KGCI: Real Estate on Air - Creative Financing Masterclass: Selling Any House in Any Market

Episode Date: April 1, 2026

Summary:In this tactical session, Knolly Williams breaks down the essential creative financing strategies that allow agents to close deals when traditional lending fails. Listeners will learn the mechanics of seller financing, "Subject-To" deals, and wraps, providing a powerful toolkit for navigating high-interest-rate environments or houses that are hard to finance. The episode focuses on moving agents from "order takers" to "problem solvers" by mastering the scripts and structures needed to present these win-win scenarios to both buyers and sellers.

So they wrote me a six-page letter of intent to purchase this shopping center that I have for sale. And they're willing to pay me my full commission, which is 4%. So what's that? 130K is what they're going to pay me to do the deal. But we've got to get creative. Okay. So I've got to go to my client and say, look, you're not going to get your full $3 million,

but you're also not going to have to pay $552,000 in taxes because you didn't get all the money at front. Welcome to the Success with Listings podcast, where we help you get success in the real estate game, the easy way. Now you can get off the roller coaster of Feast and Famine and out of the rat race of competing with every other agent in town. Hi, I'm Nollie Williams. I took over a thousand listings during my first 10 years from the real estate game, and in this podcast, I show you how to have success with listings. Let's go. Now, how do you get creative to move your inventory?

So this is a problem that I've seen some of my agents have. And right now, as of this recording, I've got 274 agents that are part of my organization. And they've come to me and they're like, man, Nolly, my stuff that ain't moving, bro. I got listings, but they're not selling. So how do you do that? Well, you've got to get creative. Write that down. Write down that word.

creative got to get creative i'm going to show you exactly what i'm doing as i drink my breakfast smoothie this is pretty good i got to take another sip hmm chocolate this morning all right so i'm going to show you exactly what i'm doing um i'm sitting my inventory right now i've got 10 listings um i've got three closing in the next uh week and um and i'm and i'm back filling i'm keeping that inventory I'm going to show you how to do that here as well. But how do you get creative? So these are the ways that you're going to get creative, okay? And this is a whole can of worms.

I'm sorry, but it is. And we can go down a rabbit hole here, but I'm just going to tell you that this is what I'm doing. I'm doing seller financing. I'm doing subject two deals. I'm doing wraparound mortgages. I'm doing leases with the option to purchase, and I'm doing short sales.

okay when the market slows down creativity wins okay you got to get creative to move your inventory you got to get creative okay i just got a offer right here uh let me just show you this this came in about 15 minutes before i jumped on the webinar all right this is a letter of intent to purchase i've got a uh property that is for sale for 3.2 million and this person put in their letter of intent and they're ready to purchase it for the full price. Okay, full price. But in order to do that, guess what they want to do? They want to put 14, 1.4, I says 14, 1.4 down. And then they want to finance 1.7. Okay. And they want the seller to finance that 1.7. Okay. So they wrote me a six-page letter of intent to purchase this, this shopping center that I have for sale. And,

And they're willing to pay me my full commission, which is 4%. So what's that? 130K is what they're going to pay me to do the deal. But we've got to get creative. Okay. So I've got to go to my client and say, look, you're not going to get your full $3 million, but you're also not going to have to pay $552,000 in taxes because you didn't get all the money up front.

All right. And so I've got to sit down with my client. You hear what I'm saying and get creative with this. Now, let me share with you these strategies that I'm using. I'm using these every single day, guys, every single day to get my inventory moved. And the majority of my inventory, I've got a piece of land right now that's going for $364,000. We've got three offers on it. One of them wants to put $200,000 down and for the seller to carry a first lien for the balance.

The other one wants to pay the full price. And this is a super, I'm not even going to get into how creative this deal is. Because it's crazy creative, okay? But the seller is actually considering it. Another, a builder came with a very creative deal. I might get into it if we have time later. But the point that I'm making is most of my deals right now are with people that can get creative. Okay.

