Morby Method and Lease Options are two creative structures that solve specific deal types where pure SubTo or seller finance won't work alone. Both are about controlling property without owning it traditionally.
Morby is a hybrid. The buyer takes over the existing mortgage SubTo, then layers seller financing on top of the equity gap. The seller gets some monthly income from the equity portion while the original loan stays in place.
Use Morby when the seller has equity but doesn't need it all in cash and the underlying mortgage is too good to lose. The SubTo handles the loan, the seller-financed second mortgage handles the equity at terms you negotiate.
Lease Option (rent-to-own) gives the buyer the right to lease the property with an option to purchase at a fixed price within a set window. The buyer doesn't own anything yet — they're a tenant with a future purchase right.
Lease Options work for buyers who can't qualify for financing today but will be able to in 12-24 months. Or for sellers who want guaranteed income and a future sale price without dealing with the buyer's credit. Common in tighter mortgage markets.
SubTo transfers title now, no new financing. Seller finance transfers title now, seller becomes the bank. Morby is SubTo plus seller-financed second. Lease Option is no title transfer, future purchase right. Pick the structure that fits the seller's actual constraint.
Morby Method and Lease Options are two creative structures that solve specific deal types where pure SubTo or seller finance won't work alone. Both are about controlling property without owning it traditionally.
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