

Also called owner financing, this is when the seller acts as the bank, financing all or part of the purchase price. The buyer makes payments directly to the seller.

How it works:

• Seller and buyer negotiate price, down payment, interest rate, and terms
• Seller carries a mortgage or deed of trust against the property
• Buyer makes monthly payments to the seller instead of a bank
• No bank qualification, no origination fees, no appraisals

Best for: Buyers who can’t qualify for bank loans; sellers who want interest income and tax deferral.

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7. Buy Sub2-Land Trust

This combines a subject-to purchase with a land trust structure. The property is placed into a land trust, which holds title while the investor controls the property and makes payments.

How it works:

• Property is deeded into a land trust with the investor as beneficiary
• The existing mortgage remains in the seller’s name
• Land trust can help avoid triggering due-on-sale clauses under the Garn-St Germain Act
• Investor controls the property and makes payments

Best for: Investors seeking additional privacy and potential due-on-sale protection.

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8. Buy Wholesale Flip

Wholesaling involves contracting a property at a discount and assigning the contract to another buyer for a fee, without ever taking ownership. In the Wholesaling Section, you are able to flip properties for a quick profit without needing credit, money or doing any repairs.

How it works:

• Find a motivated seller willing to sell below market value
• Contract the property with an assignment clause
• Market the contract to end buyers (fix-and-flippers, landlords)
• Assign the contract for a fee

Key contract language: The pro-investor framework uses “John S. Doe and/or Assigns” on the identity line, allowing you to assign the contract for a fee without needing the seller’s permission. The earnest money can be structured as a Non-Interest Bearing Promissory Note, preventing your working capital from being tied up during escrow.

Best for: Investors with strong marketing and negotiation skills but limited capital.

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9. Buying Side – Analyzing Property for Purchase

Before any purchase, thorough analysis is essential. This isn’t about what the listing says — it’s about what the numbers actually reveal.

The 70% Rule for Fix and Flips:

Key analysis steps:

• Verify the data: Listing information is often wrong, incomplete, or misleading
• Check expenses: Utilities, taxes, insurance
• Identify motivation: Price reductions, multiple listings, delinquent taxes, foreclosure filings
• Run both LTC and ARV numbers

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Controlling Properties

Controlling a property means having the right to use, profit from, or purchase it without owning it. These strategies require less capital and carry different risks than ownership. In the Seller Financing Section, you have the ability to control beautiful houses in beautiful neighborhoods using little or no money, or credit. And, the nicer and more expensive houses can offer the larger spreads and profits.

1. Control with Lease Purchase Agreement

A lease-purchase agreement (also called lease-to-own) gives the tenant-buyer the obligation to purchase the property by a set date.

How it works:

• Tenant-buyer pays an option fee and monthly rent
• Buyer is obligated to purchase by the end date
• If buyer fails to perform, they face penalties
• Seller has a “guaranteed” sale

Best for: Sellers who want certainty of sale; buyers who need time to improve credit.

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2. Control With Option

A lease option gives the tenant-buyer the right but not the obligation to purchase. This is a unilateral contract — the buyer can walk away by forfeiting the option fee.

How it works:

• Investor pays option fee for the right to purchase at a set price within a set timeframe
• Investor can assign the option or exercise it
• If numbers work, investor exercises; if not, they walk away
• Best structured as two separate agreements: a lease and an option

Option agreements give investors the right to buy a property later while controlling it today. This works well when sellers need time to move, settle a family matter, or finish personal obligations.

Best for: Investors who want to control property with minimal capital and limited downside.

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Comparison Table: Buying vs. Controlling

Technique	Capital Needed	Ownership?	Primary Benefit
Sub2 with New 1st	Low	Yes	Built-in financing
Private Lender	Medium	Yes	Speed & flexibility
Contract for Deed	Low-Medium	Eventually	No bank qualification
Hard Money Rehab	Medium-High	Yes	Quick funding for flips
Seller Carry	Negotiable	Yes	Direct seller terms
Sub2-Land Trust	Low	Yes (beneficial)	Privacy & protection
Wholesale Flip	Very Low	No	Assignment fees
Lease Purchase	Low	Eventually	Guaranteed sale
Lease Option	Very Low	No (right to buy)	Optionality

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⚠️ Risk Warnings

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Key Takeaways

• Buying strategies range from deep-discount wholesale flips to retail rehab deals — each requires different capital, expertise, and risk tolerance
• Controlling properties through lease options and lease purchases lets you profit without ownership, using minimal capital
• In the Seller Financing Section, the deal is in the finance terms — not just the price
• The pro-investor framework uses “and/or Assigns” language and promissory note earnest money to maximize flexibility
• Land contracts and land trusts are effective tools for quietly transferring ownership and preserving low-interest rate loans
• Always use an attorney and understand your state’s specific rules

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Disclaimer: This page is for educational and informational purposes only. It does not constitute legal, financial, or tax advice. Real estate laws vary by state and jurisdiction. Always consult a licensed attorney, CPA, and financial advisor before entering into any real estate transaction.