Every single listing appointment that I do, when I sit down with, them, I'm finding out how creative they can get. And they don't even know. They don't even know Uncle Nollie's trying to find out how creative they can get. Now, if somebody comes to me, okay, let me give you an example of each of these because we can't really get in the weeds with this. But rest assured, I've got information on each of these that kind of goes in the weeds a little bit. Just write them down. You can research this. You can cuddle up with GPT later and learn all this stuff. Okay, don't worry about it. Seller financing. So obviously if the seller, has equity and they are able to finance. Let's say they don't like I have a piece of property now

right now that's listed. It's got it's got 0.8 acres. It's almost one acre. It's got four buildings and it's going for 950, 975, I think, 975. And she's willing to get creative. She does not have a mortgage on it. Okay. So in that case, we can do seller financing. I just have to know what the terms are. like how much do we need to put down? What's going to be the interest rate? What is there going to be a balloon payment three to five years? You know, things like that. So, so seller financing is one.

A subject two. So a subject two, let me see if I've got, yeah, I don't have, I don't have this stuff broken down, but I'm going to show you how to get more details on this. So a subject two is basically, let me give you an example. So I've got the one that I was telling you about earlier where my client has a 2.25% FHA loan. Okay, now FHA loans are assumable. So she could find somebody else that's going to get an FHA loan. They could assume that property, okay, through an assumable situation if the loan is FHA.

That is allowed. Now, it may not be granted for every buyer, but it is an allowable situation. Okay. So I'm now able to promote on MLS that I have an assumable loan, you know, and that creates more eyeballs, okay? The other thing I could do because I know that my seller has about $100,000 in equity is I can do a sub two. Now, a sub two is one where whoever buys the property will come in and pay off the equity and then take over the rest of the note, like the life of the note, okay? it's kind of like a wrap around mortgage but not the same okay because in a sub two they're actually paying up front they're they're cashing the seller out of whatever equity they have i've got another

property where my seller has uh about 60k in equity so we could do a sub two on it and she can get paid her 60k minus my commission uh and other you know closing costs and then she could uh basically sell the property subject to the original conditions of her current loan. All of these things, all these strategies have to be done with an attorney, and it has to be a lawyer that knows how to structure these deals. Okay. So now a wraparound mortgage is essentially what a wraparound is, and I've actually purchased homes with wraps,

and I've done many, many wraps. A rap is where they take the existing mortgage, and they create another mortgage that wraps around the existing one. So let's say, for example, that person has a mortgage of, let's say the house is 500,000 and they have a mortgage of 200K. Well, that 200K mortgage to Wells Fargo is going to be wrapped around a new mortgage, okay, of 500K, and they'll put, when whoever closes on, it's going to put X amount of money down, and they're going to have a structured payments

and so on like that. You could use a servicing company to collect the payments every month. There's all kinds of ways you could do this, but just know that it's possible. So you have to understand all these different mechanisms, not to say that your clients will or won't do them. But let me give an example of this. So let's say my client comes to me, which I had a client tell me this. She said, Nali, let's just lease the house. Have you, throw it in the chat if you had anybody tell you, let's just go.

ahead and rent the house for a year. And let's just go ahead and rent it. Let me throw a, throw a Y in the chat if you've had this happen. Let's just rent it for a year. Wait to the market gets good. And then we'll put it on the market in a year. Okay. So I've got like five five of you that that's already happened to. It's probably many more. Six. Okay. Six, seven of you that's already happened. Okay. So watch this. if that's happened to you, here's what we could do. You could do a couple of things with a person like that. So it's happened to me more than once. I'm like, oh, this person wants to rent the property.

That means they're ready to get creative. Let's go. So I said, hey, why don't we just do a sub two or a rap? Well, what's that? And then I explained to them those two options or we could do a lease with purchase. I mean, with lease with option to purchase. Now, lease purchases are illegal. You can't do those anymore, at least in Texas.

but you can do a lease with option to purchase. If somebody tells me, hey, I'm going to rent the property for a year, I say, well, I understand you want to rent it for a year, but what if you could get all of your equity now and sell it? Well, how does that work? Well, let me talk to you. Let's sit down.

And then I explain to them these three strategies. When you understand how to do these and they're not hard, let me say it again, write this down. It's not hard. It's easy. Write it down. Remember my model. I choose to make it fun and easy.

I choose to make it fun and easy. So when you understand these mechanisms, these different ways of doing things, that anybody that would want to rent their home could do a sub two, a rap, or at least with option to purchase. Anybody that would want to do that could do that. Okay?

