In today’s challenging real estate market, creative financing strategies are more important than ever. Whether you’re a seasoned investor or a new wholesaler, the Morby Method of creative financing offers a proven way to close deals with minimal upfront capital.
At Oakstone Lending, we specialize in providing transactional funding solutions that pair perfectly with strategies like the Morby method creative financing. With over 150 funded deals and the ability to fund everything from earnest money deposits (EMD) to multi-million-dollar double closings, we’re here to help you succeed.
What Is the Morby Method of Creative Finance?
The Morby Method, created by real estate expert Pace Morby, combines traditional financing and seller financing into a unique two-part transaction. It’s designed to enable buyers to acquire properties with minimal cash while giving sellers the financial security they need.
How It Works:
- Traditional Financing:
Buyers secure a loan to pay off the seller’s existing mortgage and any upfront cash the seller requires. This might involve private or hard money lenders. - Seller Financing:
The buyer and seller form an LLC, where the seller finances the remaining balance. This acts as a second mortgage but avoids creating a second lien.
This structure is a win-win: sellers receive significant cash upfront, and buyers gain control of the property without a large down payment.
Benefits of the Morby Method Creative Financing
For Buyers:
- Minimal Cash Upfront: Acquire properties with little to no money down.
- Faster Closings: Bypass many traditional lending requirements.
- Higher ROI: With reduced initial investment, potential returns can skyrocket.
- Flexibility: Navigate high-interest rates and stricter lending criteria with ease.
For Sellers:
- Immediate Cash: Secure a substantial down payment.
- Ongoing Income: Earn passive income through buyer payments.
- Tax Advantages: Spread capital gains tax over several years.
- Negotiation Power: Customize interest rates and terms to your advantage.
Leveraging Oakstone Lending with the Morby Method Creative Financing
While the Morby Method is a powerful tool, you often need additional funding to cover key transaction costs like earnest money deposits or double closings. That’s where Oakstone Lending comes in.
How We Help:
- EMD Funding: Secure contracts with sellers without tying up your own cash.
- Double Closing Loans: Execute simultaneous buy-and-sell transactions with ease.
- Seller Carryback Funding: We offer flat-rate funding to cover creative financing needs.
Real-World Examples: The Morby Method in Action
Let’s explore how the Morby Method and Oakstone Lending work together to close residential, multi-family, and commercial deals.
Residential Deal: The Morby Method with EMD Funding
You’ve negotiated a deal on a $250,000 single-family home, but the seller wants a $10,000 EMD before they’ll sign the contract.
- EMD Loan Amount: $10,000
- Oakstone Lending Fee (40%): $4,000
- Payback Amount: $10,000 + $4,000 = $14,000
You sell the property to a buyer for $300,000, netting a $50,000 assignment fee. After repaying Oakstone Lending, your profit is:
$50,000 – $4,000 = $46,000
Using Oakstone Lending for EMD funding ensures you close deals without tying up your personal funds.
Multi-Family Deal: Double Closing with the Morby Method
You’ve identified a 10-unit property for $800,000, which you plan to resell for $850,000.
- Purchase Price: $800,000
- Double Closing Loan Fee (1.5%): $12,000
- Payback Amount: $800,000 + $12,000 = $812,000
After reselling the property, your profit is:
$850,000 – $812,000 = $38,000
Oakstone Lending’s double closing loan allows you to execute this transaction quickly and efficiently, protecting your reputation as a reliable closer.
Commercial Deal: Morby Method with Seller Financing
You’re targeting a $5 million office building using the Morby Method. The seller requires $3 million in upfront cash and agrees to finance the remaining $2 million through seller financing.
- Traditional Loan: $3,000,000
- Oakstone Lending Fee (2.5% Seller Carryback): $50,000
- Payback Amount: $3,000,000 + $50,000 = $3,050,000
Once the deal closes, you’ve secured an income-generating asset while keeping significant equity intact.
Why Choose Oakstone Lending?
1. Speed Matters
In wholesaling and creative finance, delays kill deals. With funding delivered in as little as 24–48 hours, we ensure you never miss an opportunity.
2. Flexible Funding Options
From EMD loans to multi-million-dollar double closings, we provide the capital you need to execute deals of any size.
3. Transparent Pricing
Our flat-rate fees make it easy to calculate costs upfront, so there are no surprises.
How to Get Started with Oakstone Lending
Step 1: Submit Your Deal
Go to oakstonelending.com and fill out our simple online form.
Step 2: Approval in Hours
We’ll review your deal and provide funding terms within a few hours.
Step 3: Secure Funding
Once approved, we’ll wire the funds, allowing you to focus on closing the deal.
FAQs
What if my deal doesn’t close?
We charge a $250 non-refundable fee upfront to cover transaction costs.
How quickly can I get funding?
Most deals are funded within 24–48 hours. For urgent needs, rush funding is available.
Is there a minimum loan amount?
Yes, our minimum funding amount is $2,000.
Ready to Make the Morby Method Creative Financing Work for You?
At Oakstone Lending, we’re not just a funding provider—we’re your partner in success. Whether you’re implementing the Morby Method, scaling your wholesaling business, or exploring other creative finance options, we have the capital and expertise to help you close more deals.
Submit your deal today or email us at funding@oakstonelending.com. Let’s make your next deal your best deal yet!