Now, what makes a lease with option to purchase different is that the person will typically do a one-year lease, just like they said they wanted. And let me show you guys. Let me see if I could show you this. I hadn't planned on showing this, but I want to show it. So they could do a lease with the option to purchase. So basically it would be a one-year lease,

and then at the end of the lease, it would be a contract. So there'd be two instruments, a lease and then a contract. And the contract would be dated for a year, like for whenever the lease ends, the contract would be dated for that date. And then in the lease, they would have an option to exercise the right to purchase, the first right of refusal to purchase the property. Okay. And then, of course, there's a good old short sale.

Okay. A short sale is when somebody has negative equity. I've got two of those going right now. I suppose to close one next week. So, again, I've done hundreds and hundreds of short sales. But you've got to negotiate with the bank. You've got to work with the bank. And the person has to be upside down.

So pretty much most of the people that have bought properties during COVID are going to be short sales unless they put a lot of money down. Those people that were put, you know, buying them $40, $50, $60,000 above, you know, market, they're going to be in a short sale situation right now, most of them. Okay. Let me show you this. This is going to be hard to see. But this is the kind of stuff that I do for my clients. Okay. So this is, I'm not going to get into weeds with this, but this is a comparison for,

my client where I'm showing her what is the difference between if you were to lease your house oh you want a lease huh well let's look at what it would be a lease and what you what would you would get if you did a rap okay look at this so I really should pull this up but I don't want to get in the weeds because this is going to take us away from our core if she if she did a lease she would get a deposit of 1850 whereas if she did a rap she would get 29,000 Why is that? Well, because the person we'd be asking them for 10% down. So if you're willing to lease it and get $1,150 a month, then you're going to get a security deposit of $1850.

But on a wrap, I could get you $30k. How much more skin in the game? You think that person's going to leave the property in a bad condition? Probably not. And then I share with them some stories, like the one that I've got a listing right now, that the guy listed it to a veteran, thinking that it would be, you know, he's going to help. And we love our veterans.

You know, happy Veterans Day. You're a veteran. I've got my dad was a veteran. You know, bless you. This particular guy that he got, my client got, not a good situation. He trashed the house in two years. Now we've got to sell the property and it's in bad condition. Okay.

So you don't always know what you're getting when you lease, but you got somebody going in putting $20,000, $30,000, $40,000, $50,000 down. They ain't going to trash that house. All right. And even if they do, you got money to fix it. All right. So there's all, when you start to learn these different strategies, you start to be able to help your,

can you see that how understanding how a lot of this stuff works will help you kind of be the go-to person? All right. You're a problem solver now. Okay. By the way, let me just show you guys something. I actually have an article. So I write, I've written articles on seller financing is pretty straightforward, but sub two wraps, lease options.

I've got articles on all this stuff like posts that I've written, which kind of explains each of these different things to my sellers and wraps and so on and so on and so on, right? So all that information is in the academy, but it's in our, it's in the vault of the academy. Okay, so I'm just telling you, don't worry about getting too hung up on how to do this stuff. Okay, write this down. The how doesn't matter. Because you can figure out the how. Don't worry about it. Okay.

You can figure out the how. I just want you to understand that there's more strategies than the ones that you're, that you think or that you're doing. Okay. Let's keep going because I want to keep, I want to have about. 30 minutes in here for Q&A. So let me, let me get back to where I'm supposed to be. And I'm just getting too excited here.

All right. So, all right. So, so, so I love getting creative. There's going to come a time when you're not going to need these strategies as much anymore. You know, hallelujah, praise the Lord. But right now you've got to get, you got to be willing to do that kind of work. Okay. And it's not hard.

Trust me, it's just not hard. It's just that you, if you're not doing it already, you just don't know how to do it. Well, thanks so much for tuning in to this episode of the Success With Listings podcast. If you are serious about taking your real estate career to the highest heights, making more money and helping more clients while working less hours and spending more time with your family, be sure to get your copy of my free book, triple my listings. Absolutely free at Successwithlistings.com. Now, you want to be sure that you subscribe to the podcast and check out Successwithlistings.com

to get your copy of my free book. Hey, I'll see you on the next one.